Lloyds Bank offers £200 switching bonus for Club Lloyds and Lloyds Premier accounts
The bank will pay £200 to eligible customers who switch via the Current Account Switch Service, but account fees and qualifying requirements mean savers should weigh the costs and perks.
Lloyds Bank has launched a switching incentive that will pay new and switching customers £200 when they move their current account to either Club Lloyds or Lloyds Premier.
The reward is the largest current switching bonus on the market, the bank said, but customers must meet a series of eligibility rules. Existing Lloyds customers must transfer their current account using the Current Account Switch Service from 16 September, while new customers must set up and transfer three active direct debits to qualify. Standing orders and recurring card payments do not count towards the direct-debit requirement.
Lloyds said it will pay the cash bonus within ten working days of customers meeting the eligibility requirements. The bank has not given an end date for the offer and warned it could be withdrawn at any time. Customers who have received a switching bonus from Lloyds, Halifax or Bank of Scotland since April 2020 are ineligible.
The £200 payment applies only to Club Lloyds and Lloyds Premier accounts. Club Lloyds carries a £5 monthly fee unless the account holder pays in at least £2,000 each month, a threshold most customers would meet by having salary paid into the account. Club Lloyds Silver and Platinum tiers add monthly charges of £11.50 and £22.50 respectively on top of the base Club Lloyds fee, though the fees can be waived if the deposit threshold is met. Lloyds Premier has a £15 monthly fee that is waived if the account holder pays in £5,000 per month or holds £100,000 of qualifying savings or investments.
Paid accounts include a package of perks that the bank says deliver value to account holders. Club Lloyds offers three per cent interest on cash balances up to £5,000 and 6.25 per cent interest on funds in a Club Lloyds savings account, together with a choice of a 12-month Disney+ subscription, a Coffee Club and Gourmet Society membership offering 25 per cent off selected retailers, six cinema tickets at selected chains, or an annual magazine subscription. Lloyds says Lloyds Premier customers receive perks worth about £100 per month, including a Bupa Family GP subscription, cashback of up to £10 per month and a 0.2 percentage point discount on residential new mortgage and remortgage rates.
The bank increased its switching reward from £185, which it offered in July. Other banks have also been running switching incentives: First Direct is offering a £175 bonus to switch to its free current account, which the bank says is paid within 45 days of account opening.
Vivek Khattri, Lloyds's director for personal current accounts and overdrafts, said the offer aimed to make switching both "rewarding and easy," and highlighted lifestyle and financial benefits that customers can manage through the bank's app.
Consumers weighing the offer should calculate whether monthly fees would be offset by the £200 bonus and the accounts' ongoing perks and interest rates. The bank's eligibility conditions, including the requirement for three active direct debits for new customers and the exclusion of previous switching-bonus recipients since April 2020, will affect who can claim the payment.
Lloyds cautioned customers that the offer can be withdrawn at any time. The switching service typically guarantees that scheduled payments move with the account, but customers were reminded to check qualifying conditions carefully before initiating a transfer.