NatWest raises switching incentive to £175 as banks ramp up cash offers

NatWest has launched a limited-time offer paying new customers £175 to switch their current account using the Current Account Switch Service, intensifying a renewed battle among UK banks to lure account holders with cash incentives.

The bank said customers who open a NatWest Select, Reward, Premier Select or Premier Reward account, pay in at least £1,250 and log into the mobile app within 60 days of opening will qualify. The switching payment is promised within 30 days of the switch completing. The offer excludes customers switching from Royal Bank of Scotland or Ulster Bank accounts, which sit in the same group as NatWest.

NatWest’s Reward account also carries an additional rewards structure: for a £2 monthly fee customers can earn the equivalent of £4 a month if they have two or more direct debits of at least £2 set up, plus £1 a month for logging into the app, the bank said. The £175 switching payment is described by NatWest as a limited-time promotion and may be withdrawn at short notice.

The new NatWest offer follows a rival announcement from Lloyds, which is paying customers up to £200 to switch. Lloyds’ highest bonus applies to Club Lloyds and Lloyds Premier accounts but comes with more stringent conditions. Club Lloyds customers typically need to pay in £2,000 per month or face a £5 monthly fee, while Lloyds Premier customers must have savings or investments of £100,000 or pay in £5,000 monthly — or otherwise face a £15 monthly charge. Lloyds requires customers to transfer three active direct debits to qualify; standing orders and recurring card payments do not count towards the direct-debit requirement. The bank says it will pay eligible bonuses within ten working days.

First Direct and the Co-op have also been offering switching incentives. First Direct is matching NatWest’s cash figure with a £175 payment for customers who switch using the Current Account Switch Service, provided they move two direct debits and pay in at least £1,000 within 30 days; the bonus is paid by the 20th of the month following the month in which eligibility criteria are met. The Co-op is offering up to £150: new customers can receive £100 within seven days if they deposit £1,000 or more, set up two or more active direct debits, make ten or more card transactions and register for the bank’s online or mobile banking; an additional £25 per month for three months — totalling £75 — can be paid for continued activity that meets specified criteria.

Banks have increased cash switching incentives in recent years as customer acquisition has become more competitive and as they seek to grow primary current-account relationships, which can lead to cross-selling opportunities for mortgages, savings and investment products. The Current Account Switch Service, operated by Pay.UK, guarantees switched payments and standing orders move to the new account within seven working days, which providers typically require to be eligible for bonuses.

Analysts and consumer groups have previously cautioned customers to read the small print on switching deals. Conditions often require specific levels of monthly pay-in, active direct debits, a set number of transactions, or maintaining balances to avoid fees, and some offers are restricted to particular account tiers with minimum wealth or income thresholds.

Industry observers said the latest flurry of promotions reflects banks’ push to expand customer bases as deposits become a strategic focus amid economic uncertainty and competition from fintechs. Switching bonuses can be attractive for consumers but they vary in stringency and the overall value depends on longer-term account fees and benefits.

Consumers considering a move should compare the headline cash payment alongside the account’s ongoing costs, eligibility criteria and whether they can satisfy any required pay-in and direct-debit conditions within the promotional timeframes. Offers are typically time-limited and subject to terms and conditions set by each bank.

All banks cited payment timetables and eligibility rules with their offers. Customers are advised to consult their chosen bank’s published terms and the Current Account Switch Service rules before initiating a move to ensure they meet the criteria for any advertised cash reward.