Lloyds Bank launches £150 switching offer
18th May 2023
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We don't recommend switching just because a bank is offering short-term perks - we think you should focus on credit interest rates, overdraft charges and its Which? customer score.
But if you're already looking to move, it's worth seeing what incentives are on offer:
Provider | Account name | Switching bonus | Which? Customer Score |
---|---|---|---|
NatWest | Select Account, Reward Account, Premier Select Account, Premier Reward Account | £200 | 72% |
Royal Bank of Scotland | Reward, Premier Reward, Premier Select | £200 | 72% |
HSBC | Advance, Premier | £200 | 71% |
First Direct (WRP) | 1st Account | £175 | 88% |
Lloyds Bank | Club Lloyds, Club Lloyds Silver, Club Lloyds Platinum | £150 | 74% |
Data correct as of 16 May 2023
Which? Customer Score: Our rating for customer satisfaction, based on feedback from real customers. The score is made up of a customer's overall satisfaction with the brand, and how likely they are to recommend that brand to a friend. We surveyed 4,525 members of the general public in September to October 2022. Our full table includes scores and star ratings for all banks, including those chosen to be a Which? Recommended Provider (WRP).
You must switch using the Current Account Switch Service and, within 60 days of opening the account, you must deposit £1,250 and log into the mobile banking app.
The £200 will be credited to your account within 7 days of meeting these conditions (joint account holders will only be eligible for one payment).
You are not eligible for this offer if you (or the joint account holder) have received cashback for switching to NatWest Group (includes Royal Bank of Scotland and Ulster Bank) between 1 October 2017 and 13 February 2023.
You must switch using the Current Account Switch Service, set up at least two direct debits or standing orders within 30 days and pay in £1,500 within 60 days of opening the account.
The £200 will be credited to your account within 20 days of meeting these conditions.
You are not eligible for this offer if you've previously held a First Direct account, or opened a HSBC current account on or after 1 Jan 2020.
You must switch using the Current Account Switch Service and pay in £1,000 within three months of opening the account.
The £175 will be credited to your account within 28 days of all the criteria being met (limited to one payment per customer or joint account).
You are not eligible for this offer if you've previously held a First Direct account, or opened a HSBC current account on or after 1 Jan 2020.
You must switch using the Current Account Switch Service and switch a current account from a different bank.
The £150 will be credited to your account within 3 days of the switch being completed.
You are not eligible for this offer if you've previously received an incentive for switching to a Halifax current account or Lloyds Bank account since April 2020.
The Club Lloyds Current Account has a £3 monthly fee to maintain the account, waived each month that you pay in £2,000 or more.
Most banks have agreed to use the new switching service, 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 here on the Current Account Switch Service (CASS) website.
The switching service is largely automated. The step-by-step process below details exactly what happens.
This short video explains how to find a current account that's best suited to your needs, or you can skip to our advice on choosing the best current account below:
When you apply to the new provider, it will undertake its normal account-opening procedures.
Banks and building societies have to comply with strict money-laundering rules so, when you open an account, you'll be asked to provide two separate documents for proof of identity and proof of address.
You will then need to complete a 'Current Account Switch Agreement' form and a 'Current Account Closure Instruction' form, provided by your new bank or building society,
Your new bank or building society will confirm whether it is using the current account switching service which is backed by the Current Account Switch Guarantee.
This guarantee means that they will correct any problems with payments as a result of the switching process.
You will be able to agree a convenient switch date for you with the new bank or building society.
It can't be a Saturday, Sunday or bank holiday, and must be at least seven working days after your account has been opened.
Once this date has been agreed, your new bank will provide confirmation that the switch has begun and will be completed on the agreed switch date.
You will continue using your old current account up until the agreed switching date, though don't set up new payments such as Direct Debits and standing orders during the seven working days leading up to your agreed switch date.
Your new provider will contact you if there any issues during this period.
On the switch date, your new bank or building society will be responsible for moving your incoming and outgoing payments, and transferring any money to your new account, before closing the old account and sending confirmation that the process is complete.
The Current Account Switch Guarantee outlines how the switching service works and what rights you have if anything goes wrong with the switch.
All providers offering the Current Account Switch Service will abide by these rules:
If you run into any problems during or after the switching process - for example, if your bank fails to comply with the Switch Guarantee - you should complain in the first instance directly to your new bank.
If you're not happy with the answer you get or it doesn't reply to you within eight weeks, you can take your complaint to the Financial Ombudsman Service (FOS).
Under the new switching service, it shouldn't matter what working day you choose to make the switch over to the new account.
However, if all your direct debits and standing orders go out around the same time every month, it makes sense to avoid switching on this day to minimise the potential for any problems.
Yes, having an overdraft isn't a barrier to switching but you'll need to pay off any debt with your old bank.
Whether or not the new account provider offers you an overdraft facility and whether or not it matches your current overdraft limit will depend on your circumstances.
If you've got an authorised overdraft and have a record of managing it well, most banks will consider taking the existing overdraft on.
If the new provider won't let you move your existing overdraft across, you can still switch but you will need to discuss a way of paying off your overdraft with your old bank.
Some may agree to keep the old account open to help you pay it off gradually but others may insist you clear the debt before you switch.
Yes, you can switch a joint account as long as both parties agree to do so.
You can only switch to another joint account held by the same people though - It's not possible to use the CASS to switch from a joint account to a sole account.
Applying for multiple current accounts can affect your credit rating in the short term - because banks must run credit checks for the overdraft facility - but having one or two credit application searches will have minimal impact.
Ideally, you should spread credit applications out, so if you're applying for a mortgage or car finance it may be best to wait until you've secured this before switching bank accounts.
It can be beneficial to have a longstanding relationship with your bank when you apply for credit but lenders are far more interested in your actual credit history so don't let this put you off switching to a better bank account.
Find out more: How to check your credit score for free
No, if you don't want to close your old account, you can do a partial switch instead.
The main downside is that you aren't covered by the service guarantee, so you aren't automatically refunded for any charges incurred as a result of a direct debit or standing order failing to transfer properly.
It may also take longer than seven days to complete the switch.
And, the best switching incentives are often reserved for customers who use the full switch (CASS).
The Competition and Market Authority (CMA) published the final report of its retail banking market investigation in 2016. It proposed various measures to help make it easier for people to shop around and compare banking products, including:
The Financial Conduct Authority (FCA) has also told banks and building societies to publish information to help people make more meaningful comparisons between current account providers.
In these tables, you can also find out details such as the level of complaints made against the firm and how often the firm has had to report major operational and security incidents.
This should give you an idea of any banks that are lagging behind but the next step is to select a current account that works for you.
To help, Which? rates banks and building societies in terms of overall customer satisfaction as well as the individual accounts they offer:
Every year, we survey thousands of current account customers and ask them to rate the service they receive to generate the Which? Customer Score.
Combined with our product analysis of each provider's best free current account, we use this score to choose the Which? Recommended Providers - banks that offer great products and top-notch customer service:
Find out more: Discover the best and worst banks as rated by customers
High street banks tend to save their best interest rates for current account customers so if you're generally in credit, use a high-interest bank account to boost your savings.
You can even open multiple accounts and shift money between them to maximise returns.
Find out more: Earn credit interest from your current account provider
If you need an overdraft to make ends meet, pick an account that offers a free or cheap overdraft.
Overdrafts are very flexible but avoid using one as a permanent form of credit - an unsecured personal loan is more suitable for long-term borrowing.
Find out more: Best and worst bank accounts for arranged overdrafts