Banks are keen to compete for your custom, so it pays to shop around for the best deals.
“When it comes to banks, it’s important to remember that loyalty doesn’t pay, but moving your money can,” says finance expert Rachel Springall.
“TSB, First Direct, HSBC, Lloyds, Nationwide, and Santander will all pay you to shift accounts. And it’s easy with the Current Account Switch Guarantee, with your regular payments, income, and balance will automatically shifted within seven days, making it an easy and pain-free process.
“The first month of any new year can be tight for many customers, after the festive splurge, so a free cash boost could make a big difference. However, it is vital customers pick the right current account that suits their everyday needs. Customers could consider opening more than one account to suit different needs too, they just need to make sure they meet any eligibility criteria to earn any perks.”
There’s a new TSB deal leading the pack for many, as Alastair Douglas, TotallyMoney CEO explains: “TSB has just launched a brand-new current account switch offer which could bank you an extra £200 over the next few months. It’s available on both the free Spend & Save account, and the Spend and Save Plus which comes with a £3 monthly fee.
“The paid account comes with added benefits including an interest-free overdraft, fee-free foreign spending, and up to £5 cash back every month.
“To be eligible for the first £150, you’ll need to switch by the 20th of March, deposit at least £1,000, make five purchases with the debit card, and log into the TSB app. You can then earn an extra £50 when you deposit another £1,000 in April.
Rachel, Finance Expert at Moneyfactscompare.co.uk , has also taken a looki at some of the other deals on the market this month.
She says: “Current account providers have launched some lucrative free cash offers for switchers to kick off 2026. The latest offer from TSB should not go unnoticed, as not only will it pay £150 in cash, but the account will reward a further £50 by the end of May if customers meet specific requirements.”
Is it a lot of hassle to change bank accounts?
It’s tempting to think it’s too much trouble, but Rachel says it’s actually fairly stress-free: “It’s quick and easy to switch using the Current Account Switch Service (CASS), and there are a variety of free cash perks to choose from.
“The accounts are all very different, some pay credit interest, others reward customers each time they spend on bills, and some are simpler and carry a competitive overdraft tariff.
“The right current account does depend on someone’s individual circumstances, so it is important consumers are not swayed by free cash alone.”
Warning. Overdrafts are the worst form of mainstream debt. The interest rate will shock you…
A snip from the new ‘Debt cost cutting Masterclass: Cards, Loans, Overdrafts, BNPL’ episode of the Martin Lewis Podcast. Listen to it on https://t.co/P4U5KDLzT0, Apple, Spotify & all… pic.twitter.com/4Tkkm0Ssd9
— Martin Lewis (@MartinSLewis) January 9, 2026
Nationwide and Lloyds best switching deals
“Customers who want to chase down a competitive rate of interest will find Nationwide currently offers the highest in-credit interest rate of 5.00% AER on its FlexDirect account, plus it is paying £175 for switchers right now,” says Rachel.
The credit interest rate will fall after 12 months to 1% AER, and customers will need to meet the set terms and conditions to receive the cashback.
Rachel also highlights a deal from Lloyds: “Another high street brand with a new switching offer is Lloyds Bank where customers can pocket £250 by moving to one of the Club Lloyds accounts, but the offer ends in a couple of weeks, on 3 February.
“The suite of current accounts from Lloyds Bank are tailored for varying needs, but the Club Lloyds is seen as its most affordable option for those who want some additional benefits.”
There is a £5 monthly fee to pay, but this is waived when customers fund the account with £2,000 per month.
There’s other perks too – account holders can pick either a 12-month Disney+ subscription, cinema tickets, a magazine subscription, a Gourmet Society membership or digital movie rentals.
“Those who opt for either the Silver, Platinum (both with Club Lloyds added on), or the Lloyds Premier, will charge a fee, but the array of benefits might appeal to those who want to add different insurances into one bundled packaged account,” she says.
“As an example, those who want travel insurance, breakdown cover and mobile phone insurance can get these included within the Platinum Club Lloyds account. However, it’s always worthwhile for consumers to shop around for insurance policies, to ensure they are getting the right cover and best price.”
Santander bank switching deals
“Those looking to maximise the interest and cashback they earn could look towards Santander, which currently offers a £200 switching cash perk, and customers who put £1,500 per month into their Edge Up current account can earn 2.10% AER interest on balances up to £25,000.
“The account also provides some enticing perks, such as cashback on selected spending and bills capped at £15 per month, but it is worth noting they will need to pay a £5 per month fee. Further enhancing the account’s appeal is the option to sign up to Santander Boosts.”
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HSBC is offering a huge £750 cashback to some customers
“An alternative account with a bundle of perks is the HSBC Premier Account , but customers must have an annual income of £100,000 or investments to be eligible,” says Rachel.
“The account offers an upfront switching offer of £250, which will be increased to total £750 depending on whether a customer has qualifying income or investments placed with HSBC.”
HSBC Premier customers will gain airport lounge access and are able to apply for its Premier World credit card that hosts a lucrative reward scheme.
“If customers want a simple fuss-free account, then first direct is offering £175 for those who switch, it offers a competitive overdraft with its £250 buffer, subject to application, and gives customers access to its lucrative regular savings account that pays 7% AER.
