NatWest launches new £200 switching offer and hikes savings interest rate - who is eligible?

NatWest has launched a new offer giving new and existing customers £200 if they switch bank accounts.

Customers will get the switch money if they change their current account to one of several NatWest, RBS or Ulster accounts.

The money will be sent within seven days of meeting the eligibility criteria of logging into the mobile banking app and paying in £1,250.

The bank has also increased the rate of interest on its digital regular saver account from 5% to 6%. The 6% rate is paid on balances up to £5,000 and customers can save up to £150 every month.

The news comes after banks heat up the battle and competition to attract current account customers.

Lewis Broadie, customer manager at NatWest, said: “We are welcoming customers to the bank with our highest ever switcher offer of £200.”

NatWest savings customers can also take part in a new prize draw. Customers can enter by turning on the bank’s “round ups” feature, which saves the change to the nearest pound when a transaction is made.

There are 33 prizes available, with three top prizes of £10,000 and 30 of £500. The draw closes on 21 April 2023.

Rachel Springall, a finance expert at Moneyfacts.co.uk, said: “It’s exciting to see such a generous free cash switching incentive launched onto the market at a time where consumers may well be looking to move their bank account for a cash boost.

“NatWest may be a good choice for customers looking to earn extra rewards throughout the year and savers may be enticed by the prize draw and the competitive linked regular saver.”

Eligibility for NatWest’s £200 switching offer

To be eligible for the switching offer:

• You can’t have switched cash from NatWest, RBS or Ulster Bank since October 2017.
• You must be moving from a non-NatWest account if switching to NatWest, from a non-RBS account if switching to RBS, or from a non-Ulster account if switching to Ulster.

The switch can be done through the Current Account Switch Service, which will transfer all your direct debits and standing orders to your new account within a week.

What else is NatWest offering customers?

Customers can also receive an additional £36 a year cashback by going to NatWest Reward or RBS Reward accounts.

The cashback is worth £5 a month and is available when you use the mobile app and pay out two direct debits worth at least £2 every month.

Both accounts come with a £2 monthly fee, which takes the cashback effectively down to £3 a month - £36 over the year.

What are other banks offering for switching accounts?

If you are not eligible for the NatWest switch reward, there are other offers currently available at other banks.

First Direct is paying new customers £175, while TSB is handing out £125 upfront then another £75 by November.

Lloyds Bank is paying £200 when you switch to one of its packaged bank accounts, which all come with monthly fees. The cheapest is the Lloyds’ Silver account, which offers travel, breakdown and mobile insurance for a £10 monthly fee.

Santander recently ended its £200 cashback switching offer due to overwhelming demand after it launched on 23 January.

Ms Springall said: “All these options are worth exploring in depth before starting the switching process as the right account depends on someone’s individual circumstances.

“Switching offers don’t tend to stay around for long, a good example is the Santander £200 free cash offer which ended last week.”