Barclays has launched a new cash switch offer, which means some customers could receive total bonuses of up to £900 if they switch both their current account and their Isa savings.
On Tuesday, the bank launched a new current account offer, with a £200 cash reward for new customers switching to its bank account with blue rewards, and £400 cash for new customers switching to a premier account.
The offer applies to switches made between 7 October and 27 November. To qualify, customers must open a Barclays current account or premier current account using the Barclays app.
It means Barclays have joined the battle between high street banks to attract new customers, which has already seen several offer significant sums or other perks.
Lloyds are the bank offering the biggest initial switch offer of £200, with additional perks on top, while the likes of NatWest, first direct and Nationwide all have £175 offerings.
TSB, Danske Bank and Co-operative Bank all have offerings too, ranging from £100 to £180 initially, with some offering more money for staying longer afterwards.
While most consumers may benefit from changing who their current account is held with, experts have urged them to look beyond the headline figures to ensure that what the new bank or building society offers matches their needs.
For example, only a smaller number of people would be able to get the full £900 from Barclays, given that the maximum £500 for an Isa switch requires at least £100,000 in the account.
However, many current accounts may also come with a much higher interest rate – around 7 per cent for several – for savings accounts which can only be accessed once you bank with that brand.
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Other rewards or factors may also be useful for some people, whether it’s cashback on bills, free subscriptions or nearby physical branches.
Customers opening a current account with Barclays for the switch offer would need to sign up to the blue rewards scheme for £5 a month. The scheme gives customers perks such as cashback on spending, enhanced savings rates and an Apple TV+ subscription.
They must also complete a “full switch” in the app, including at least two active direct debits.
They must pay at least £2,000 into their new Barclays current account or £4,000 into a new premier current account within 30 days of opening to get the cash bonus. The switch must be completed through the current account switch service (Cass).
Customers will receive their £200 or £400 switching bonus within 28 days of meeting the eligibility criteria, paid into their account.
To qualify for premier banking, customers need to pay in a gross annual income of at least £75,000 or have a total balance of at least £100,000 in savings with Barclays in eligible investments, or a mix of both.
Those who will not be eligible for the current account switch cash offer include customers who have an open current account with Barclays on or before the offer starts on 7 October; customers who have taken up a switching offer from Barclays in the past; customers opening a joint account; under-18s; and customers living outside the UK.
On top of the current account offer, customers who make the switch from 7 October may qualify for additional cash bonuses by switching their Isa savings.
The Isa cash reward is up to £500 per customer. This means someone taking full advantage of the Barclays offers could receive £900 in rewards.
To get an Isa transfer reward under Barclays’ offer, someone would need to already hold or open a Barclays current account and then use the Isa transfer-in service to move a minimum of £25,000 to one of Barclays’ cash Isa products.
The reward customers receive will be based on how much is transferred.
Customers transferring £25,000 to £49,999.99, will receive £100; those moving £50,000 to £99,999.99 can get £200 and those transferring £100,000-plus will receive £500.
The steps must be completed by 28 November to receive the Isa reward.
To use Barclays’ Isa transfer service, customers can select the “transfer-in an existing Isa” option in the app or online banking, or they can visit a branch.
The reward payment will be paid to the customer’s Barclays current account within 60 business days after the completion of their last eligible transfer or 60 business days after 28 November, whichever is sooner, the bank said.
