UK households have a lucrative opportunity to boost their finances this January, with several major banks offering substantial cash incentives to switch accounts. Financial experts have highlighted deals from Santander, First Direct, and Nationwide that could see consumers receive up to £200 in free money.
Lucrative New Year Banking Offers
The team at Money Saving Expert (MSE) has identified the start of the year as an ideal time for people to review their financial arrangements. With banks competing for new customers, switching your everyday banking provider could be a smart financial move. The offers require applicants to use the secure Current Account Switch Service (CASS), which typically completes the transfer within seven working days while protecting all incoming and outgoing payments.
Detailed Breakdown of the Top Deals
Here is a closer look at the specific offers available from three prominent high street banks for those considering a switch.
Santander's Edge Account: £200 & High-Interest Savings
Switching to the Santander Edge current account comes with a £200 cash bonus. The account also provides 1% cashback on household bills paid by Direct Debit and access to a linked easy-access savings account paying 6% interest. There is a monthly fee of £3 for this account.
To qualify for the bonus and benefits, you must deposit £1,500 into the account just once, likely from a salary payment. To continue receiving the interest and cashback, you need to pay in at least £500 monthly and have a minimum of two active Direct Debits. The associated Edge Saver account offers 6% AER on balances up to £4,000 for the first year, which could generate roughly £240 in interest.
First Direct's 1st Account: £175 & Regular Saver
First Direct is offering a £175 switching incentive for its 1st Account. The deal also includes a £250 interest-free overdraft and access to a regular saver account with a 7% interest rate. A key eligibility rule is that you must not have held any product with First Direct before or opened an HSBC current account since January 2018.
The switch criteria require you to deposit £1,000 or more each month, set up at least two Direct Debits, and make five or more debit card payments within 45 days. MSE confirms that the £175 bonus will be paid by the 20th of the month after you meet all the conditions.
Nationwide's FlexDirect: £175 & Competitive Savings
Nationwide is also providing a £175 free cash bonus for switching to its FlexDirect Account. New customers also get a £50 interest-free overdraft and can open a regular savings account paying 6.5%.
To get the bonus, you need to pay in a minimum of £1,500 every month and establish two or more Direct Debits within 28 days of opening the account. The building society states that the £175 will be paid within 10 days of fulfilling all the requirements.
Making an Informed Financial Decision
While the upfront cash is a significant draw, consumers are advised to look beyond the bonus. It is crucial to consider the ongoing account features, fees, and interest rates to ensure the new account is a good long-term fit for your financial habits. The New Year period presents a clear window to potentially earn hundreds of pounds simply by moving your current account, provided you can comfortably meet the monthly funding and Direct Debit criteria set by each bank.
