ROYAL Bank of Scotland (RBS) will pay you £175 to switch bank accounts to it – and existing customers can the perk too.
The switching incentive is open to customers who make RBS' basic Select account, or the premium Reward, Reward Silver, Platinum or Black account, their main current account.
Sister bank NatWest launched the same switching incentive earlier this month, while HSBC is also offering newbies the same amount of cash to switch.
Unlike HSBC, which asks customers to pay in a minimum £1,500 a month to qualify, NatWest and RBS don't require customers to regularly pay into the account to get the bonus.
But you will need to transfer £1,500 into the account in the first month of opening it and log into online or mobile banking before May 24 2020.
In addition, you need to make the switch before April 20, 2020 – and only those that have registered through the Current Account Switching Service will be able to benefit from the cash boost.
What other switching offers are available?
RBS isn't the only bank that will pay you to switch accounts. Here are all of the offers currently available to those who are considering swapping their main bank accounts:
HSBC: New customers can also get £175 by switching to HSBC, but you'll need to pay in £1,750 each month to meet the criteria – apply here.
If the conditions are too steep, HSBC also offers a £75 switch bonus with no minimum monthly pay in.
NatWest: New and existing customers can also get £175 for switching current accounts – apply here.
You'll need to pay in a one-off £1,500 and log on to online or mobile banking before May 24.
First Direct: New customers can get £100 for switching, and there is a linked 2.75 per cent regular saver account – apply here.
You need to pay in at least £1,000 in the first three months after you open the account.
Nationwide: You can get £100 if a friend refers you to Nationwide or the same bonus if you refer them – apply here.
Make sure your friend isn't planning on moving on though, Nationwide say it may reclaim the bonus if someone closes their account without good reason within three months.
You will be able to select the switching service as an option once you've opened the account.
It does all of the hard work for you, including contacting and closing your old bank, and moving all of your money and payments into the new account.
If you do all of this, you'll then automatically be paid £175 straight into your bank account by June 19, 2020.
Reward account customers can actually earn the most – up to £211 – in the first year of swapping bank accounts.
This is because RBS pays Reward account customers £4 a month if they have two direct debts set-up, plus an extra £1 a month just for logging onto online banking.
How to switch bank accounts?
NOT sure what switching could do for you? Here's what you need to know:
- Switching is easy. Under the switching service, swapping banks should take seven working days. That includes all your payments, direct debits and standing orders being moved too. Just open your new account and then ask your new provider to close your old account using the switch service.
- Make sure you are eligible. Most accounts have certain requirements, such as paying in a minimum amount of cash each month.
- Watch your overdraft. Check your new bank will offer you the same limit — and does not have higher costs for using it.
Customers who meet these requirements over the first year will earn an extra £36, once the £2 a month charge for the account has been deducted.
Normally, these kinds of incentive are open only to new customers but RBS is opening it up to existing ones too.
Those who already have an account will need to have an account elsewhere that they can carry out the switch with though.
You'll also need to open a different account to the one that you already have with RBS.
For example, if you're already a Select account holder, you'll need to open one of the premium accounts.
But these come with their own fees – it costs £10 a month for the Reward Silver account, £20 for the Platinum account and £30 for the Black account.
The switching process is the same as it is for new customers so you'll be on track for the bonus if you follow the instructions outlined above.
But if you've taken advantage of a cash switching incentive from any of the Royal Bank's brands, including RBS, NatWest or Ulster Bank between October 2017 and February 23, 2020 you won't be eligible for it this time around.
The Royal Bank of Scotland Group recently announced that it is changing its name to the NatWest Group but the banking giant says there's no change for customers.
RBS and NatWest have recently come under fire for hiking overdraft fees up to 40 per cent from 20 per cent.
The banks are also scrapping cashback on bills for 1.7million customers.
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