New current account deals from TSB and Co-op – are they worth it?

Tom Wilson
11 January 2016

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 or 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.

Moneywise verdict:

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.

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