There are many banks in the UK that are fighting for their customers and they are doing this by offering new customers some great deals, and now that you can change banks in just 7 days it is a great time to get the service that you deserve and any perks that are being offered.
But before you jump straight into a move you must consider your financial position and to make sure that you are not about to re-mortgage your property or need a new loan, changing banks when these are just coming up might not be in your best interest. The reason for this can be your credit file, if you have applied for a new current account and you need to have an overdraft facility this will have required the bank to check your credit report and even though it can be great any new deals on their will have an effect for a few months at least.
Some of the banks seem to be throwing money at new customers and this can be great news but you will need to make sure that you follow all the terms and conditions carefully because you will not want to jeopardise your chances of claiming the money offered.
Some of the best deals that are around at the moment include:
First Direct – they are offering a £100 when you switch to them. There is no monthly fee with this account but there are restrictions that you must meet if you are hoping to secure the cash back offer. You will need to pay a £1000 into the account every month and sometimes this payment in must come from an outside source.
Santander – they are offering a 3% cash back offer on all the household bills that you pay including 1% cash back on their own mortgage too. Their catch is a minimum payment into the account of £500 per month and there is a £2 per month charge for the account.
Halifax – are offering with their reward current account the chance to make £160 over the course of the first year of banking with them. You are able to get this amount of money because when you switch you are automatically given the £100 switching bonus but this account also pays you £5 per month and this means over the course of the first year you have made £160. But, you must pay into the account £750 per month and have at least 2 direct debts set up and coming out of that account each and every month.
NatWest – select account is a free account but you can earn 1% cash back. This is with their debt card, you need to register the card and then in certain shops you will find that you earn cash back which you can have paid directly into your current account. The nice thing with this account is you are not tied to the amount that you have to pay in each month to receive the benefits there is no minimum.
Nationwide – This is a fee paying account and it is going to cost you £10 per month for the benefits of this account but it offers some great deals that if you purchased them separately then they would cost more than the £120 that the account costs. The other bonus of this account is the interest that you are able to get it is a whopping 3% on balances less than £2500. This is staggering because at the moment many savings accounts are paying out less than 0.1% in interest.
Co-operative bank -If you are looking for an account that is ethical in their approach then you might choose an account from the Co-op. This company has always focused on getting the fair deal and this is true for their banking too. You need to pay in £800 per calendar month to qualify for their current account.
Consider your options
As with all financial products you will need to look at the company that offers you the best deal for your money. Some banking companies will suit your needs better than others and you will need to take these individual requirements into your equation when you are deciding which current account is right for you.
You will need to be cautious as to the bank that you choose to use because if you swap accounts too frequently this will have a negative impact on your current credit situation. It is important that you look at all your options available and make sure that you apply for the one account that best suits your needs. You need to consider the overdraft facilities that the bank offers and the charges that they will make if you go over drawn. Because at first glance the Halifax account might look great with the potential to make £160 in the first year but if you are a frequent user of an overdraft facility any of the benefits of the account will quickly be taken up by their charges. You are looking at a minimum daily charge of £1 up to £3 if you are within your authorised limit this goes up to £5 per day if it is an unauthorised overdraft.
As with the financial difficulties that many of the UK banks have been facing over the last few years it is a good idea to check that you are not going to transfer to a bank with bad service and the potential to cause more problems. It is always a good idea to research the potential bank that you are thinking about transferring all your banking to. This will ensure that the customers that are already a part of that bank think that it is a good place for you to put your money. If you don’t like any of the local banks then your final option might be to check out your local credit union.
There are many of these popping up all over the UK and they offer some great ways to have accounts and not to be profiting some big banking organisation. They are non-profit organisations that are run for those people that invest their money with them. They are a great way to grow savings and to borrow money too.
Whatever option that you choose it is important that you think carefully before making your decision.
As always please comment below if you have any further insights into the UK banks that are offering something more for their customers.