Barclays reintroduces £175 switch bonus

New current account customers could receive £175 from Barclays Bank, but is it worth switching?

Barclays Bank is the latest provider to offer a cash incentive for switching current accounts.

New customers who open a Barclays Bank Account or a Premier Current Account could receive an attractive bonus of £175, as long as they meet all the necessary terms of the offer.

You won’t be eligible for the bonus if you have an existing Barclays current account or if you’ve ever received a switching bonus from Barclays before.

Note that this switch incentive only applies to sole accounts, not joint accounts.

The offer runs from 8 July 2024 to 30 August 2024 and you need to complete the switch within 30 days.

How to get the bonus

To qualify for the bonus, you first need to download the Barclays mobile app.

You then need to use the app to switch to one of the eligible accounts via the Current Account Switch Service (CASS) before 30 August 2024.

This switch needs to include a minimum of two Direct Debits.

Once open, you need to pay at least £800 into your account to receive the £175 bonus.

If you switch to a Premier Current Account and you meet the above requirements, you should receive your £175 bonus within 28 days.

Bear in mind that, to open a Premier Current Account, you need to pay in a gross annual income of £75,000 or more or have at least £100,000 in Barclays savings and/or investments.

However, if you open a Barclays Bank Account, you need to complete another step first.

When signing up for your account, you also need to sign up for the bank’s Blue Rewards scheme. This service costs £5 per month and offers a range of perks such as an Apple TV+ subscription, up to 15% cashback on selected brands and access to Barclays’ top savings rates.

But, in the terms of the offer, it doesn’t say that you need to continue to use the Blue Rewards scheme once you receive the £175 bonus. So, if you don’t think the benefits it offers justifies the monthly fee, you should be able to cancel it.

Consider other features

While a cash incentive could tempt you to change current accounts, make sure you check the terms of the offer and the account to make sure it suits your requirements.

It’s worth considering other features of an account, as well as the switching offer, to help you decide whether it’s worth switching accounts.

“Those customers looking at either the Premier Current Account or Bank Account can get the switching cashback, but there are other benefits which customers can add on,” commented Rachel Springall, Finance Expert at Moneyfactscompare.co.uk.

“Barclays Bank offers pack add-ons, such as their Tech Pack, Travel Pack or Breakdown Cover Pack, each focusing on different areas of cover. However, each pack comes at a cost, so its important customers are aware of these, such as the Travel Plus Pack which would cost £270 over 12 months,” she explained.

Of course, if you just want a straightforward account, you don’t need to include these add-ons.

If you do decide to add a package to your bank account, such as insurance, make sure you check if you already have cover so you don’t end up paying twice for the same protection.

Alternative switching offers

With switching offers from The Co-operative Bank and Nationwide ending recently, Barclays is now one of a handful of banks to offer a cash incentive for switching current accounts.

Lloyds Bank and first direct also offer a £175 bonus when you switch to one of their eligible current accounts.

Unlike Barclays, you don’t need to pay a monthly fee or open a premium account to access the bonus from first direct.

To receive the £175 bonus from Lloyds Bank, you need to switch to its Club Lloyds, Club Lloyds Silver or Club Lloyds Platinum account, all of which charge a monthly fee.

However, you won’t need to pay the £3 monthly fee on the Club Lloyds account if you pay in £2,000 or more each month.

The Lloyds Bank switching deal ends on 30 July 2024 but first direct doesn’t specify an end date for its offer.

By switching your current account to any of the above banks, you can also access savings accounts that are only available to their customers. These can pay competitive rates, but it’s still worth comparing them to other savings accounts on the market to see if there are other options that could pay an even higher rate.