New current account deals from TSB and Co-op – are they worth it?
TSB and Co-operative Bank have unveiled new offers to tempt Santander 123 current account holders who want to sidestep its new £5 monthly charge.
TSB now offers £100 cash to anyone who signs up for its Classic Plus account via Moneysupermarket.com or Moneysavingexpert.com. On top of the £100 introductory bonus, the account pays 5% interest on balances up to £2,000, gives 5% cashback on contactless spending, worth up to £5 a month, and has a linked regular saver account paying 5% interest a month.
The signup bonus will be paid to people opening accounts before 8 February, providing they switch via the Current Account Switching Service, register at least two monthly direct debits and pay at least £500 into their account within 28 days of moving account.
The Co-operative bank has unveiled a new reward scheme, worth up to £5.50 a month, on its Standard Current Account. There are no monthly fees, and customers will get a £4 reward providing they:
- Pay in at least £800 a month
- Stay in credit, or within an agreed overdraft limit
- Opt for paperless statements
- Login to their account online or via the mobile app at least once a month
- Set up at least four monthly direct debits
Finally, customers get 5p cashback per debit transaction, capped at £1.50 each month. Rewards can either be paid into customers’ accounts, or donated to one of five charities.
Last week M&S Bank introduced a gift card scheme worth up to £220 to people switching to its current account, and Barclays doubled its Blue Rewards scheme in January for new members.
The TSB Classic Plus Account was already one of the best current accounts for in-credit interest, and if you were looking to get one anyway this £100 offer will sweeten the deal.
If you’re tempted by the cash offer, also consider first direct, which pays £150 to new customers signing up via Moneysupermarket, but doesn’t pay interest on in-credit balances.
While free cash from the Co-op isn’t to be sniffed at, you’ll need to do a lot to get it. The Halifax Reward Account is similar, but also simpler.
With Halifax, you'll earn £5 each month every time you don't go overdrawn, providing you set up at least two monthly direct debits and pay in at least £750 a month. You'll also get £100 cash when you open the account.
Halifax also runs regular prize draws for new customers, with a maximum cash prize of £50,000. The next draw is in February, and is available to anyone who signs up between 19 October 2015 and 31 January 2016.
An overdraft is an agreement with your bank that authorises you to withdraw more funds from your account than you have deposited in it. Many banks charge for this privilege either as a fixed fee or charge interest on the money overdrawn at a special high rate. Some banks charge a fee and interest. And other banks offer a free overdraft but impose very high charges for exceeding the agreed limit of your overdraft.
An account opened with a clearing bank (few building societies offer current accounts) that provides the ability to draw cash (usually via a debit card) or cheques from the account. Some pay fairly minimal rates of interest if the account is in credit. Most current accounts insist your monthly income (salary or pension) is paid directly in each month and they offer a number of optional services – such as overdrafts and charge cards – which are negotiable but will incur fees.