Halifax, part of the Lloyds Banking Group, is offering consumers £100 to switch their current account.
Halifax has announced that it will pay £100 to any new or existing customer switching their current account from another bank or building society between 3 January and 19 February 2012.
The move follows similar deals from First Direct and Santander which both offer cash incentives to switch to them. The Co-operative Bank also recently offered £200 to switch, but has now withdrawn this promotional offer.
When will I get the £100?
If you visit a Halifax branch to switch current accounts, you’ll receive £100 on the same day that you open the account and commence the switching process.
If you choose to bank online or by telephone, you’ll receive the £100 when the switching process begins.
How does the Halifax switching offer compare?
Halifax’s offer matches the £100 that First Direct pays. However, Halifax scores a paltry 53% for customer satisfaction, compared with Which? recommended provider First Direct’s top score of 92%. If you can pay at least £1,500 a month into your bank account, First Direct wins hands down.
Santander pays either £100, £200 or £300 depending on whether you have other products with it already. To qualify for the £200 you need to have a mortgage with the bank. Only customers who have a mortgage and savings with the bank get the full £300. Halifax’s offer, on the other hand, is open to everyone.
Martyn Saville, Which? principal researcher, commented: ‘Too few people switch their current account and instead stick with banks that pay little or no interest and offer poor customer service. While this offer from Halifax will encourage some people to switch, it needs to sort out its awful customer satisfaction score if it hopes to keep those new customers for the longer term.
‘Which? believes that a more radical approach is needed to really get the bank account market moving. Switching must be made easier, for example through the introduction of portable account numbers.’
- How to find the best bank account for you – we explain what types of accounts are available
- How to switch bank account – our guide tells you all need to know about the switching process
- Find a Which? Best Rate current account – we help you find the best account for your needs