Earn a summer cash bonus of £175 by switching your current account to NatWest

The latest bank to launch a current account switch incentive, NatWest is offering £175 in cash to eligible customers.

Competition in the current account switching market is hotting up after NatWest and its sister brand, Royal Bank of Scotland (RBS), launched a new switching bonus yesterday (24 June).

Customers who switch their main current account to an eligible account, including the NatWest Select Account or Reward Account, or the RBS Select Account or Reward Account, could get an initial cash bonus of £125.

To receive this, they simply need to switch their existing bank account to an eligible account using the Current Account Switch Service (CASS) and log in to the bank’s mobile app. They also need to pay in at least £1,250 (over one or more payments), which needs to remain in their account for a minimum of 24 hours.

Assuming they meet these requirements within 60 days of switching (and continue to keep their account open), customers should receive the £125 payment within 30 days.

NatWest and RBS will also offer a further £50 cash bonus to customers who open a Digital Regular Saver within 60 days of switching their current account. The bank will pay this sum into your savings account within 30 days of completing this stage.

“A free cashback incentive can be very enticing, particularly during the summer when it is hard to stretch a budget, such as to cover the cost of a holiday,” Rachel Springall, Finance Expert at Moneyfactscompare.co.uk commented.

“However, to maximise the perks of the NatWest cashback offer, consumers must understand the eligibility criteria and be diligent with how they save and spend,” she noted.

While there’s no end date specified on this switching offer, Springall cautions that they “don’t always stick around for too long”. However, she adds that “consumers must not feel pressured to switch if they have not carefully compared the different packages out there”.

Note that, to be eligible for this offer, you can’t switch from an account that’s already with NatWest, RBS or Ulster Bank and you can’t have received a switching offer from any of these providers in the past.

Topping up your bonus

After the initial £175 switching bonus, certain customers could earn an additional £100 or more.

Part of this would come from the interest paid on the Digital Regular Saver, which offers an interest rate of 5.5% AER on balances up to £5,000. This regular savings account allows you to deposit up to £150 each month, with the £50 that’s paid as part of the switching offer not counting towards this limit.

If you save the maximum of £150 each month (and don’t make any withdrawals), you can earn £53.53 in interest over one year. And, by continuing to deposit in the account and build up your savings, you can earn even more interest over the following years.

Customers who open a NatWest or RBS Reward Account can also earn additional cash bonuses (in the form of Rewards) each month. For example, they could receive £4 a month if they have two or more Direct Debits of at least £2, and an additional £1 simply by logging into the mobile app.

This means customers could earn up to £60 in Rewards over one year, although it’s important to bear in mind this Reward Account comes with a £2 monthly fee.

Moreover, you could earn at least 1% cashback in Rewards by using your NatWest or RBS debit card at their partner retailers.

These Rewards can be converted into money that’s paid into your account, exchanged for e-gift cards to spend at selected retailers or donated to charity.

How competitive is this switch offer?

With a cash bonus of £175, the switching incentive from NatWest compares well against other providers, including first direct which also offers a £175 bonus on its 1st Account.

However, it’s possible to earn £180 in cash with Santander’s recently launched switch incentive and an even higher £200 by switching to an eligible account from Nationwide BS.

Understandably, many people will focus on the switch incentives offered by a provider if they’re considering moving their bank account elsewhere. But, with so many types of account available, it’s crucial to look at all the terms and features to ensure you choose one that best meets your requirements.

“There is not always a ‘one size fits all’ approach when it comes to current accounts, as most providers tailor their range to suit different needs. There will be high interest current accounts, those with a competitive overdraft tariff, as well as packaged accounts with integrated insurance plans or even accounts that reward savers or spenders,” Springall pointed out.