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Listen nowBarclays launches £175 switching bonus - but it won't last long
Find out how you can earn cash for setting up a new current account
Barclays is the latest bank to introduce a triple-figure switching bonus in an effort to entice new customers.
The £175 offer, which has a shelf life of just a few weeks, is open to those willing to jump through some hoops to set up a new current account.
Here, Which? takes a closer look at what you need to do to qualify for the cash and how the Barclays incentive weighs up against others.
How to get the £175 Barclays bonus
To qualify for the bonus you must open a Barclays Bank Account and join the Blue Rewards scheme or open a Premier Current Account, using the Barclays app. The account you open must be an individual account, not a joint one.
You need to complete a full switch via the Barclays app using the free Current Account Switch Service and bring across at least two active direct debits to the new current account.
Barclays says applications to switch must be made before Thursday 30 November and be completed within 30 days.
The £175 will land in customers' accounts within 28 working days.
What's in the small print?
To get the £175 bonus, you can't have held any Barclays current account since 1 November 2023.
You must not hold a Barclays Basic Bank Account, Barclays Bank Account, Barclays Bank Account with a Personal Overdraft, Barclays Bank Account with Blue Rewards, Platinum Bank Account, Mortgage Current Account, or a Premier Current Account.
You must be at least 18 years old and live in the UK.
What do the Barclays accounts offer?
The Barclays Bank Account is pretty no-frills. It has an optional arranged overdraft and money management tools to stay in control of your finances. However, adding the Blue Rewards Scheme spices things up.
The Blue Rewards Scheme costs £5 a month, but you will get £5 cashback if you successfully pay in two or more direct debits. The scheme is most rewarding if you have other Barclays products. You can get £3 a month cashback if you have a Barclays mortgage or £1 a month if you have a Barclays loan.
To get the scheme's benefits you need to pay in at least £800 to your linked Barclays account each month.
The Premier Current Account offers exclusive rates on mortgages and savings accounts but is only available for people who earn at least £75,000 a year paid into the account or have at least £100,000 in savings or investments with Barclays.
- Find out more: best bank accounts for cashback
Is Barclays a good current account provider?
Barclays achieved an overall score of 74% in our latest survey of customers making it one of the top 10-scoring banking providers.
Customers gave the bank three out of five stars for measures including the application process, online banking and customer service.
- Find out more: best banks 2023
How do other switching offers compare?
Nationwide, First Direct and Lloyds Bank are the other big-name banks currently offering cash incentives to draw in new current account holders.
Like Barclays, customers must use the Current Account Switch Service when shifting accounts.
Nationwide – £200
The UK's largest building society offers customers £200 to open one of three current accounts:
- FlexAccount - a standard everyday account where customers can bank online and in a branch for no fee.
- FlexDirect - an online account paying 5% credit interest on balances up to £1,500 for the first 12 months (you'll need to pay in at least £1,000 a month).
- FlexPlus - a packaged account costing £13 a month. Benefits include worldwide family travel insurance, mobile phone insurance for your whole family, vehicle breakdown cover across the UK and Europe, and commission-free debit card spending abroad.
At least two active direct debits must be transferred to the account of choice. The £200 bonus is paid within 10 days.
Nationwide current account holders are also exclusively eligible to apply for its regular savings account, with 8% AER. A maximum of £200 can be deposited monthly - if more than three withdrawals are made over the year, the interest drops to 2.15%.
First Direct – £175
A minimum of £1,000 must be paid into the new account within three months of opening the account.
The £175 bonus will be credited to your account within 28 days. You're not eligible for this offer if you've previously held a First Direct account or opened a HSBC current account on or after 1 January 2020.
The current account debit card offers fee-free for overseas spending.
The account also offers access to a First Direct regular saver, which pays 7% AER for 12 months. No withdrawals are allowed with the savings account, and you must deposit between £25 and £300 a month via standing order, up to a maximum of £3,600 for the year.
Lloyds Bank – £175.
Ending on Tuesday 14 November, the £175 bonus is available to new customers switching to a Club Lloyds account.
These come with the option to pick one lifestyle benefit a year. At the moment that includes a 12-month Disney+ subscription, six cinema tickets, an annual magazine subscription or an annual Coffee Club and Gourmet Society membership – giving you 25% off at Caffè Nero and 25% off your bill at thousands of restaurants.
You’ll also earn interest of 1.5% on balances up to £4,000 and 3% on balances between £4,000 and £5,000. You can only earn this if you have two direct debits coming out of the account every month.
There's a £3 monthly fee to maintain the account, which is removed if £2,000 or more is paid into the account each month.
Lloyds current account holders gain access to the Club Lloyds Regular Saver which pays a competitive 6.25% AER (fixed for 12 months) when you pay in between £25 and £400 each month.
- Find out more: for a comprehensive guide on how to shift your money and direct debits, check out our step-by-step guide on how to switch bank accounts
