Home Money Lloyds Bank offers £175 cash for switching current account

Lloyds Bank offers £175 cash for switching current account

by Elijah
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New deal: Lloyds Bank is offering £175 for customers who switch to a Club Lloyds account from their current account before 28 March 2024.
  • Lloyds Bank Offers £175 Exchange Bonus For Your Club Lloyds Account
  • Customers must switch to a Club Lloyds account by March 28
  • This is now the only exchange bonus on the market.

Lloyds Bank is offering £175 to those who switch current accounts with the cash pledged within three days of completion.

It is the only bank with a switching bonus as major banks pause incentives.

The new offer is aimed at new customers who switch their current account from another bank before March 28, when the offer ends.

Existing Lloyds customers (for example those with mortgages or savings accounts) can also apply if their current account is with a different bank and they are switching to Lloyds.

New deal: Lloyds Bank is offering £175 for customers who switch to a Club Lloyds account from their current account before 28 March 2024.

The change must be made through the official Current Account Change Service with applications available in the office, online or by telephone.

This process can take seven days to complete and the money arrives three days later.

There is a monthly fee of £3 to maintain a Club Lloyds account, or no fee if £2,000 or more is paid into the account each month.

Andrew Hagger, founder of MoneyComms, says: ‘Banks have hit the pause button on the switching incentive.

“Serial trading has been encouraged as a quick way to make money, and ‘grab the money and run’ has largely killed this market for now.”

For much of last year, NatWest and HSBC made deals worth £200 and got record numbers of people switching.

More people than ever switched their current account to a new bank by the end of 2023, figures from the Current Account Switching Service suggest, with NatWest and HSBC accounting for the majority of customer switches between October and December 2023.

For much of 2023, NatWest and HSBC held £200 swap deals

James Blower, founder of Savings Guru, believes the lack of exchange deals at the moment is simply due to timing.

He says: “There were three on offer, all of which have just come to an end, and I think this is just the first of another wave to come.”

“These bonuses come and go depending on when the larger banks want to push to attract more checking accounts.”

What’s on offer?

To get the Club Lloyds offer, you must upgrade to a Club Lloyds account, Club Lloyds Platinum account or Club Lloyds Silver account.

As well as cash, customers who switch to a Club Lloyds account will also have access to the Club Lloyds Monthly Saver, which pays a rate of 6.25 per cent and has a maximum monthly deposit of £400.

This is one of the top regular savings offers. If you deposited the maximum amount of £400 each month, you would earn £150 in interest over your 12-month term.

Skipton Building Society and First Direct have regular savings accounts that pay a rate of 7 per cent, but you can only deposit a maximum of £300 into the Skipton account and £200 into the First Direct account.

Savers who have received a switch offer since April 2020 to switch to any Lloyds Bank or Halifax current account will not be eligible for the Club Lloyds switch deal.

Customers earn 1.5% monthly credit interest on balances up to £3,999.99 and 3% between £4,000 and £5,000.

To qualify for this, accounts must be set up with two direct debits each month.

The account also comes with a 0.2 per cent discount on the initial mortgage rate when a mortgage is agreed with Lloyds Bank.

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