Banking switch sweeteners may not be around for long

Banking customers looking to switch their account may wish to act quickly to take advantage of upfront sweeteners, according to the latest research by Moneyfacts.co.uk which indicates a short period before they could be withdrawn.

At the same time, consumers who are tempted to switch using the Current Account Switcher Service (CASS) are urged to check the overall package of their deal first and not be swayed by one perk, such as a free cash incentive.

Consumers have two weeks left to get a £125 cash incentive with first direct on its 1st Account; the offer ends on 12 July 2021 and has been available since 14 June 2021.

Virgin Money tweaked the switching incentive last week on its M Plus Account; switchers can receive a £150 Virgin Experience Days Gift Card.

HSBC has been offering £125 for switchers since 10 June 2021. However, it had previously offered the same perk for five weeks before removing it on 25 May 2021.

Halifax does not currently have a switching offer, as it removed its £100 cashback offer in May, which was available for four weeks.

Rachel Springall, Finance Expert at Moneyfacts.co.uk, said: “Consumers looking to make their current account work harder for them may wish to review their current package in light of new incentives being launched onto the market. As we have seen before, switching perks can be withdrawn quickly and consumers could not only receive a cash perk or gift card for switching, but they could earn other rewards or save some money by moving away from their existing current account provider.

“Banking customers could earn £125 in cashback by switching to first direct or HSBC or receive a £150 gift card from Virgin Money right now. Those consumers looking to save a bit of money in their account will find a few options paying credit interest, including Virgin Money which pays 2.02% AER on balances up to £1,000 on its M Plus Account (£20 a year gross) and Santander which pays 0.30% on its 123 Current Account on balances up to £20,000 (£60 a year gross). In a low interest rate environment these are good choices, particularly as many accounts had their credit interest rates cut over the past few years.”