A £500 gift or a free toothbrush: is it worth switching bank accounts?
British banks are escalating a "switching war" for current account customers, offering cash bonuses of up to £500 or freebies to entice people to move their accounts. This matters for consumers because, amid ongoing cost of living pressures, these incentives can provide a genuine financial boost, but many come with significant conditions attached, meaning shoppers need to weigh the fine print rather than simply chasing the headline figure.
Santander offers £240 for switching to its fee-free Everyday account, requiring a £1,500 deposit, two direct debits and a funded Regular Saver, while HSBC offers £220 and its First Direct brand £175, both with similar direct debit and spending conditions. Nationwide offers £175 and the Co-operative Bank £200 (ending 7 September), whereas NatWest and HSBC's Premier accounts both offer £500 to high earners meeting strict income, savings or mortgage thresholds. Starling has instead opted to offer a £105 electric toothbrush to new personal account customers who switch before 11 October. Most deals require using the industry's Current Account Switch Service (Cass), and experts note there is no one-size-fits-all account, urging customers not to feel rushed and to check ongoing value, particularly with fee-charging packaged accounts.
- Banks are offering up to £500 or gifts to win switching customers.
- NatWest and HSBC offer £500 bonuses, but only to high earners.
- Deals carry conditions like minimum deposits and direct debits.
New here? Start with this
A current account is used to receive income, pay bills and manage everyday spending. In Britain, people can move these payments and their account balance to another bank through the Current Account Switch Service, which handles the transfer.
Banks compete for customers with different account features and incentives, from cash offers to gifts. Some offers require customers to meet conditions such as paying in a certain amount, setting up direct debits or qualifying for a premium account.
Switching can bring an immediate reward, but the account’s fees, services and eligibility rules affect its overall value. Comparing those details can help customers judge whether an offer suits how they use their account.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Switching can be a practical way to earn a meaningful cash bonus or receive a useful free item, especially when household budgets are under pressure. If the account suits someone’s needs and they can meet the conditions without changing their spending, the incentive may add value, while the switching service can make moving simpler.
The case against
The headline offer may not represent good value if qualifying requires extra deposits, direct debits, spending or financial thresholds that do not suit the customer. Focusing on a one-off reward can also distract from fees, account features and longer-term service, so taking time to compare options may be wiser than switching for a promotion alone.