Cash incentives galore as banks fight for new current account customers

We may only be a couple of weeks into the New Year, but it’s clear that the desire from the banks to win a bigger share of the current account market is stronger than ever.

Whilst Santander increased the monthly fee on its 123 account from £2 to £5 last Monday, its rivals have been pulling out all the stops to attract new customers.

M&S Bank was first out of the blocks with a £100 M&S gift card up for grabs if you switched your banking, plus the offer of a further £10 per month credited to the gift card each month for the first 12 months as long as you pay in at least £1,000 per month and set up at least two direct debits.

This move has been followed by The Co-operative Bank offering its customers new monthly reward payments of £5.50 whilst Barclays is doubling its ‘Blue Rewards’ for switchers in January.

On the golden hello front, Halifax and TSB are offering £100, HSBC £120, First Direct £125 and Yorkshire and Clydesdale Bank £150, so there are plenty of options to choose from.

Whilst a financial sweetener may seem too good to turn down, it shouldn’t be the sole reason for choosing your next bank account.

Look at how you run your banking on a month to month basis and find an account that fits.

Current accounts offering high rates of credit interest are often most expensive for overdrafts, so be sure to understand the full picture before taking your custom elsewhere.

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