New £175 bank account switching bonus launches: how does it compare?

Nationwide has rolled out a series of new perks, including a £175 cash incentive for switching bank accounts.

The building society is also launching a new scheme that pays 1% cashback on debit card spending for customers with a FlexDirect account. 

Meanwhile, Co-operative Bank has also launched a new 'Switch and Stay' offer this week worth £150 for new and existing customers. 

Before switching your bank account, it's a good idea to check how your potential new provider stacks up for customer service, which is where Which? can help. 

Read on to find out how to claim the latest switch incentives from where Nationwide ranks as a banking provider. 

If you're thinking of switching to any of the accounts mentioned in this article, make sure you refer to the particular terms and conditions of the deal to make sure it's right for you.

How to get £175 for switching your bank account

Nationwide has launched a new switching incentive that pays £175 to new customers who open one of its three current accounts. These include: 

• FlexPlus:a packaged account with benefits including worldwide family travel insurance, mobile phone insurance, UK and European breakdown cover and commission-free usage abroad for £13 per month. The monthly fee will rise to £18 per month from December. 
• FlexDirect: an online account paying 5% AER credit interest and offering 1% cashback on debit card spending.
• FlexAccount: an everyday bank account where customers can bank online and in branch for no fee. 

You’ll need to use the Current Account Switch Service to qualify for the bonus. The service automatically moves over any direct debits and closes your old account. 

You'll need to switch over a minimum of two active direct debits, deposit £1,000 and make one debit payment within 31 days. 

Once these criteria has been met, you'll be paid £175 within 10 days. 

Existing Nationwide customers can benefit from this deal, but you’ll need to be switching from a current account you hold with another banking provider to an existing account you hold with Nationwide. 

There's no end date to the switching offer, but switching deals tend not to last for long, so it's worth taking action sooner rather than later.

• Find out more: Nationwide current account fee changes 

What's in the small print?

Your new account must be opened via Nationwide’s website or banking app, and the switch must be completed within 28 days of it being requested.

The £175 bonus is only available to applications started on or after 25 September.

Individual or joint accounts opened after 18 August 2021 that qualified for a previous incentive will not qualify for this incentive if the same type of account (sole/joint) is opened again. 

However, if you have previously opened a sole account and now open a joint account - or vice versa - you will qualify provided you meet all the other criteria.

• Find out more: how to switch your bank account

How does the deal compare?

There are two switching deals on the market right now: 

Co-operative Bank – £150

Co-Operative Bank will pay new and existing customers an initial £75 for switching their bank account. 

New customers must apply for a standard current account or Everyday Extra account. This is a packaged bank account that includes worldwide travel insurance, UK and European breakdown cover and mobile phone insurance for £15 per month. 

Existing customers must switch from an account with another banking provider into their existing Co-operative Bank account.

To be eligible for the offer you can't have benefitted from a switch incentive at The Co-Operative Bank since November 2022. 

You'll be paid £75 within 30 days of the switch completing if you: 

• deposit a minimum of £1,000 into the new account. This includes balances transferred as part of the switch.
• have 2 active Direct Debits.
• make a minimum of 10 debit card or digital wallet transactions 
• register for our online and/or mobile banking service
• set up the debit card in a digital wallet including Apple Pay, Samsung Wallet or Google Pay

To get paid £25 for three months (£75 total), each month you must: 

• deposit a minimum of £1,000 into the account
• have 2 active Direct Debits
• make a minimum of 10 debit card or digital wallet transactions

First Direct – £175

Which? Recommended Provider First Direct will pay £175 to new customers who open its 1st Account.

The account comes with no monthly fee and offers a £250 interest-free overdraft buffer. However, if you borrow more than £250, you'll pay 39.9% EAR. It offers fee-free spending abroad. 

You can also get access to a 7% AER regular saver account. To get the 7%, you'll need to put away between £25 and £300 each month for a fixed 12-month term.

Make your money go further

Find the best deals, avoid scams, and grow your savings with our expert guidance. From only £4.99 a month.

Join Which? Money

Cancel anytime.

Nationwide's new perks

As well as the switch incentive, Nationwide has announced several other perks.

Cashback for FlexDirect members

Customers who open a FlexDirect account and haven’t benefited from a previous FlexDirect incentive will get 1% cashback for the first 12 months on debit card spending. 

This is capped at £5 a month, so the most you could earn in the period would be £60. Some transactions are excluded from cashback, such as gambling and crypto transactions and ATM withdrawals.

Nationwide confirmed to Which? that the cashback will be paid into your current account monthly. 

• Find out more: best bank accounts for cashback

£50 overdraft buffer

From November, new and existing customers with a FlexPlus, FlexDirect or FlexAccount will get a £50 interest buffer. 

The building society said the new buffer is to support existing and new customers 'who occasionally dip into their overdraft'. 

This will reduce the representative APR to 38.2% from 39.9%. 

Currently, FlexDirect members get an introductory offer of a 12-month interest free overdraft, however Nationwide has confirmed this benefit is being replaced by cashback. 

Existing customers who already benefit from the deal will see no change, but that benefit won't be available to new customers.  

• Find out more: best bank accounts for overdrafts

Communications cards

Nationwide is also rolling out a new in-branch service  to support customers with communication difficulties.

The 'Speak Easy' initiative is a set of custom-made cards with pictures and phrases that customers can use as a communication tool to help interactions with staff. The cards could help with banking matters, including savings and payments, reporting a lost or stolen card and reporting a suspected fraud or scam.

It will be rolled out in Nationwide’s 605 branches.

• Find out more: Nationwide to roll out dementia clinics

Is Nationwide a good banking provider?

Nationwide achieved a customer score of 78% in our annual survey of the best banks and bank accounts 2024, coming fifth out of 21 providers

Customers rated it highly for its customer service, application process, online banking service and complaints handling procedure. Although it achieved excellent customer scores, its product scores were below average, preventing it from being a Which? Recommended Provider. However, it did become a Which? Eco Provider.

Nationwide is currently the provider with the most branches remaining open across the country, with 605 outlets still operating. The building society has pledged to not leave any town or city in which it is currently based until at least 2028.

• Find out more: best current account providers

Which? Money Podcast

Join us on our weekly audio show for the latest money news and personal finance hacks to help make you better off.

Listen now