Anyone who switches to either the TSB Spend & Save or Spend & Save Plus, which costs £3 a month, accounts will be paid £150 in cash.

They can also earn up to £60 in cashback in the first six months of opening the account.

It comes in the same week that Lloyds launched a new switching offer, paying £175 to new customers.

There are certain rules around the account switch with TSB which need to be followed for customers to be paid the cash.

The accounts will need to be opened between now and when the offer is withdrawn (which could happen at any time as a date has not been set for this). This can be done online, in a branch, or via the TSB mobile app.

They will then need to switch their current account to TSB using the Current Account Switch Service (CASS) before 31 October 2023.

At least two direct debits then need to be set up and the customer will need to use their debit card at least once and log into the TSB mobile banking app to receive the £150 payment which will be paid by 30 November 2023.

Cashback of up to £90 available

On top of the £150 payment, cashback is also available to customers with these current accounts. Usually customers of the free Spend & Save account receive £5 cashback a month for six months, but this has been doubled to £10 a month in cashback for the first six months for new customers, totalling £50.

For those who open the Spend & Save Plus account, which has a £3 monthly fee, cashback of £5 is usually paid from when the account opens, to when it’s closed. But with the latest offer it will increase to £10 a month for the first six months.

Cashback is paid when customers make at least 20 debit card payments each month. There are exclusions here as direct debit payments and cash withdrawals, for example, aren’t allowed.

Both accounts also give customers access to an instant access savings account, paying a variable rate of 2.92% AER and there is also a monthly saver account, paying 5%, for 12 months.

How does it compare?

Cashback offers are a popular way for banks to lure in new customers, but they’re only worth it if the account suits the switcher.

The next-highest amount available for switchers comes from First Direct. It pays out £175 to new switchers and they can access the bank’s regular saver, which pays 7% interest on up to £300 a month.

Lloyd’s Bank also pays £175 and it throws in an extra benefit, such as 12 months of Disney+ or a magazine subscription. The account is £3 a month unless at least £2,000 is deposited into it each month.