Lloyds launches £175 switching deal - is it worth going for?

Lloyds Bank has launched a £175 incentive if you open a Club Lloyds account, making it the only provider offering cash to switch right now.

Here, we take a closer look at what the deal offers and how Lloyds Bank stacks up for customer service.

What does the Club Lloyds account offer?

The £175 bonus is available to new customers switching to a Club Lloyds account, which includes the Classic as well as the Silver (£10 a month) and Platinum (£21 a month) packaged accounts.

All Club Lloyds accounts come with the option to pick one lifestyle benefit a year. That includes a 12-month Disney+ subscription, six cinema tickets, an annual magazine subscription or an annual Coffee Club and Gourmet Society membership – giving you 25% off at Caffè Nero and 25% off your bill at thousands of restaurants. 

The Silver account comes with European and UK family travel insurance, AA breakdown family cover and mobile phone insurance. The Platinum account includes all the same features but with worldwide family travel insurance.

You’ll also earn 1.5% interest on balances between £1 and £3,999.99 and 3% on balances between £4,000 and £5,000. Interest is worked out daily and paid monthly. 

However, you’ll only earn this if you have two direct debits coming out of the account every month. 

You can also get access to Everyday Offers, which provides cashback when shopping at certain retailers.

There’s a £3 fee for maintaining any of the Club Lloyds accounts (in addition to the packaged account fee), but it will be refunded each month if you pay in £2,000 or more.

Lloyds said the offer can be withdrawn at any time and in the past we’ve found these deals don’t tend to stick around for long.

• Find out more: best packaged bank accounts 2024

What's in the small print

To qualify for the switching bonus you’ll need to switch to a new Club Lloyds Account, Club Lloyds Platinum Account or a Club Lloyds Silver Account using the Current Account Switch Service.

You’ll need to switch between today (13th February) and 28th March. The £175 will be paid to you three days after the switch completes. 

Your switch must include the transfer of a minimum of two active direct debits.

You won’t be eligible for the offer if: 

• you’re switching to any other Lloyds Bank current account other than a new Club Lloyds account, Club Lloyds Silver account or Club Platinum account
• you’ve received cashback for switching to Lloyds Bank or Halifax Bank since April 2020
• you switch your existing Lloyds account to a Club Lloyds account

Find out more: how to switch your bank account

Is Lloyds a good banking provider?

Lloyds Bank received a satisfaction score of 72% in our latest survey of the best banks, putting it in joint 12th out of 21 providers.

Customers rated it very highly for its online banking service, customer service in general, and how it deals with complaints. 

Lloyds also got middling scores for in-branch service, mobile banking service, telephone banking service and calling customer service.

• Find out more: best banks and bank accounts 2024

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Is a Club Lloyds account worth it?

Club Lloyds accounts come with perks and features, such as travel insurance for the Platinum account, and lifestyle benefits for all the accounts. 

If you’re not interested in these perks, or if you won’t be paying in £2,000 a month, you might want to consider other accounts.

To find out if packaged accounts are worth paying for, read our guide to the best packaged bank accounts.

How the switching deal compares

There aren’t currently any other switching deals right now.

But if you're looking to switch your account, research features such as credit interest, cashback, and customer service that can help set providers and deals apart.

• Find out more: 6 reasons not to switch your bank account