UK banks are actively competing for new customers by offering cash incentives, and Five banks, including TSB, are offering a £200 Bonus to Customers just for switching. This offer could be a quick win for those looking to change banks in 2025.
Five Banks Including TSB are Offering £200 Bonus to Customers
In a bid to attract new account holders, five major UK banks are providing a one-off cash incentive of up to £200 to customers who switch their current account. With the cost of living still high, this offer presents an easy way to earn some extra money—provided you meet the switching conditions.
Which Banks Are Offering the £200 Bonus?
The current switching offers are available from these banks:
| Bank | Bonus Amount | Conditions | Payout Time |
|---|---|---|---|
| TSB | £200 | Switch + use debit card 5 times | Within 30 days |
| HSBC | £200 | Switch + pay in £1,500 | 20 working days |
| NatWest | £200 | Switch + log into app | By day 90 |
| First Direct | £175 | Switch + use debit card | Within 28 days |
| Lloyds Bank | £175 | Switch + 2 direct debits | By second month |
These offers are available for a limited time only and may close once a certain number of customers have claimed them.
How to Qualify for the Bonus
The exact criteria vary by bank, but most follow a similar structure:
- Use the Current Account Switch Service (CASS) to transfer your existing account
- Close your old account as part of the process
- Set up minimum payments or direct debits (varies per bank)
- Some banks require a minimum monthly deposit (typically £1,000–£1,500)
- You must be a new customer, not having held a current account with the same bank in the past 12 months
Meeting these terms ensures you receive the full bonus within the promised timeframe.
Why Are Banks Offering Cash to Switch?
Banks see switching incentives as a quick way to grow their customer base. Even with a £200 bonus, banks stand to benefit over time from
- Customers using overdraft facilities
- Interest from credit cards and loans
- Long-term account retention and upgrades
This is why many of these offers are targeted at people willing to switch fully, not just open an additional account.
Key Tips Before You Switch
If you’re considering switching, keep these points in mind:
- Check your direct debits – make sure they’re set up properly on your new account
- Review overdraft rates – some new accounts may have higher fees
- Monitor your bonus eligibility – set reminders to complete app logins or card usage
- Choose based on features – consider digital tools, branch access, and customer service
Switching banks doesn’t affect your credit score negatively unless you’re applying for credit simultaneously.
What Happens After You Switch?
Once you’ve switched using the CASS, all your incoming payments and direct debits are transferred over automatically. Most banks promise a seven-day switch, and any errors are covered by the Switch Guarantee.
Expect the following:
- Your old account is closed
- You receive confirmation by email or letter
- The bonus is paid into your new account within the stated window
- You can start using your account immediately for spending and payments
With five major banks including TSB now offering £200 for switching, there’s never been a better time to move your money. Just ensure you meet the conditions and act before the offers end.
Your awareness helps you make better financial and personal decisions—thanks for reading.
