Current account customers offered £100 to switch to major bank

A finance expert said it will be interesting to see whether the move prompts other banks to compete by introducing new cash switching offers.

A new £100 switching offer has been launched by Lloyds Bank (Yui Mok/PA) (PA Archive)

A new £100 current account switching offer has been launched by Lloyds Bank.

Customers using the seven-day current account switch service to change to a new Club Lloyds current account or new Club Lloyds Platinum account will receive the cash within 10 days.

The Club Lloyds current account has no fee for maintaining it as long as people pay in £1,500 each month.

Those who pay in less are charged £3 each month.

People can also potentially earn in-credit interest of 0.6% on balances up to £3,999.99 and 1.5% on any part of the balance between £4,000 to £5,000.

The account also has various rewards, including cinema tickets, and cashback.

It will be interesting to see whether this incites other banks to follow suit to compete

Rachel Springall, Moneyfacts.co.uk

The Platinum account, which has an additional £21 monthly fee, has various insurance benefits.

The bank said those opening a new Club Lloyds account will also benefit from a three month fee-free arranged overdraft.

Lloyds said the switching offer may be withdrawn without notice at any time.

Rachel Springall, a finance expert at Moneyfacts.co.uk said: “It’s encouraging to see Lloyds Bank launching a free cash offer for switches at a time where many brands no longer offer an up-front perk to entice new business.

“It will be interesting to see whether this incites other banks to follow suit to compete, as in the past we have seen as much as £175 offered in free cash up-front (offered) by NatWest and HSBC.”

Ms Springall said Nationwide Building Society currently offers £100 for new customers switching to its current accounts and £125 for existing members.

She said: “It’s important that care is taken when comparing offers and consumers would be wise not to get blindsided by an up-front perk, as it’s the overall package of a deal that must be weighed up before they commit to a new current account.

“The cost to borrow using an overdraft, as well as any other benefits, are worth comparing carefully before someone commits to moving their account.”