02 Oct 2024

You can now get £200 for switching your bank account

Lloyds Bank becomes latest provider to launch a switching incentive

Lloyds Bank has launched a £200 bonus for people who switch to its Club Lloyds account, which comes with a 'lifestyle benefit' such as Disney+ or a magazine subscription.

This new market-leading deal comes hot on the heels of switching offers from Nationwide (£175) and Co-operative Bank (£150).

Here, we explain how to get the switching bonus, reveal how Lloyds fares for customer service, and offer advice on how the deal compares to others on the market.

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.

What does the Club Lloyds account offer?

The £200 bonus is available to new customers switching to a Club Lloyds account. This includes the 'Classic' as well as 'Silver' (£11.50 a month) and 'Platinum' (£22.50 a month) packaged accounts.

The switching offer is available from today until 10 December 2024.

All Club Lloyds accounts come with the option to pick one lifestyle benefit a year. Options include a 12-month Disney+ subscription, six cinema tickets at Vue or Odeon, an annual magazine subscription or an annual Coffee Club and Gourmet Society membership. This gives you 25% off at Caffè Nero and 25% off your bill at thousands of restaurants.

You’ll earn interest of 1.50% AER on balances between £1 and £3,999.99 and 3% AER on balances between £4,000 and £5,000. You’ll only earn this if you have two direct debits coming out of the account every month.

You can also get access to the bank's 'Everyday Offers', which include cashback when shopping at certain retailers.

There’s a £3 fee for maintaining any of the Club Lloyds accounts (in addition to the packaged account fee), but it will be refunded each month if you pay in £2,000 or more.

Find out more: how to switch your bank account

What's in the small print?

You must use the Current Account Switch Service (CASS) and transfer at least three active direct debits from your old account.

Existing Lloyds Bank customers can qualify for the deal as long as they open a new Club Lloyds account and switch from a non-Lloyds bank account.

You'll receive the £200 cash bonus within three working days of your switch completing.

You won’t be eligible for the offer if:

you change your existing Lloyds Bank account to a Club Lloyds account
you’ve received a switching incentive from Lloyds Bank or Halifax since April 2020
you're switching to a joint account and one of the parties has already received a switching offer since April 2020
the bank you are switching from does not participate in the CASS.

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Is Lloyds Bank a good provider?

Lloyds Bank received a satisfaction score of 72% in our latest survey of the best banks, putting it joint 12th out of 21 providers.

Customers rated it very highly for its online banking service, customer service and how it deals with complaints.

Lloyds received middling scores for in-branch service, mobile banking, telephone banking, and calling customer service.

Find out more: best banks and bank accounts 2024

How the deal compares

There are three other switching offers available right now from First Direct, Nationwide and The Co-operative Bank.

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. You'll also get fee-free spending abroad.

First Direct also provides 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.

You'll need to move over at least two direct debits or standing orders as part of the switch, deposit £1,000 and make at least five card payments.

Nationwide – £175

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

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

Find out more: Nationwide launches £175 deal

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.

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 two active Direct Debits
make a minimum of 10 debit card or digital wallet transactions
set up the debit card in a digital wallet, including Apple Pay, Samsung Wallet or Google Pay.

You can then earn £25 a month for up to three months just by actively using your account.