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RBS launches £150 switch offer: how does it stack up?

Joanna Faith
Written By:
Joanna Faith

RBS is the latest bank to launch a cashback offer for switchers as competition for current account customers heats up.

The bank is offering £150 to new and existing customers who switch their main bank account to a Select, Reward, Reward Silver, Reward Platinum or Reward Black account before 8 March 2019.

Switchers to RBS Reward accounts, which come with monthly fees of between £2 and £20, get 2% cashback on household bills. This equates to £83 a year on average based on monthly bills of £345.

Customers switching to Reward Silver, Platinum or Black accounts benefit from no foreign purchase fees on debit card purchases made outside of the UK and up to 40% off cinema tickets.

Reward Platinum and Black customers also get personal car breakdown cover as well as mobile phone and travel cover.

To get the £150, switchers must use the Current Account Switch Service and close their existing account with their current provider. They must also deposit at least £1,500 into account and log in online or through the mobile app before 12 April.

Other cashback deals

HSBC Advance Account also offers £150. It’s a free account but customers must pay in at least £1,750 per month or £10,500 over six months and have at least two direct debits or standing orders.

Natwest’s Select Account also pays switchers £150. Again, this a free account and to qualify for the cashback you need switch before 15 February 2019. You must also deposit at least £1,500 and log in online or via the app by 22 March.

First Direct’s 1st Account offers £100 if you deposit at least £1,000 within three months of opening the account. The account is free, but you must pay in at least £1,000 every month or maintain an average monthly balance of £1,000 to avoid a £10 fine. You’ll also be eligible for a £250 interest-free overdraft.

Halifax’s Reward Current Account gives you £135 altogether but in two installments. You get £50 for switching and then £85 after six months so long as you’ve paid in at least £1,500 each month, opted for online banking and used your debit card to pay for something at least once.

M&S Bank’s Current Account offers £180 in gift cards but only until 30 January. So if you apply today, you’ll get a £100 gift card when you switch, then you’ll then get a £80 gift card if you pay in at least £1,250 a month and set up four active direct debits in the first year. You also must register for online banking within three months of opening the account and opt for online only statements.

A warning about cashback incentives

Switching banks for the cash perks is not a bad idea, especially at this time of year when many people’s wallets are still recovering from the festive season.

But cashback shouldn’t be the only consideration when moving bank account. You should check whether the new account pays any in-credit interest if that’s a priority for you.

You should also look into overdraft charges and fees. If you’re someone who regularly dips into your overdraft, you may find your new bank charges more for doing so. And these higher fees could end up wiping out any gains made from the cashback.

For the best accounts if you go overdrawn, click here.