Savers looking to switch to a new provider can get some free cash payments and now is the time as they may become less generous.
Santander is currently offering £150, Lloyds Bank is paying a £200 cash incentive, NatWest has an £180 switch offer, while Nationwide will pay you £175 to switch.
But experts have warned these switch offers may not last for much longer or may not be so compelling going forward.
Ian Pagdin, senior lecturer in Banking, Risk Management, Investment and Wealth Management at Sheffield Business School, said: “It is possible that there may be more attractive offers than this although with the current falling trend of interest rates, this may limit the ‘generosity’ of the offers going forward into 2025.”
Suggesting what could be added to these offers to make them more appealing, he said: “Other perks to entice could include reduced or zero monthly fees and even cashback offers, and maybe retail vouchers.”
He also shared the view that it’s “very likely” these switching offers will continue as the current accout market is “very competitive” at present.
Turning to what people should think about when looking to switch, Mr Pagdin said you should focus on your individual needs and, if there are additional services or perks, will these in fact benefit you?”
He warned: “Cashback offers are often linked to overall spending and therefore might not be quite as attractive as you may think.
“Other potential possibilities are perks such as travel insurance, but if you don’t travel abroad then this may not be attractive to the individual.”
He added another caution that a “major consideration” you should always bear in mind is the quality of customer service the bank provides.
Liz Hunter, director at Money Expert, also shared some tips for things to think about when you are looking to switch.
She said to to check for exit fees from your current provider or penalties if you are withdrawing from a fixed term product, as this can wipe out any gains from switching to your new account.
Another key tip is to shop around so you have a good sense of the range of products available to you.
Ms Hunter said: “Don’t rush to switch to the first provider simply because of the benefits being offered and don’t just limit the search to traditional high street banks, as they may usually offer lower savings rates compared to newer, less established providers.
“Newer and online-only banks frequently provide more competitive rates as they have lower overheads and are more innovative than many high street banks, so it’s worth checking them out too to see if you can get a better deal.”
Another important check is to make sure the provider you are looking at is covered by the Financial Services Compensation Scheme, which means your savings will be protected up to £85,000 should the bank fail.
Ms Hunter added: “Beyond interest rates and benefits, other factors such as the bank’s reputation, customer service and how easy it is to manage your account should also be considered.”
