In a pre-Christmas boost for household finances, six of the UK's leading high street banks are rolling out cash incentives totalling over £1,300 for new customers. The offers are designed to entice people to switch their current accounts, with some payouts available even to those who are in their overdraft.
How the Bank Switching Process Works
The lucrative deals are facilitated by the Current Account Switch Guarantee, which promises a seamless transition typically completed within just seven working days. This service automatically moves all your incoming and outgoing payments, such as salaries and direct debits, from your old bank to the new one.
A key point for many potential switchers is that you can switch even if you are in your overdraft. However, the process depends on your new bank. Your new provider must agree to match your existing overdraft limit. If approved, they will settle the amount you owe with your old bank, and you will then owe the debt to your new bank instead.
A Breakdown of the Bank Switching Bonuses
Here is a detailed look at the cash incentives currently on offer from six major providers:
Barclays - £400
Barclays is offering a substantial £400 cash payment upfront, but this is exclusively for higher earners switching to its Barclays Premier Current Account. The deal also includes free enrolment into the Blue Rewards programme and a potential 0% overdraft of up to £500. To qualify, you must not have held a Barclays current account open on or before 7 October 2025 and never have received a switching bonus from the bank previously.
Santander - £200
Santander is providing a £200 free cash incentive. New customers also benefit from a 6% easy-access savings account, 1% cashback on key household bills, and a competitive overseas debit card for spending abroad.
Lloyds Bank - £200
Lloyds Bank is also offering a £200 switching bonus. As part of its Club Lloyds account, customers can choose an annual reward such as 12 months of Disney+, six cinema tickets, or membership to coffee and gourmet clubs. There is a £5 monthly fee, which is waived if you pay in £2,000 or more each month. The account also provides access to a linked regular saver paying 6.25% fixed interest and a debit card with no fees on overseas spending.
First Direct - £175
First Direct is enticing new customers with a free £175 payout for those who switch their account to the digital bank.
Nationwide - £175
Nationwide Building Society is matching this with its own £175 free cash offer. The bonus is available even if you have previously received a switch bonus for a sole account and are now switching to a joint account, or vice versa.
NatWest - £175
NatWest is providing a £175 upfront cash bonus. Additionally, customers can get up to £36 per year in cashback and access a linked regular saver account with an interest rate of 5.5%. You are not eligible if you held a NatWest current account as of 16 September 2025 or have ever received a switch bonus from NatWest, RBS, or Ulster Bank.
What These Offers Mean for You
For UK households, these bank switching bonuses represent a significant opportunity to earn tax-free cash ahead of the expensive festive season. The process is heavily regulated and designed to be hassle-free, making it a relatively simple way to boost your finances. With several banks offering over £175, savvy consumers could potentially earn a combined £1,325 by strategically moving their accounts, though terms and conditions for each offer must be carefully reviewed.
