M&S Bank has launched a new switching incentive, allowing new customers to earn up to £220 in vouchers in the first year.
For a limited time, if you switch to an M&S Bank current account, you’ll earn a £100 M&S gift card plus an extra £10 in vouchers for every month you deposit at least £1,000 in year one.
M&S Bank current account holders can also open a linked regular saver account paying an exclusive rate of 6% AER. The M&S Monthly Saver allows you to save between £25 and £250 a month, meaning you can earn up to £96.63 in gross interest over a 12-month period.
Find out more: bank account reviews – more than 70 bank accounts compared
M&S bank accounts – the nitty gritty
In order to qualify for this offer, you need to use the official Current Account Switch Service and maintain at least two active direct debits. The bonus £10 per month will then be automatically loaded onto the original £100 M&S gift card.
There are two accounts to choose from – the free M&S Current Account, or the M&S Premium Current Account costing £10 per month. The annual Premium benefits include £40 in M&S vouchers to spend on clothing and homeware, a £10 birthday gift, 48 hot drinks vouchers, plus other seasonal treats four times a year valued at £45 by M&S.
Both accounts come with an automatic £500 overdraft, with the first £100 interest-free. All banking customers also earn reward points when they spend money with M&S using their debit card (one point for every £1 spent, 100 points = £1 voucher).
Find out more: how to switch bank accounts – our guide explains the process
How does the M&S bank account switching incentive compare?
The rewards are paid into a gift card, so this isn’t for you if you don’t like shopping at M&S. However, if you do like the brand, the offer of £220 in year one is generous.
Currently, the biggest cash incentive for switching current accounts is offered by Halifax, which pays up to £160 in year one. You’ll get £100 for switching, plus a £5 reward each month you pay in a minimum of £750, pay out at least two direct debits and stay in credit.
However, if you generally maintain a large balance, a bank account offering in-credit interest might be the better choice.
The Santander 123 current account pays tiered interest of up to 3% on balances up to £20,000. If you maintained a balance of £10,000, you could earn around £296 (minus £60 in annual fees from 11 January 2016), which would top the M&S deal.
TSB pays 5% AER on balances up to £2,000, as long as you pay in at least £500 each month. Nationwide also pays 5% AER on balances up to £2,500 for 12 months, falling to 1% AER thereafter, although you’ll have to pay in £1,000 a month to qualify.
If you don’t know where to start, the government’s new Midata scheme allows you to compare current accounts using your own spending data to create a personalised account comparison.
You can also use our current account tables to compare credit interest rates and overdraft charges, as well as its Which? customer score.