NatWest launches new £200 switching bonus - should you get a new bank account?

NatWest has launched its highest ever switching incentive for new and existing customers who move to its current accounts.

Those thinking of switching to the NatWest Select and Reward current accounts could pocket £200 for the move.

You could earn up to £5 a month with the Reward current account to help boost your finances - but there is a monthly fee to take into account. 

The high street bank also announced a new prize draw for those that use its 'round-ups' feature.

Here, Which? takes a closer look at the new switching offer, and compares it to other deals on the market right now.

Which accounts are included in the switching offer?

NatWest Reward Current Account

The Reward account gives you the chance to earn up to £5 in rewards each month, which can then be redeemed as cashback, traded for gift cards or donated to one of its chosen charities. 

You can earn £4 a month just by having two or more direct debits set up from the account, but they must be for at least £2 each. 

You also earn £1 a month back in rewards by logging into the mobile app once a month.

This means you could earn £60 a year, but the account does have a £2 monthly fee. 

You can also earn 1% in cashback rewards when you spend with NatWest's retail partners, which include Caffe Nero, ATG Tickets, Boux Avenue, EuropCar and Barrhead Travel. 

The switching bonus should be paid within seven days, as long as you pay at least £1,250 into the account and log on to its mobile banking app.

• Find out more: best bank accounts for cashback

NatWest Select Current Account

NatWest’s Select account is also included in the switching offer.

It’s an everyday current account with no monthly fee.

You’ll also be able to set up a linked regular saver account that currently offers 6.17% AER, where you can save up to £150 a month (max £5,000) - we explain how this savings account works further down in the article. 

• Find out more: best high-interest bank accounts

What's in the small print?

To get the switching incentive, you’ll need to switch using the Current Account Switch Service (CASS). 

Within 60 days of opening the account you must deposit £1,250 into your account and log into the mobile banking app. 

New and existing customers cannot have previously received or participated in any other switching offer from the NatWest Group, which includes Royal Bank of Scotland and Ulster Bank since October 2017. 

Although the offer is also for existing customers, you’ll have to be switching a non-NatWest bank account to your existing NatWest account.

NatWest said that in some cases if you apply for a NatWest Select or Reward account and do not meet the criteria for that account, it can open a Foundation account for you instead. If this happens you’ll still be eligible for the switching offer if you meet the other conditions.

• Find out more: how to switch your bank account

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What else is NatWest offering its customers?

NatWest also announced a few other perks including a prize draw and boosted savings rates. 

Rate boost for saver account

NatWest increased the rate of its Digital Regular Saver account from 5% to 6.17% AER (variable). 

The top rate of interest is paid on balances up to £5,000, and customers can save up to £150 every month. 

• Find out more: how to find the best savings account

Prize draw for round-ups  

NatWest customers can enter the prize draw to win up to £10,000 by turning on the bank’s round-ups feature - each time a transaction is made, it's rounded up to the nearest pound and the change is saved in a separate account. 

There are 33 prizes to be won, with three top prizes of £10,000 and 30 prizes worth £500. The prize draw closes on 21 April 2023. 

Easier to pay contacts

Customers using the Pay Your Contacts feature in the app can now send a secure payment link over email, WhatsApp or text. 

This means there is no need to send over bank details, as all the information is contained in a secure link that can be used to pay any bank customer.

Is NatWest a good provider?

NatWest received a customer satisfaction score of 72% in our latest survey of the best and worst banks, coming 15th out of 21 providers. 

Customers rated it highly for its online banking service and its online banking app, but it received a middling score for its customer service and how it deals with complaints

• Find out more: best and worst banks

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What other switching offers are available?

There are three other switching offers currently on the market. 

TSB £125 + £75 switching offer

You can get £200 if you switch to a TSB Spend and Save account, or Spend and Save Plus, using the Current Account Switch Service (CASS) by 24 March. 

This account has no monthly fee, and allows you to earn up to £5 monthly cashback, for up to six months, when you make 20 debit card payments each month.

You can also put money aside in up to five savings pots, which pay 2.52% AER.  

Spend and Save Plus has a £3 monthly fee. It also offers £5 cashback every month, but there's no time limit on how long you can earn it for. This means you could earn £60 a year, although you will spend £36 on account fees. 

The account also offers overdrafts of up to £2,000, and worldwide fee-free debit card transactions. 

Both accounts are eligible for the switching offer. You’ll receive £125 by 21 April if you set up at least two direct debits, use your debit card at least once and log into internet banking or the TSB mobile banking app.

A further £75 will be paid into your account by 31 October if you have kept your account open, and paid in at least £500 each month, made at least five debit card payments and kept your two direct debits. 

Lloyds Bank £200 switching offer

Like NatWest, Lloyds Bank is also offering customers £200 for people switching to its Silver or Platinum accounts before 20 March – but note that both of these accounts come with monthly fees. 

The Silver Account costs £10 a month and offers everything its ordinary classic account would, but you also get UK and European multi-trip family travel insurance up to age 65, AA breakdown family cover with roadside assistance, and mobile phone insurance.

The Silver account would set you back £120 annually, but as you are getting £200 cashback to switch, this would still leave you with £80 profit.

The Platinum Account costs £21 a month, and offers all of the same perks that come with the Silver Account, plus extras such as worldwide multi-trip family travel insurance up to the age of 80, AA breakdown family cover with roadside assistance and national recovery at home. 

The Platinum account would set you back £252 annually. 

These accounts are only worth it if you are going to make full use of the insurance benefits. 

• Find out more: best packaged bank accounts

First Direct £175 switching offer

First Direct is offering £175 to new customers who switch to its 1st Account.

You must use the Current Account Switch Service to switch, deposit £1,000 within three months of opening the current account and you cannot have been an HSBC current account holder on or after 1 January 2019. 

The bonus will be paid into your account within four months.

The 1st Account offers a £250 interest-free overdraft (subject to status), has no monthly fees, and has a Regular Saver account which pays 7% AER, fixed for 12 months.

First Direct achieved Which? Recommended Provider status in our latest survey on the best and worst banks. 

Nearly every aspect of its service was rated five stars by customers, including online banking, complaints handling and overall customer service.

• Find out more: what banks are doing to help with the cost of living

When will the switching deal end? 

NatWest hasn’t provided an end date to the switching offer, however we know these offers don’t always stay around for long if they prove popular.

For example, the recent £200 switching offer from Santander was only available for a few weeks before it recently closed.

So, if you've spotted a bank account that's right for you, we suggest you move sooner rather than later.

• Find out more: which banks have the best online and app security?