Lloyds Bank is offering £175 cash to switch your current account
- Lloyds Bank is offering a £175 transfer bonus for its Club Lloyds account
- Customers need to switch to a Club Lloyds account before 28 March
- This is now the only switching bonus on the market
Lloyds Bank is offering £175 to those who swap a current account for the promised cash within three days of completion.
It is the only bank to enjoy a turnaround bonus as major banks “pause” incentives.
The new offer is for new customers who transfer their current accounts from another bank before March 28, which is the expiration date of the offer.
Existing Lloyds customers – for example those with mortgages or savings accounts – can apply if their current account is with a different bank and they transfer it to Lloyds.
New deal: Lloyds Bank is offering £175 back to customers who switch to a Club Lloyds account from their existing account before 28 March 2024
Switching must be done using the official current account switching service with applications available in branch, online or by telephone.
This process can take seven days to complete, with funds arriving after three days.
There is a £3 monthly fee to maintain a Club Lloyds account – or no fee if £2,000 or more is paid into the account each month.
Banks have hit the pause button on switching incentives, says Andrew Hager, founder of MoneyComms.
“There has been a push for on-chain conversion as a quick way to make money – and ‘take the money and run’ has pretty much killed that market at the moment.”
For most of last year, both NatWest and HSBC have been running £200 deals, attracting a record number of converts.
More people than ever before They transferred their current accounts to a new bank at the end of 2023, figures from the current account switching service indicate, with NatWest and HSBC taking the lion’s share of customer switching between October and December 2023.
For large parts of 2023, NatWest and HSBC have been running £200 transfer deals
James Blower, founder of Savings Guru, believes the current lack of deal switching is purely down to timing.
“There were three shows, and they all just ended, and I think this is just the first wave of another wave to come,” he says.
“These bonuses ebb and flow in line with the desire of the major banks to push to attract more current accounts.”
What is on offer?
To get a Club Lloyds deal, you need to switch to a Club Lloyds account, Club Lloyds Platinum account, or Club Lloyds Silver account.
Aside from the cash, customers who switch to a Club Lloyds account will also gain access to the Club Lloyds Monthly Saver, which pays an interest rate of 6.25 per cent and has a maximum monthly deposit of £400.
This is one of the best regular savings deals. If you deposit the maximum £400 each month, you’ll earn £150 in interest over 12 months.
Skipton Building Society and First Direct both have regular savings accounts that pay an interest rate of 7 per cent, but you can only deposit a maximum of £300 into a Skipton account and £200 into a First Direct account.
Savers who have received a switch offer since April 2020 to switch to any Lloyds Bank or Halifax current account will not be eligible for the Club Lloyds switch deal.
Customers receive a monthly credit interest of 1.5% on balances up to £3,999.99 and 3% between £4,000 and £5,000.
To qualify for this, accounts must be set up using two direct debits each month.
The account also comes with a 0.2 per cent discount on your initial mortgage rate when agreeing a Lloyds Bank mortgage.
(tags for translation) Daily Mail