Get paid £220 in M&S vouchers to switch bank
M&S Bank has brought back its leading introductory offer, in an attempt to lure new current account customers with up to £220 in M&S Vouchers.
The offer was available earlier this year before it got pulled in April, but it’s now back.
It sees people who switch to an M&S bank account via the Current Account Switching Service and transfer two direct debits receive a £100 M&S gift card. There’s no minimum deposit to qualify for the £100 voucher.
- See our Compare current accounts tool to check if you can switch and save.
However, customers who do deposit at least £1,000 a month into their account - roughly equivalent to £14,000 income, pre-tax – will receive an additional monthly £10 voucher for a year, taking the total to £220. The first voucher will be sent within a month of joining, the others will be sent on a monthly basis.
Prospective M&S Bank account holders can either get its standard Current Account, or its Premium Current Account, although this comes with a £10 monthly fee.
Both accounts include a £500 automatic overdraft. The first £100 of which is free. There are no fees for using the overdraft, but interest is charged on balances of over £100 at 18.9% AER.
M&S Current account customers also earn one loyalty point for each £1 spent in M&S, equivalent to 1% of their shopping. Points are rewarded with quarterly vouchers.
If you’re happy with M&S vouchers instead of cash, this is a significantly more generous deal than can be found elsewhere at the moment.
It’s also possible to boost the value of the account even further, as M&S offers a regular savings account to customers, paying 6% interest. Here, if you pay the maximum £250 per month into the account,you can earn an extra £96.63 interest in the first year, taking the full value to £316.63.
However, if you want to get paid a decent bonus to change bank account but don’t want vouchers, the Co-operative Bank offers a £150 sign up bonus, in cold, hard cash. To qualify, customers must join via the Current Account Switching Service, set up two direct debits and pay in at least £800 each month.
- See our Best current accounts guide for weekly updated top picks.
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.
Where APR is the rate charged for money borrowed, Annual equivalent rate is how interest is calculated on money saved. The AER takes into account the frequency the product pays interest and how that interest compounds. So, if two savings products pay the same rate of interest but one pays interest more frequently, that account compounds the interest more frequently and will have a higher AER.