Nationwide revives £175 switching bonus to lure current-account customers

Nationwide Building Society said it is reviving its switching incentive, offering £175 to new customers who move to one of its current accounts through the Current Account Switch Service. Eligible products include FlexPlus, FlexDirect or FlexAccount, and the cash is paid within 10 days of the switch. The FlexDirect option also comes with 1% cashback on debit-card purchases for 12 months, amplifying the deal for those who qualify. The program marks Nationwide’s latest push to grow its current-account base as competition among UK lenders intensifies for switching customers. The offer is available to new customers who open a Nationwide account on or after 18 September 2025 and complete the switch via the Current Account Switch Service.

Nationwide has a broad footprint in the UK banking landscape with about 17 million members. The mutual has already experimented with customer rewards in 2025, including a May launch of a £100 Fairer Share payment for customers who hold a qualifying current account and either £100 in Nationwide Savings or a mortgage balance. The bank’s switching incentive follows a pattern in which Nation-wide and other lenders seek to convert customers through cash incentives, while offering value-added benefits such as higher yields on certain accounts or cashback on everyday spending. Nationwide’s broader strategy reflects ongoing market dynamics as banks contend for current-account growth from a shifting pool of customers seeking better terms or improved service.

To qualify for the £175 bonus, customers must complete a full switch to one of Nationwide’s eligible accounts through the Current Account Switch Service. The new account must be opened using Nationwide’s website, internet banking platform, or mobile app, and the switch must be requested as part of the application. The program requires at least two active direct debits to transfer to the new account, and other automatic payments such as standing orders do not count toward the requirement. In addition, customers must deposit at least £1,000 and make one debit-card payment within 31 days of opening the new account. The switching incentive applies to new customers who open an account on or after 18 September 2025.

The rules include several transition-related caveats. If a customer previously opened a sole or joint account and later seeks the same type of account again, eligibility for the bonus may be affected. However, if a customer previously opened a sole account and now opens a joint account (or vice versa), they may still qualify for the deal. Existing customers can also switch a current account they hold with another provider to an existing Nationwide account via Nationwide’s internet banking. The switch must be completed within 28 days of it being requested, a cadence that aligns with typical switching service timelines used by UK lenders.

The £175 bonus intensifies Nationwide’s appeal for potential switchers, particularly given the competitive landscape. NatWest has also offered £175 to customers who switch via the Current Account Switch Service, with eligibility tied to opening a NatWest Select, Reward, Premier Select, or Premier Reward account, depositing £1,250, and logging into the mobile app within 60 days. Lloyds has taken a more aggressive stance, offering £200 to customers who switch to Club Lloyds or Lloyds Premier accounts, though the eligibility criteria are stricter. First Direct likewise offers £175 for switches completed through the Current Account Switch Service, and the Co-operative Bank has a tiered bonus of up to £150 for new customers moving their current accounts.

Market data for early 2025 shows continued churn as banks press to win switching customers. Nationwide posted a quarterly net switching gain of 55,578 between January and March 2025, according to data from the Current Account Switch Service, which is reported three months in arrears. Nationwide was the first bank or building society to surpass that quarterly figure during the period, highlighting its ongoing competitiveness in the swap of current-account customers. The Current Account Switch Service, launched in 2013, remains a key channel for households seeking to compare and move accounts across the sector. Analysts note that such incentives can influence consumer behavior, particularly as households reassess banking relationships amid broader economic pressures.

As switching deals proliferate, observers emphasize that customers should assess total value beyond the immediate cash bonus. The required deposits, direct-debit transfers, and time-bound activation conditions can affect the net benefit of switching. More broadly, the competitive landscape signals banks’ intent to retain or attract customers by pairing cash incentives with account features such as interest on balances, card rewards, overdraft terms, and customer service considerations. Nationwide’s current campaign, with its mix of cash and a year-long cashback promise on FlexDirect, illustrates how lenders bend traditional incentives to capture value from new account holders in a mature market.