NatWest is offering £125 to customers who switch to one of its current accounts - its first switching offer since 2009.
The move is intended to stem the number of customers leaving NatWest. The bank lost more than 10,000 current account customers in the first three months of 2017 according to the most recent data available from Bacs.
The offer applies to those switching to a Select, Reward, Reward Silver, Reward Platinum or Reward Black current account using the seven-day switching service.
The Select account has no monthly fee while the other accounts charge fees but come with a range of rewards.
To claim the £125 bonus, customers must apply to switch accounts online by 16 February 2018. The switch must be completed by 16 March and customers must pay at least £1,500 into the new account each month and log onto either online banking or NatWest’s mobile app.
The £125 bonus will be paid by 13 April.
Unusually, this switching offer also applies to existing NatWest Select, Reward, Reward Silver, Reward Platinum or Reward Black current account holders. For example, if you have your primary bank account with another provider and a secondary account with NatWest, you will still be able to earn £125 for switching your account from the other provider to NatWest.
David Crawford, head of NatWest current accounts, says: “Only 3% of UK customers switch banks every year and we believe more customers would benefit from switching to NatWest, especially with our range of Reward accounts that enable customers to earn 2% cashback and our award-winning mobile app.”
How does this offer compare?
NatWest’s £125 switch bonus is competitive, but it can be beaten elsewhere on the market.
HSBC pays £150 to anyone who switches to its HSBC Advance account. Customers need to be able to pay in a minimum of £1,750 per month to qualify, and you will receive an extra £50 bonus if you stay as a customer for 12 months.
First Direct pays £100 cash if you switch to one of its current accounts. It will also pay another £100 if you are unhappy with the service and leave after the first six months. To qualify, you need to transfer via the Current Account Switching Service and deposit at least £1,000 in the first three months.
Halifax pays anyone who switches to its current account a £75 bonus, plus a £3 reward each month you pay in £750 or more, pay out at least two different direct debits, and stay in credit. The same reward is also available on its Ultimate Reward account. That charges a £12 monthly fee, or £15 if you pay in less than £750 per month.
Finally, if you’re a Marks and Spencer shopper, the M&S Bank Current Account offers a £125 M&S gift voucher when you switch, plus a £5 voucher every month for a year. You must pay in at least £1,000 a month. The deal is also available on the £10-a-month M&S Bank Premium Current Account.