You are here: Home - Saving-Banking - News -

Banks rein in current account cash sweeteners

Written by: Paloma Kubiak
Free cash rewards offered to customers switching current accounts are being scaled back, research suggests.

In the past six months, current account cash incentives have dwindled, making it far less rewarding for customers to switch to a better deal.

As of yesterday, Halifax Reward Current Account customers will receive a £2 per month bonus, down from £3 a month. This is the second change it’s made to the reward payment after cutting the rate from £5 to £3 in February 2017. Just a year ago, it offered switchers £125 to switch current accounts on top of the £3 a month reward, meaning savers could net £161 in total.

But today, switchers to Halifax will receive £99 in their first year – £62 less.

NatWest/RBS also removed its £100 switcher incentive in July while customer service led First Direct scrapped its cash switch deal in favour of tech and travel vouchers.

TSB also removed its reward payment of up to £10 a month in June.

But according to data site Moneyfacts, which compiled the research, the latest cut from Halifax may make other providers rethink their incentives in an attempt to attract those savers looking to switch.

Barclays has recently brought back its double rewards for switchers on the Blue Rewards, which was previously withdrawn in June.

The table below lists all the changes:

‘Act fast on good switching deals’

Rachel Springall, finance expert at Moneyfacts, said there are other ways for consumers to get some free cash out of their bank account, away from current account switching sweeteners.

“For instance, The Co-operative Bank pays £4 net per month when customers meet certain eligibility criteria, plus up to £1.50 per month when using their debit card, which totals £66 in the first year.

“It’s clear to see that the free cash cutdown isn’t an anomaly, with it happening across various brands over the last six-month period, and it’s possible that providers will continue to rein in their rewards as we enter a period of economic uncertainty.

“While one provider has gone the other way recently, there’s no telling whether this is the start of a more positive trend in the market or just a one-off. With this in mind, any customers who have yet to take advantage of switching incentives may want to act quickly, before more cuts take place.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Big flu jab price hikes this winter: Where’s cheapest if you can’t get a free vaccine?

Pharmacies, supermarkets and health retailers are starting to offer flu jabs ahead of the winter season, but t...

Is now the time to fix your energy deal?

Fixed energy tariffs all but disappeared during the energy crisis. But now they are back with an increasing nu...

Everything you need to know about the pension triple lock

Retirees are braced to receive another bumper state pension pay rise next year due to the triple lock mechanis...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

The best student bank accounts in 2023: Cash offers, tastecards and 0% overdrafts

A number of banks are luring in new student customers with cold hard cash this year – while others are compe...

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Money Tips of the Week