A major UK bank has launched a £200 switching offer to attract current account holders.
Nationwide Building Society is also offering an 8% interest on savings accounts as the competition to attract current account holders continues to heat up. Britain's biggest account holders account explained the deal is available to people using the Current Account Switch Service (Cass) and transferring a minimum of two active direct debits to the new account.
Tom Riley, director of retail products at Nationwide Building Society, said: “We want to give people every reason to join and stay with Nationwide. That’s why we are offering new and existing current account customers a top-of-market £200 if they switch their main banking relationship to the society.
READ MORE: Emmerdale fans thrilled as 'Ross Barton' returns to our screens
READ MORE: Three people infected with incurable dog disease spreading in UK
“We’re also rewarding our current account customers with a market-leading rate of 8% AER on our Flex Regular Saver.”
The offer is available to people switching to one of Nationwide’s three main current accounts – FlexPlus, FlexDirect or the FlexAccount. It has also introduced a new Flex Regular Saver account, exclusively for current account customers, paying 8% AER (annual equivalent rate) for 12 months.
After a year, the account will revert to an instant access account. Nationwide has not yet confirmed what interest rate the instant access account will have.
If four or more withdrawals are made from the Flex Regular Saver within 12 months of the account being opened, the rate on the account will fall to 2.15% AER. According to financial information website Moneyfacts, the last time a cash regular savings account was offering a rate of 8% was a decade ago – in 2013. The fixed-term regular saver was being offered with a rate of 8% by first direct.
Members can save up to £200 per calendar month in Nationwide’s new online-managed savings account, which allows up to three withdrawals within the 12 months after the account is opened.
The Flex Regular Saver is only available to members who hold one of Nationwide’s current accounts – FlexPlus, FlexDirect, FlexAccount, FlexStudent, FlexGraduate, FlexBasic or FlexOne. Members can only open one Flex Regular Saver, either as an individual or a joint account.
Rachel Springall, a finance expert at Moneyfacts, said: “Regular savings accounts work differently to easy access accounts, so it’s important customers read through the account’s criteria to ensure it is right for them.”
She added: “It is great to see Nationwide offering a lucrative £200 free cash offer to entice customers, which could be useful for those looking for a cash boost amid a cost-of-living crisis.
“Nationwide offer some competitive current accounts which have various perks which can suit many different needs. Choosing the right current account depends on someone’s spending habits as there are a variety of different accounts out there with their own benefits and charges, so it is worth looking at different options to Nationwide.
“Consumers who are searching for a rewarding bank account may wish to choose one that offers cashback on spending or even on their monthly bills – there are even accounts that pay a monthly reward when certain eligibility criteria is met. On the other hand, those consumers who may dip into their overdraft would be better off choosing an account with a competitive overdraft tariff or even an account with an interest-free buffer.
“Those consumers who plan to make frequent trips abroad can also find accounts that don’t charge them for using their debit card in an ATM or in store, so they can avoid paying out on transaction fees compared to a more traditional bank account.
“Switching current accounts is easy to do using the Current Account Switch Service and some banks will pay an upfront free cash incentive to entice customers. However, it’s the overall package of an account that should be weighed up before someone commits to switching their current account.”
Don't miss the biggest and breaking stories by signing up to the Echo Daily newsletter here
Win a 5-night holiday to the Turkish coast at Cook’s Club Adakoy Hotel