Lloyds Bank to pay £200 switching bonus for new Club Lloyds or Lloyds Premier accounts

Lloyds Bank has launched a switching incentive that pays customers £200 who move their current account to either Club Lloyds or Lloyds Premier, the lender said on Friday.

Customers must use the Current Account Switch Service to transfer an account and meet eligibility requirements to receive the payment. New customers must have three active direct debits on the switched account — standing orders and recurring card payments do not qualify — and Lloyds said it will pay the £200 within ten working days of meeting the conditions. The bank has not set an end date for the offer and said it reserves the right to withdraw it at any time.

The switching bonus is available only to customers who move to Club Lloyds or Lloyds Premier accounts, both of which carry fees or deposit thresholds that can affect the net benefit of the offer. A basic Club Lloyds account carries a £5 monthly fee unless customers deposit at least £2,000 per month, while Lloyds Premier costs £15 per month but waives the fee for customers who pay in £5,000 per month or hold £100,000 of qualifying savings or investments. Lloyds also offers Club Lloyds Silver and Platinum tiers that add monthly charges of £11.50 and £22.50 respectively on top of the standard Club Lloyds fee, although the £5 fee can be waived by meeting the deposit threshold.

Lloyds described a suite of perks tied to the paid accounts. Basic Club Lloyds members receive 3% interest on cash balances up to £5,000 and 6.25% on funds placed in a Club Lloyds savings account; they can also choose a 12-month Disney+ subscription, Coffee Club and Gourmet Society membership, six cinema tickets at Odeon or Vue, or an annual magazine subscription. Lloyds Premier customers gain benefits that the bank values at about £100 per month, including a Bupa Family GP subscription service, up to £10 cashback per month and a 0.2 percentage-point reduction on residential mortgage and remortgage rates for qualifying customers.

The bank said customers who have received a switching bonus from Lloyds, Halifax or Bank of Scotland since April 2020 are not eligible for the new payment. Lloyds raised its switching reward to £200 after offering £185 in July. Rival First Direct is currently offering £175 to new customers who switch to its free current account, with payment within 45 days.

"We know switching bank can feel like a big step, so we're making it rewarding and easy," Vivek Khattri, Lloyds' director of personal current accounts and overdrafts, said in a statement. "Whether you're after cashback, lifestyle perks like Disney+, cinema tickets or smart travel booking - it's all simple to manage on the go in our app. Plus switching to Club Lloyds or Lloyds Premier now means you get £200 in your pocket."

Consumer advisers said switching incentives have become a standard tactic among UK banks to attract new current-account customers, with lenders balancing upfront payments against ongoing account fees and perks. For many customers, regular salary credits are the most practical way to meet deposit thresholds that waive monthly fees; others may find the monthly charges offset the short-term cash incentive.

Lloyds' terms also specify that only direct debits count toward the three-active-direct-debit requirement, excluding standing orders and recurring card debits. Customers considering the offer should check the fee-waiver thresholds and assess whether the account perks and interest rates align with their typical banking patterns before switching.