Nationwide to pay £ 125 to existing members who switch checking accounts | At national scale

Nationwide has entered the battle to persuade savers to switch to a new checking account provider, offering a cash incentive that rewards customers who are already using one of its services over new ones.

Following in the footsteps of HSBC and Virgin Money, Britain’s largest mortgage lender will pay existing customers, such as mortgage borrowers, £ 125 if they also transfer their checking account to Nationwide. New clients will receive £ 100 for their move.

Nationwide has also launched an Instant Flex Savings Account which will be exclusively available to Checking Account members. It pays an introductory interest rate of 0.35% for 12 months.

To benefit from the incentive, the change must be made using the current account change service (Cass) and a minimum of two active withdrawals must be added to the new account. Offer applies to changes made from August 18.

Existing Nationwide members must use their internet bank to change the checking account they hold with another provider in order to claim their £ 125 bonus.

Tom Riley, Nationwide Director of Banking and Savings, said: “As a mutual, we always seek to reward the loyalty of our members with exclusive products and services. This is why our new Incentive for Change offers a higher level of reward for existing members compared to those who are new to the company.

In general, people have been reluctant to switch bank account providers during the pandemic. However, as things have started to return to normal, incentives are offered to encourage people to change.

HSBC is offering £ 140 to new customers who sign up for its Advance account through the MoneySavingExpert (MSE) website. The multinational bank also offers a 1% paying savings account. MSE described the offer as “the biggest cash bribe we’ve seen in 18 months.”

Unlike Nationwide, account changers must pay a minimum of £ 1,750 to the HSBC account. Meanwhile, Virgin Money is offering a £ 150 gift card to use for Virgin Experience Days for users of its checking account, although there are “a few hurdles to overcome to get the benefits,” according to MSE.

Nationwide offers three main current accounts, including the FlexPlus bank account, which costs £ 13 / month; FlexDirect, an online account paying 2% credit interest on balances up to £ 1,500 and overdraft without interest for the first 12 months; and its FlexAccount, where members can do their banking online and at its branches free of charge.