From today (1 February), customers switching to a TSB current account – fee-free Spend & Save or the £3 a month Spend & Save Plus – will receive up to £200 split in two instalments.

This includes £125 cashback if applying by 3 March and using the Current Account Switch Service (CASS) to move your existing banking to it by 24 March.

To be eligible, customers need to do the following by 24 March:

• Set up at least two direct debits
• Use your debit card at least once
• Log into internet banking or the TSB mobile banking app.

Once these conditions have been met, the £125 will be paid into the account by 21 April 2023.

To get the remaining £75, you’ll need to keep your account open and each month between 1 April and 30 September 2023:

• Pay in at least £500
• Make five debit card payments (excludes cash withdrawals and bill payments made in a TSB branch)
• Have a minimum of two active direct debits.

If you’ve switched to a TSB account via CASS since 1 October 2022, you won’t be eligible for the offer.

TSB confirmed the cashback is only paid once, so just one bonus will be paid even if customers open an individual and a joint account.

Savings rates up

A further incentive for new switchers to the standard Spend & Save account is that you can earn £5 a month for the first six months when using a debit card 20 times a month.

Usually, customers need to use their debit card 30 times, but TSB has reduced this threshold both for new and existing customers of both current accounts.

For those switching to the premium £3 a month Spend & Save Plus current account, the direct debit linked cashback is available on an ongoing basis.

TSB has also increased the interest rates offered on Savings Pots to 2.52% AER variable, while the rate on its Monthly Saver has also risen to 5% gross/AER, fixed for 12 months.

Ian Ramsden, TSB’s products director, said: “Our current accounts provide convenient ways to help you manage your money better and this offer, alongside our increased savings rates, is another great reason to make the switch.”

Switching cashback

Just last week, Santander launched a £200 cash bonus for new switchers to its range of current accounts. Meanwhile, First Direct is the only other bank to offer a switch incentive at a lesser £175.