Britons have been dealt a harsh blow as current account switching cash offers from major high street banks have “vanished” from the market.
Banks, including first direct, NatWest and Lloyds, have offered cash incentives to encourage new customers to take one of their current accounts.
During this recent period of deals, customers could potentially get up to £185 by simply getting a new current account with a bank.
This has coincided with the rise to the Bank of England base rate which has been passed onto savings accounts.
As such, bank customers have been shopping around for the best interest rates which often leads to them getting a new current account to access these hiked rates.
However, with savings interest rates falling, many of the current account switch deals are no longer available.
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Many current account switch deals have “vanished” from the market
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Here is a full list of the banks and building societies which have pulled their current account cash offers.
- First direct pulled its £175 free cash offer on April 22
- HSBC pulled its £100 free cash offer on April 10
- NatWest and Royal Bank of Scotland pulled its £200 free cash offer on April 5
- Santander pulled its £185 cash offer on April 5
- Lloyds pulled its £175 free cash offer in late March
- TSB pulled its £125 free cash offer in January
- Co-operative Bank pulled its £100 free cash offer in January.
- Several current account providers have pulled their free cash offers this month, including HSBC, NatWest, Santander and first direct.
Rachel Springall, finance Expert at Moneyfactscompare.co.uk, outlined why this is “disappointing” for many people across the UK.
She explained: “Consumers will find that the free switching cash perks offered by providers have vanished.
“These perks come and go at different times of the year, but it will be disappointing news for those who were hoping for a free cash boost when switching using the Current Account Switch Service (CASS).
“This should not deter switchers from comparing deals, as they could still find a better package if their current account is not working hard enough for them.”
However, the finance expert noted that there other incentives to convince customers to switch current accounts this year.
Springall added: “The best package will rely on an individual’s circumstances, so it’s wise to keep that in mind when comparing perks.”
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Santander is one of the banks which has offered these type of deals
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For example, Nationwide Building Society’s FlexDirect account offers a high interest rate of five per cent AER (4.89% gross a year) credit interest fixed for 12 months on balances up to £1,500.
However, this rate is reduced to one per cent after this period and no cashback is attached to it.
Furthermore, Santander’s Edge Up current account offers one per cent cashback on debit card spends at transport and grocery merchants which is capped at £15 per month.
The account also provides one per cent cashback on selected household bills, also up to £15 monthly.
