The big bank is offering customers a £175 cash bonus, but you'll need to act quickly
HOUSEHOLDS can receive €175 in free cash with one simple transfer, but they need to act quickly.
Banks and building societies regularly offer switching offers to attract new customers, but these are usually only valid for a limited time.
Lloyds has a switching incentive for new customers who want to open an account, but you need to be quick.
The bank is offering existing and new customers from any other bank account £175 if they switch to a Club Lloyds account between today, February 13 and March 28.
Lloyds guarantees that the money will be transferred to bank accounts within three days of the full transfer, although it may take up to ten days for the money to be processed.
What is a Club Lloyds account?
There are three types of Club Lloyds accounts:
- Club Lloyds
- Club Lloyds Silver
- Club Lloyds Platinum account
There is a monthly charge of £3 to maintain a Club Lloyds account, but this is waived each month if more than £2,000 is paid into the account.
Once you've signed up for a Club Lloyds account, you can choose from one of the following benefits:
- 12 months Disney+
- 6 cinema tickets Vue of Oden
- An annual digital Coffee Club
- A membership of the Gourmet Society
- An annual magazine subscription
Customers can also take advantage of daily offers, where they can get cash back when shopping at select retailers.
When you pay two direct debits each month, you'll earn 1.50% AER variable credit interest on balances between €1 and €3,999.99.
And 3.00% AER variable credit rate on any part of the balance between £4,000 and £5,000.
Club Lloyds could also get a 0.20% discount on the initial interest rate when applying for a mortgage.
How do I switch?
The easiest way to switch banks is to use the Current Account Switching Service (CASS).
To date, more than nine million people have used the service to exchange their checking accounts.
Most major banks and building societies are affiliated. The full list is on the CASS website.
Through the service, you will need to contact your new bank of choice to apply for one of its accounts.
If you are accepted, they will offer to automatically transfer for you and ask you to choose a date to do so.
Your old bank will then have to talk to your old one and everything will be transferred, including your balance, direct debits and salary.
You will then receive your new cards, login details and any PIN codes.
How switching bank accounts affects your credit score
Switching banks frequently can negatively impact your credit score, meaning you're less likely to be approved for a loan or line of credit.
Your credit score may be affected if you switch, so keep that in mind if you're looking to apply for a loan or buy a home soon.
Do other banks offer switching bonuses?
No, the three other banks – Co-op, TSB and First Direct – with switching bonuses all withdrew their offers in January this year.
HSBC and Nationwide also had offers for switching bonuses worth up to £200, but these offers expired last year.
As with the Lloyds offer, the switching bonuses usually come with requirements, such as two regular direct debits into your account or a monthly amount.
It's worth keeping an eye on whether these offers come up again.
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