Major bank offers customers £175 cash bonus but you will need to act fast – how you can get it
There is also a way you can get a £200 cash boost
HOUSEHOLDS could bag £175 of free cash with one easy switch – but they will need to act fast.
Banks and building societies regularly run switching offers to draw in new customers but they usually only last for a limited time.
Lloyds has a switching incentive for new customers looking to open an account – but you need to be quick.
The bank is offering existing and new customers from any other bank account £175 if they switch to a Club Lloyds account between today February 13 and March 28.
Lloyds guarantees the money will be sent to bank accounts within three days after the complete switch, though it may take ten days for the funds to be processed.
What is a Club Lloyds account?
There are three types of Club Lloyds accounts:
- Club Lloyds
- Club Lloyds Silver
- Club Lloyds Platinum Account
There is a £3 monthly fee to hold a Club Lloyds account but this will be waived each month if more than £2,000 is paid into the account.
Once you’ve signed up to a Club Lloyds account you can choose from one of the following perks:
- 12 months of Disney+
- 6 Vue or Oden cinema tickets
- An annual digital Coffee Club
- A Gourmet Society membership
- An annual magazine subscription
Customers can also take advantage of Everyday Offers, providing cashback when shopping at select retailers.
When you pay out two direct debits each month you’ll earn 1.50% AER variable credit interest on balances between £1 and £3,999.99.
And 3.00% AER variable credit interest on any part of the balance between £4,000 and £5,000.
Club Lloyds could also get a 0.20% discount off the initial rate when applying for a mortgage.
How do I switch?
The easiest way to switch banks is by using the Current Account Switch Service (CASS).
Over nine million people have used the service so far to swap their current accounts.
Most major banks and building societies are signed up. The full list is on the CASS’ website.
Through the service, you have to contact your new desired bank to apply for one of its accounts.
If you are accepted, they will offer to make the switch for you automatically and ask you to choose a date to do it.
Your old bank should then talk to your old one and everything will be switched across, including your balance, direct debits and salary.
After this, you will receive your new cards, log-in details and any PINS.
How switching bank accounts affects you credit score
SWITCHING banks regularly can negatively impact your credit score meaning you’re less likely to be approved for a loan or credit.
Your credit score may be affected if you make a switch so bear that in mind if you are looking to apply for a loan or you are planning on buying a property any time soon.
Are other banks offering switching bonuses?
No, the three other banks – Co-op, TSB and First Direct – with switching bonuses all pulled the offers in January this year.
HSBC and Nationwide also had switching bonus offers worth up to £200, but these offers expired last year.
Like the Lloyds offer the switching bonuses usually come with requirements, such as two regular direct debits in your account or a monthly fee.
It’s worth keeping an eye on these offers may come around again.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
You can also join our new Sun Money to share stories and tips and engage with the consumer team and other group members.