This is the highest amount available for anyone looking to switch, both new and existing customers, and has increased from £125.

It comes as a raft of banks and building societies are giving away cash incentives to those who switch their current accounts.

To qualify for the £200, customers must use the Current Account Switch Service (CASS). This is an automatic service which switches someone’s current account, along with any existing payments set up.

It can be opened online or via the Nationwide mobile app and requires customers to transfer a minimum of two direct debits to the new account.

The building society also offers current account customers the option to sign up to a savings account, the Flex Instant Saver, which is increasing the rate it pays to 2% for 12 months from Wednesday 5 October.

New and existing Nationwide customers can benefit

The offer is open to anyone switching to one of Nationwide’s current accounts, even those who are already members of the society.

These include the FlexPlus account, a packaged account (£13 a month fee) with benefits such as worldwide family travel insurance and UK and European breakdown cover, as well as the free FlexDirect and FlexAccount.

Members who already hold an account with the building society are also able to benefit if they switch to one of its current accounts.

The only type of switch which wouldn’t benefit from the £200 would be an internal switch, from one Nationwide current account to another.

Competition for switching perks

TSB has today launched a switch deal, offering customers £180 for moving their everyday banking to its
Spend & Save or Spend & Save Plus (£3 a month) current account by 31 October. However, it is split between two payments; one of £125 and the second of £55.

Applications must be made through MoneySuperMarket or MoneySavingExpert and it must be made via CASS. Further, at least two direct debits need to be set up and customers need to use their debit card by 14 November to have £125 paid into the account by 16 December 2022.

A further £55 will be paid into the accounts by 30 June 2023 if the account is kept open, and each month customers must pay in at least £500, make five debit card payments and two direct debit payments.

Spend & Save allows customers to receive £5 a month cashback for the first six months if they make 30 debit card payments a month. Spend & Save Plus offers the same cashback but it is not restricted to six months.  It also offers Savings Pots, an easy access account with an interest rate of 1.52% AER. 

Several banks have recently increased the amount they pay to those switching their current account.

Previously the highest amount available was £175, offered by First Direct, NatWest, and Santander for those switching their current account.

The banks seem to be responding to the current economic crisis by offering these welcome bonuses to new customers.

Inflation was 9.9% for August, a slight dip from July’s rate of 10.1%, and interest rates are currently at 2.25%, though they are expected to rise further, pushing up the cost of borrowing.