A GROWING list of current account providers are attempting to lure customers with the promise of cash rewards or spending vouchers, but qualifying for these benefits may not be as straightforward as it seems.
M&S Bank became the latest to enter the fray when it announced that new account holders will receive up to £180 of gift cards, while its existing credit card customers stand to gain even more.
Paul Stokes, the bank’s head of products, said: “As well as rewarding our existing credit card customers with up £220 when they switch their current account, we’re also welcoming new customers with a £100 M&S gift card when they switch and the potential to receive a further £80 after 12 months.
“Current account customers also have access to a high-interest regular savings account and reward points every time they shop in M&S.”
The M&S monthly saver account pays five per cent a year and customers can deposit between £25 and £250 a month. The reward points are worth 1% of debit card spending in stores and online.
Customers also qualify for a fee-free £500 overdraft, with the first £100 interest-free.
HSBC’s Advance account has the highest up-front cash incentive, at up to £175. Successful applicants also get access to its regular saver account paying 5% for 12 months.
Halifax is offering £135 plus monthly reward payments, while First Direct, which is consistently rated as one of the best banks for customer service, will pay £100, as will Nationwide if the new customer is referred by an existing one.
But these sweeteners are subject to terms and conditions, and failure to meet the full list will mean losing out.
All these accounts must be opened via the seven-day Current Account Switch Service (CASS), which automatically closes the applicant’s old account, so it is not possible to keep both running side by side.
To qualify for the M&S bonuses, customers must pay in £1,250 a month, have a minimum of four active direct debits, register for internet banking and opt for online statements within three months.
The HSBC Advance offer, which closes on April 1, is only open to those who have not held one of its accounts since January 2016. To get the full £175, customers must apply via an intermediary such as Money Super Market or Money Saving Expert. Those who go direct will get only £150.
The CASS switch must be started within 30 days of opening the account, There is also a minimum monthly deposit requirement of £1,750 and at least two direct debits or standing orders are required.
For those who cannot afford this, HSBC’s standard current account, which has a minimum deposit level of just £500, is offering £75 to switch.
Halifax’s Reward account promises £50 before the switch completes but to get the remaining £85, customers must pay in £1,500 a month for six months, use their debit card at least once and sign up for paperless statements.
For every month they deposit £750, remain in credit and pay out two direct debits, account holders will receive a reward payment of £2, making a potential total bonus of £159 in the first year.
Only those who have never held a First Direct account are eligible for its £100 switching bonus, and customers must start paying in £1,000 a month within three months to avoid a £10 monthly fee.
In exchange, they can apply for an interest-free £250 overdraft and, like M&S and HSBC Advance customers, get access to a savings account paying 5%.
The Nationwide offer applies to new current account customers referred by existing ones - and both parties will receive £100 - but to qualify, the new customer must set up at least two direct debits.
Its FlexDirect account charges no interest on authorised overdrafts and pays 5% on credit balances for the first year, after which the rate drops to 1%.
Before signing up to any of these offers, though, it is worth considering what you need from an account.
If you tend to have a high credit balance, you might earn most over the long term by choosing a provider offering a market-leading rate. TSB Classic Plus pays 5% on the first £1,500, provided you pay in £500 a month and register for online banking and paperless statements.
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