Co-op Bank launches current account switching deal worth up to £150
- Co-op is paying new customers up to £150 to move their current accounts
- Six banks now offer a cash bribe to reel in new customers
Co-op has become the latest bank attempting to reel in new customers by offering a cash bonus.
It has launched a limited time switching bonus worth up to £150 for new customers who move their current account to Co-op.
Customers who switch their current account to a Co-op Standard Current Account or Everyday Extra account will receive £75 within seven days.
![Following the crowd: Co-op has become the latest bank to attempt to reel in new customers with a switching bonus - offering up to £150](https://i.dailymail.co.uk/1s/2024/06/07/13/85839171-0-image-a-1_1717761957529.jpg)
Following the crowd: Co-op has become the latest bank to attempt to reel in new customers with a switching bonus - offering up to £150
To get the full £150, customers will also need to open a regular saver account.
A further £15 per month for five months, amounting to £75 will be paid into the regular saver account within seven days of the 10th of the month following the qualifying period.
How to get the cash bonus
There are quite a few hoops to jump through to get the initial £75 payment, and even more to get the additional £15 a month payments to make up the full £150.
To bag the first £75, customers need to open one of Co-op's Standard Current Account or Everyday Extra account.
Customers who received a switching incentive from Co-op after 1 November 2022 will not be eligible for this switching bonus.
By the 30th day following the switch completing, customers must have two active direct debits set up on the account - these can include any that are transferred as part of the switch.
A minimum of £1,000 must also be deposited into the account.
Customers need to register for online or mobile banking and make a minimum of ten card transactions - including through their digital wallet.
To get the next £75, customers will need to open a Co-op regular saver.
The £15 monthly payments will not start until the switch has been completed and switchers receive the initial £75 payment.
Switchers need to open the regular saver account no later than midnight on the last day of the full calendar month following the switch completing.
They must also have deposited at least £50 in the regular saver account in the qualifying month.
Once the saver is set up and the money deposited, switchers will need to start depositing £1,000 or more each month in the current account, make a minimum of ten card transactions each month and maintain two or more active direct debits.
Banks are looking to reel in customers with cash bungs
If that is all too complicated, there are plenty of other banks offering cash bribes once again.
Co-op has joined the likes of Santander, Lloyds, Nationwide, TSB and First Direct by offering cash to switchers in a bid to attract new customers deposits.
First Direct, Lloyds and Santander are offering £175 to switching customers, TSB is paying £100 cash upfront and £10 cashback a month for six months to switchers, while Nationwide is paying £200 to existing Nationwide members who have a mortgage or savings account but don't have a current account.
Banks tend to launch switching incentives when they want to reel in more customers.
For example, in the last three months of 2023, Nationwide gained 196,260 customers on the back of a £200 switching incentive which ran for four months from 21 September 2023.
Andrew Hagger, personal finance expert of MoneyComms said: 'Switching deals certainly seem to be back in vogue.
'The Current Account Switch Service data does show spikes of new customers when cash incentives are on offer - Nationwide, NatWest and HSBC have all had some reasonable success in the last 12 months.
Hagger said: 'The only issue for the banks is how many customers actually stick around for any meaningful length of time - there will certainly be an element switching away for the next cash freebie as soon as they can.
For this reason, some banks like Co-op are opting to split the cash bonus over five months if customers keep depositing £1,000 a month in their current account in an attempt to prevent customers from taking the cash and dashing to find the next highest bonus.
Meanwhile TSB is offering a £100 switching bonus and £10 cashback a month for six months providing switchers make five or more spends using the TSB debit card in the first month, and then 20 or more spends on the debit card in each of the first six months.
Hagger adds 'It's a good form of marketing because not only do you gain a new customer - you also know that you've stolen them from one of your rivals - however, just how cost effective it is as an acquisition tool is up for debate.
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