Banks Are Back With Handouts To Lure In New Customers
If you are tempted to switch accounts for the promise of free money or wine, weigh up the costs
Banks eager for consumers cash are once again offering everything from free money to complimentary wine but people would be wise to weigh up all of the options before shifting banks.
Typically, the new year starts with a flurry of offers. This year has been more muted until three of the major providers came out with new incentives.
First Direct is offering £100 cash to those customers switching to its 1st Account, while HSBC is offering £125 to anyone switching to its Advance or Premier current accounts. Virgin, meanwhile, is giving 12 bottles of wine and a £50 donation to charity.
It is a competitive market for customers as challenger banks increasingly attract their attention. Banks hope that any new account holders will then use other services, such as mortgages.
Offering money would seem to bear fruit. According to the Current Account Switch Service , set up by banks to smooth switching, Halifax gained more than 22,000 new accounts from July to September last year. In the middle of that same period, it had a £100 switching offer for new customers. During the same period, HSBC did not launch a cash offer until midway through September and it lost almost 15,000 accounts.
However, consumers should look around at all providers before moving their money based on new offers, says Rachel Springall from financial information site, Moneyfacts.
Find The Right Account By Comparing Bank Switch Offers
Before the bank account switch can start, you need another account to transfer your existing one to. If you don’t already have one open you’ll need to apply for one before arranging the switch.
Our comparison shows personal & premium current accounts available from UK banks and building societies that you can switch to.
Check the account is right for you and better suits your needs, look for features like:
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Lower overdraft fees
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Better customer service ratings
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Extra benefits e.g. breakdown cover
You can also compare bank switch offers as several banks offer cash for switching to them. Here is more on;how to choose a current account.
Should You Open A Paid
Monthly fees are higher once you go beyond NatWests Reward account and will cut into the cash gains. The Reward Silver account costs £10 a month, and its £20 for the Reward Platinum.
However, the accounts offer other perks including travel insurance.
On Premier Reward Black accounts, monthly fees are high at £31 but it is possible to earn as much as £10 a month back: £9 on having two direct debits of at least £4.50 each, plus £1 on using the mobile banking app.
With all these accounts, its worth studying the details to work out whether you need the added extras, and whether they offer true value for money.
- Find out more: how to open a bank account online
Also Check: What Kind Of Bank Account Earns Interest
Do I Have To Close My Old Account
If you use the Current Account Switch Service to switch, your old bank will close your old account. This ensures that any payments made to your old account are automatically redirected to your new account with us.
If you would like to keep your old account open then you are free to do so, but you wont be able to use the Current Account Switch Service to do this, and you will not be covered by the Guarantee. Speak to your existing bank and they can help explain your options.
Cibc Bank Account Promotion
Open a new CIBC Smart Account and get a waiver on the monthly fee for up to 12 months.
To qualify for the offer:
- Open an account
- Set up direct deposit or two pre-authorized debits
Following the 12-month promotional period, a monthly fee of up to $14.95 applies if your daily balance falls below $3,000.
Value of promo: Save $179.40 in fees plus a $300 cash bonus.
Caveat: This is not a no-fee account and you will need to keep a minimum balance plus set up a direct deposit or two pre-authorized debits every month to keep it fee-free after the first year.
Also Check: Can I Transfer Money From Credit Card To Bank Account
Why Set Up A Joint Bank Account
There are many reasons why someone may consider opening a joint account. For example, couples may set up a joint account to pay household bills or deal with other shared expenses. This is one of the most common uses of joint accounts.
In some cases, joint accounts may be considered as an option for someone to get help from family members or friends to pay bills and manage their finances.
For example, health conditions or mobility issues could make it difficult for someone to manage their personal banking on their own. Getting to the bank or using online banking services can be difficult for some people. A person may consider setting up a joint account with a family member, such as an adult child, after the death of a spouse who used to deal with the household finances.
It may also be important to consider other consequences of a joint account such as whether probate fees or taxes will apply upon the death of a joint account holder or whether the remaining funds are intended to form part of the deceaseds estate or be gifted to the surviving joint account holder. These considerations may be addressed in consultation with a lawyer.
Why Switch Current Account
There are many reasons why people might choose to switch bank accounts. It could be a new reward that youve taken a fancy to, or perhaps a new account has better features than the one you already have.
Here are some of the reasons people might switch:
- You could earn £5 or a lifestyle benefit each calendar month if you switch to a Reward Current account or Ultimate Reward Current Account. Some conditions apply. Please see our Reward Extras page for details.
- Well move all your payments; Any payments, Direct Debits, Standing orders and remaining balance will be transferred into your new current account.
- Choose your switch date; Switch in 7 working days or select a later date that suits you.
- Up to 15% Cashback Earn as you shop with Cashback Extras. Activate offers through Online or Mobile Banking and shop with your debit card at selected retailers. Merchant offers and cashback amounts vary. T&Cs apply.
Read Also: How Long Before Bank Of America Charges Overdraft Fee
Identify Payments In Past Statements
Review the entire year of transactions in your old account to ensure that you account for any upcoming payments that are typically billed on a less frequent basis. Last months statement is not enough, and three months should be considered the bare minimum. You may only make certain payments annually or quarterly, and those tend to be important payments . Other payments may be rare, such as PayPal drafts out of your;checking account;for infrequent eBay purchases.
Make a list of all your expenses, and check them off one-by-one as you make arrangements to switch the bill payments to your new bank account.
An Easy Switch In Seven Working Days
Day 1-2
- Your TSB account is already up and running. Well contact your old bank or building society to arrange the switch. Well let you know that they have approved your request.;
Day 3-5
- Well transfer all your existing payment arrangements. Your Direct Debits, standing orders and payees will be set up on your TSB account ready for the big switch date.
Day 6
- If you owe money on your old account which youve asked us to repay, nows the time to make sure theres enough money in your TSB account to cover it.
Day 7;
- Your switch will be complete. Your balance will have been transferred and your old bank or building society account will be closed. Youre all go with us at TSB.
Day 8+
- For at least 3 years after your switch, any payments sent to or requested from your old account will be redirected to your TSB account.
Recommended Reading: How Much Can I Overdraft Td Bank
Which Accounts Can I Switch
You can use the service to switch your current account from and to any of the participating banks and building societies. Joint accounts can be switched, as long as both parties agree to the switch and you are switching to another joint account. It is not possible to use the service to switch a joint account to a sole account.
We can not switch savings accounts. Any other products you have with your old bank will not be moved at the same time. If you have an ISA with another provider you can transfer it to NatWest using our transfer process here
Hsbc Uk Is Offering Customers 110 To Switch Accounts After Lloyds Bank Launched A 100 Switching Offer Last Week
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The choice of cash perks to switch current accounts is growing, as another major bank launches a new offer.
HSBC UK announced that its current account switch offer has returned, providing those switching their current account to an Advance or Premier Account with £110 in cash plus an additional £30 to eat in using Uber Eats or to eat out using the Dining Out Gift Card.
The offer is available from Monday.
Customers can even use the offer to help celebrate Christmas, if they can wait that long to take advantage
Fiona Anderson, HSBC UKs head of everyday banking, said: With our Uber Eats voucher and the Dining Out Gift Card being valid for six months after the account opens, customers can even use the offer to help celebrate Christmas, if they can wait that long to take advantage.
Last week, Lloyds Bank also launched a new offer of £100 cash to switch.
Customers using the seven-day current account switch service to change to a new Club Lloyds current account or new Club Lloyds Platinum account will receive the cash within 10 days, it said.
Many brands no longer offer an up-front perk to entice new business, finance expert Rachel Springall from Moneyfacts.co.uk said last week so the new offers signal a return to cash being offered.
In the past, some banks have offered customers as much as £175 to move to them.
Read Also: How Much Can You Overdraft With Bank Of America
Td Bank Convenience Checking $150 Cash Bonus
As an alternative to the TD Bank Beyond Checking offer above, you can apply online for a new TD Bank Convenience CheckingSM account, which has a much lower minimum balance requirement. Youll get a $150 cash bonus once you receive direct deposits of more than $500 within 60 days.
To qualify for this offer, you must be a U.S. resident and apply for the offer online. The Convenience Checking account typically includes a $15 monthly maintenance fee, but its waived if you keep a low minimum daily balance of at least $100.
Students and young adults ages 17 through 23 qualify for additional perks, such as no monthly maintenance fee and no minimum balance requirements.
This offer is available to residents of the following states: CT, DE, DC, FL, ME, MD, MA, NH, NJ, NY, NC, PA, RI, SC, VT, VA.
If You Dont Want To Switch Everything
The Partial Switch Service lets you manage your account transfer, at your own pace and well support you every step of the way. You tell us which parts of your old account you want to move, including any balance. Transferring your old account like this isnt covered by the Current Account Switch Guarantee and will take a bit longer than seven working days. But if you do choose to do it this way you have the peace of mind of knowing theres a dedicated team on hand to help at every stage. You can start a Partial Switch in one of our Branches.;
Read Also: Do Banks Give Personal Loans
Editor’s Note: Looking For Business Loans For Your Company If You Would Like Information To Help You Choose The One That’s Right For You Use The Questionnaire Below To Have Our Partner Buyerzone Provide You With Information For Free:
Switching Banks: Comparison Shopping
Once you know all of the things your business needs from a financial institution – and can anticipate your future needs – comparing what banks offer in your area and worldwide is relatively simple. Search for banks that specialize in small business, and call them to request specific information, including additional services, fee structures, and interest rates.
Even though you’re looking for just banks that will offer services for your small business, and small banks often are a great fit for businesses in their communities, it might be wise to start broad, Rose says. Look at all your options.
A credit union can be a great for a specific type of business. “A credit union has different regulations as far as what it must abide by for giving a small business loans,” Rose says. “But if you do qualify, a credit union can be more competitive with its rates.”
Dig Deeper: Scoping Out Start-up Banks
Switching Banks: Meeting with Potential Bankers
Before setting up meetings with potential bankers, review the bank’s written literature, and create a list of questions. Seiwert, who spent 30 years as a banker, recommends asking some or all of the following:
Switching Banks: The Smooth Transition
Congratulations if you’ve found a new banker. Now, how can you make the transition as seamless as possible?
Check Who Owns Each Bank Before Making A Switch
The Financial Services Compensation Scheme protects your savings for losses up to £85,000 should your bank or building society go bust, as long as it is authorised by the Financial Conduct Authority . However, the scheme protects your savings up to £85,000 per bank or building society providing the bank or building society has its own banking authorisation. Some banks and building societies share their banking license with other brands because they are part of a bigger group .
In these instances, you will only be covered for £85,000 across both banking brands for accounts in your sole name . Therefore, it is important to ensure that you understand how switching bank accounts will impact your protection under the FSCS when viewed in the context of your existing accounts. This handy tool allows you to select the banks and building societies that you currently hold money with to see your level of protection under the FSCS if any of them were to go bust.
Also Check: Are Banks Open On Juneteenth Day 2021
How To Start Your Switch
You will need to have a TSB account open before applying to switch. Once your account is open you can apply to switch via internet banking or visit one of our local TSB branches.;
When you apply to switch to us, we’ll ask for:
- The sort code and account number you want to switch from
- Your debit card number and expiry date if its a joint account we need details of both cards
- The maximum amount you would like us to send to your old account to repay the overdraft if youre using one;
You can request to switch when you apply for a current account online, or at any time after.;Its a good idea to check your old bank has up-to-date name and address details for you. If they are not the same as the details you give us, your switch will not work.;
If youve got a TSB account already, simply complete this quick online form.
Find out more about the Current Account Switch Service;before you switch.
Hsbc Launches New 100 Bank Switch Offer To Customers Who Move Their Current Account From Today
The deal also includes £30 meal vouchers for dining in or out.
- 09:56, 13 SEP 2021
HSBC UK has announced the return of its current account switch offer, providing those moving their current account to an Advance or Premier Account with £110 in cash plus an additional £30 to eat in using Uber Eats, or to eat out using the Dining Out Gift Card.
The offer follows hot on the heels of one launched by Lloyds Bank last week, which is offering customers £100 to switch to them using the seven-day current account switching service – and paying out the cash within 10 days of completing the move.
The Club Lloyds current account has no fee for maintaining it – as long as people pay in £1,500 each month.
Read More
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Fiona Anderson, HSBC UK’s head of everyday banking, said: “With our Uber Eats voucher and the Dining Out Gift Card being valid for six months after the account opens, customers can even use the offer to help celebrate Christmas, if they can wait that long to take advantage.”
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Get 110 And More When You Switch To Hsbc Advance
Get £110, plus a;£30 Uber Eats voucher or The Dining Out Gift Card, when you switch using the Current Account Switch Service. To qualify for Advance, you’ll need to pay in £1,750 a month and be approved for an arranged overdraft of £1,000+.;Offer for new customers only. Offer may be withdrawn at any time. Check with Uber Eats or The Dining Out Gift Card for local availability. Eligibility criteria, further offer and account;T&Cs apply.