Many people are worried about a cost of living crunch this winter, with energy bills on the rise and inflation already running at a nine-year high in August. And with Christmas spending also on the horizon, some wallets will be under pressure.
One way people could give themselves a cash boost is to take advantage of one of the many current account switching offers that have recently been launched.
Among the deals, Royal Bank of Scotland (RBS) is offering £150 to new and existing customers who switch and stay. The limited time offer runs until November 18 2021.
Santander has also been offering £130 cashback to new and existing customers switching their current account to it. HSBC UK, meanwhile, has been offering £110 in cash plus an additional £30 to eat in using Uber Eats, or to eat out using the Dining Out Gift Card. Lloyds Bank has also been running a limited-time £100 cash-to-switch offer.
Current account switching offers often specify that customers need to use the Current Account Switch Service (Cass), which automatically moves their payments over from their old bank account, in order to be eligible. Those who aren’t keen to do this might be interested in another new offering.
JP Morgan Chase has launched a new digital bank brand in the UK. Its fee-free Chase current account combines money management features with cashback rewards on spending.
Features include small change round-ups on which people can earn 5% interest for 12 months. Customers’ spending on debit cards will be rounded up to the nearest £1 and the small change will be deposited into a separate account where it will earn interest at 5% for 12 months.
The current account’s rewards programme is also offering 1% cashback on eligible debit card spending for 12 months for items such as groceries, travel, meals, entertainment, fashion, homeware, electronics, as well as flights and holidays, subject to terms and conditions.
Crucially, Chase says people will receive the cashback rewards without needing to switch their banking provider, commit to a minimum account balance or set up direct debits.
While up-front cash perks can be tempting, Rachel Springall, a finance expert at Moneyfacts.co.uk, says it’s important to weigh up the overall charges on any account when considering switching.
“It’s great to see a rise in upfront cash offers to tempt banking customers to move away from their current account provider and switch, but its important consumers check the overall package of an account before they commit,” says Springall.
“Someone who may dip into their overdraft from time to time, may be better off choosing an account with an interest-free buffer, or lower rate than one with an enticing upfront perk, and many off the biggest brands charge around 40% on their arranged overdrafts.”