Best incentives to switch bank accountSwitching current account could earn you £100
25 October 2012
As Halifax once again offers £100 to customers who switch their current account, we take a look at the best switching incentives across the market.
Halifax, a part of the Lloyds Banking Group, offered the same cash incentive at the beginning of the year and the deal matches that offered by First Direct.
While those two banks are the only ones offering cash incentives for switching bank account direct, consumers can still potentially get money if they switch using a cashback site.
Is it worth switching bank accounts to Halifax?
Halifax’s £100 switching incentive is only open to new customers and ends on 2 December 2012. The £100 will be paid directly into your new Halifax bank account once the switching process starts.
If you switch to its Reward Current Account and pay in £1,000 per calendar month you will receive £5, after tax, every month. However, if you're a higher-rate taxpayer, you may have to pay extra income tax on the reward payment.
How does the Halifax switching offer compare?
Halifax's offer matches the £100 incentive that First Direct pays. However, Halifax scores a lowly 54% in our customer satisfaction ratings.
Meanwhile, Which? Recommended Provider First Direct top scores with 93%. However, you will need to pay at least £1,500 a month into your bank account in order to qualify for the payment.
Consider using a cashback site when switching bank accounts
If neither of these offers appeal, but you want to switch accounts and earn some cash for doing so, then it might be worth checking cashback sites.
At the moment, only Santander is offering deals. If you’re looking to open Santander’s 123 current account, which helps you pay your monthly bills as well as offering cashback and credit interest in return for a monthly charge, then you can get £55 for switching via Topcashback or £45 via Quidco.
You can also open Santander’s standard everyday account and get £33 from both Topcashback and Quidco. It is worth remembering that Santander is at the bottom of our customer satisfaction ratings table, though.
Finding the best bank account
The best bank account for you will largely depend on whether you always stay in credit, use an authorised overdraft or just occasionally dip into the red.
It will also depend on whether you will make use of any extras that come with fee-charging bank accounts.
Read our guide to finding the best bank account before you switch.
Big change needed to drive banking reform
Which? has launched the Big Change campaign which is calling on the banks to put customers first.
If you are tired of paying for the mistakes of irresponsible banks and think it's time to change the focus from sales to service then you can pledge your support to our campaign by clicking on the link above.
- Find the best bank account – by following five simple steps
- Switch bank accounts – top tips and a step-by-step guide to switching bank accounts
- Complain about your bank account – if you’re fed up with your financial provider