Major banks offering up to £765 for new customers

Banks are offering substantial cash bonuses and perks to attract new customers for account switching.

Banks compete with cash incentives for account switches

Several UK banks, including Santander, NatWest, Lloyds, Barclays, and TSB, are enticing customers to switch accounts by offering substantial cash bonuses. Santander is providing a £180 cash incentive, along with a £25 Amazon voucher and attractive savings options. TSB offers £100 cash for switching, while Lloyds provides £185 alongside a choice of rewards such as Disney+ subscriptions or cinema tickets. Barclays gives a £175 cash incentive and competitive interest rates. Alongside these promotions, NatWest is introducing increased fees for certain transactions, potentially impacting its customer experience.

This aggressive approach by banks to attract customers reflects growing competition in the financial sector. As banks implement cash incentives, they also face challenges related to increasing fees for services, particularly as NatWest plans to raise charges on transactions. This dual strategy of offering bonuses while increasing fees could lead to customer dissatisfaction if not managed carefully. It raises the question of whether short-term incentives will translate into long-term loyalty.

Highlights

The dual strategy of incentives and fee hikes may shape customer loyalty in banking.