Clydesdale and Yorkshire launch £150 switching bonus, but how does it compare?
Current account holders can now earn £150 for free, as Clydesdale and Yorkshire banks become the latest to launch a new year switching incentive.
Until 31 March 2016, current account holders who request to switch to any of the banks personal or private current accounts using the Current Account Switch Service, will get £150 if they also do the following:
- Deposit at least £1,000/month; the first £1,000 must be received within 31 days following the switch completion and the second £1,000 in the following 31 days.
- Include at least two direct debits in the switch and maintain a minimum of two direct debits.
- Register and activate either internet banking or mobile banking within two months of the switch completing.
The £150 will be debited to accounts within 70 days of the switch being completed, provided you continue to meet all of the qualifying criteria within this period.
Use our Current Account Comparison tool to find the best account for you.
But how does its switching bonus compare?
If you’re purely looking for free cash, £150 is the largest incentive currently offered by any of the major banks, bar First Direct, which offers the same amount but only via certain third parties, including Moneysupermarket. It offers £125 if you go to it directly.
With First Direct, you need to pay in £1,000 within three months of opening your account to get the £150, plus, if after six months you don’t pay in at least £1,000 each month or have an average balance of £1,000, you’ll be charged a £10/month fee.
What about accounts offering in-credit interest?
Before switching, you also need to take into consideration whether you’d be better off with an interest paying account.
If you can pay in a minimum monthly credit of £1,000 (excluding internal transfers) you can get Clydesdale and Yorkshire banks’ ‘Direct’ current account, which pays in-credit interest of 2% on balances of up to £3,000, which is the equivalent of £60/year pre-tax if you deposit the maximum amount.
TSB currently pays the highest interest rate of the major providers at 5%, but it’s only on balances of up to £2,000 – meaning up to £100/year pre-tax. However, it is currently offering a £100 bonus if you switch to it via Moneysupermarket.com or MoneySavingExpert.com. To get it, you need to register at least two monthly direct debits and pay at least £500 into your account within 28 days of switching.
Santander meanwhile pays 3% interest on balances between £3,000 and £20,000. However, to get it, you need to pay in at least £500/month, have two direct debits set up, and pay a £5/month fee.
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.