New current account switching offers worth up to £175 – should you move?

First Direct, Santander and Virgin Money are the latest banks to announce generous switching incentives in a bid to entice new customers to their range of current accounts.

The offers, which include welcome bonuses of up to £175 (the highest amount any bank has paid since March 2020) and cashback on supermarket shopping and fuel spending, are bound to tempt people feeling the squeeze during the cost of living crisis. But be careful: some of the offers come with strict eligibility criteria and you could have a long wait to get the cash.

Here, Which? looks at the new range of switching incentives, what you need to do to qualify, and what else you need to consider before making a move.

What switching incentives are banks offering?

Here are the latest offers from each bank, with details on how to qualify.

First Direct: £175 for new customers

HSBC’s sister bank 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) and a Regular Saver account which pays 3.5% AER.

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.

Santander: £175 for new and existing customers

Santander is offering £175 to both new and existing customers when they switch to a 123, 123 Lite, Everyday, Select or Private current account. 

To get the switching incentive, you’ll need to switch using the Current Account Switch Service, and within 60 days of opening the account set up at least two active direct debits, log on to online or mobile banking and pay in at least £1,000.

You’ll receive the £175 lump sum around 90 days after you initiated the switch.

Both the 123 and the 123 Lite accounts pay up 1%, 2% or 3% cashback on selected household bills, capped at £5 per cashback tier each month.

At the moment Santander customers can get double cashback on their gas and electricity bills, Santander home insurance and Santander life protection for two months from September 2022, paid in October and November. The rate will go from 2% to 4% per month and the monthly cap on cashback for this tier will double from £5 to £10.

Monthly fees also apply to some of the accounts included in the offer. The 123 account has a £4 charge, while it’s £2 a month for the 123 Lite account. Both the Select and Private accounts incur a £4 monthly fee. 

• Find out more: best bank accounts for cashback

Virgin Money: 25% cashback (up to £160) on supermarket and fuel spending

Instead of a welcome payment, Virgin Money is offering new customers who switch to its M Plus or Club M current accounts 25% cashback on supermarket and fuel spending.

To qualify, new eligible customers need to switch using the Current Account Switch Service with at least two direct debits, sign up to Virgin Money Cashback in the banking app and pay at least £1,000 into the linked saver account within 45 days of opening their new account.

Switchers to the Virgin Money M Plus Account and Virgin Money Club M Account can earn cashback at any supermarket and any petrol station in the UK, but cashback is capped at £160 and you will have 60 days to earn cashback from the date you become eligible.

The cashback you earn will be paid into your cashback account within 35 days of each qualifying spend.

M Plus and Club M current accounts pay 2.02% AER on balances up to £1,000, but the Club M account is a packaged account that has a monthly fee, which is £14.50. 

Virgin Money achieved a customer score of 63% in our latest survey of bank brands, with the in-branch service rated two stars. You can find ou what real customers thought of the packaged account in our latest packaged accounts survey.

Halifax: £150 for new customers paid within 10 days

New customers who switch to the Halifax Reward Current Account or Ultimate Reward Current Account will receive £150 within 10 working days of opening. 

Again you must use the Current Account Switch Service and your switch must include a minimum of two direct debits to qualify for the incentive. You won't be eligible for this offer if you received a switching offer since April 2020.

You’ll have to be quick too, as the offer ends on 5 September 2022.

The Reward Account allows you to earn a monthly lifestyle benefit or £5 cashback each calendar month as long as you spend £500 on your debit card or keep £5,000 in your account each month. Just bear in mind that there is a £3 monthly fee unless you pay in £1,500 or more each month.

The Ultimate Reward Account is a packaged account that costs £17 a month and comes with the features of the Reward account plus a range of insurance perks. You can find out what real customers thought of the account in our packaged accounts survey.

Nationwide: £125 for members and £100 for non-members

If you’re an existing member of Nationwide – for example, a mortgage holder – but don’t have a current account with it, you can get £125 to switch. Otherwise, non-members are being offered £100 if they make the move to FlexPlus, FlexDirect or FlexAccount accounts.

You’ll receive the money in your account within 10 calendar days of the switch completing. But, similar to other deals, you’ll need to switch using the Current Account Switch Service and move two direct debits to be eligible.

The FlexDirect current account pays 5% interest on £1,500 for a year (then pays 0.25%) and offers an interest-free overdraft for a year (then 39.9% APR). Its FlexPlus packaged account is also highly rated.

Nationwide regained its Which? Recommended Provider status this year. Five-star ratings were achieved for its customer service, as well as its telephone and online banking services. 

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Don't switch for cash alone

Don't let the promise of money be the only reason why you switch. There are important considerations depending on your individual needs and circumstances.

If you prefer to manage your money in-branch, an online or app-only account will not be best for you. Similarly, if customer service is important to you, use our reviews to do some research on the bank or building society's reputation. 

You might also want to think about other perks on offer such as cashback and interest on your balance. 

Take a look at our range of guides to help make your decision:

• Best bank accounts for cashback
• Best high interest bank accounts
• Best bank accounts for overdrafts
• Best packaged accounts
• Best basic bank accounts
• Best and worst banks as rated by customers

How do I switch current accounts?

Most banks are part of the Current Account Switch Service (CASS), which means it should take just seven working days to switch you over from your old account once the new account is opened. 

If you want to check which banks and building societies are participating, you can search by name on the CASS website. 

• Find out more: how to switch your bank account – we outline the process step by step.