Which Banks Give You Money for Opening an Account?

Opening a new bank account in the UK can come with various incentives, including cash rewards and bank switching offers. Many banks offer these incentives to attract new customers.

This guide will help you navigate through the best banks offering cash incentives, the steps to open a new bank account such as a current account, important considerations, and why banks offer these incentives.

This guide will help you navigate through the best banks offering cash incentives, including which banks give you money for opening an account in the UK, the steps to open a new bank account such as a current account, important considerations, and why banks offer these incentives.

Banks Offering Cash Incentives for Opening a Bank Account

Several UK banks provide cash bonuses for new customers who open a current account and meet specific criteria. Here are some of the top banks currently offering these incentives:

1) HSBC Opening Bonus 

HSBC offers a £500 welcome deposit for eligible new customers who open a new HSBC Bank Premier checking account.

• Cash Bonus:  £500 welcome deposit.
• Eligibility Requirements:
  • New Account: Open a new HSBC Premier checking account online using the offer page by February 15, 2023.
  • Direct Deposits: Make recurring qualifying direct deposits totaling at least £10,000 per month from a third party to your HSBC Premier checking account(s) for three consecutive calendar months, starting from the second full calendar month after account opening.
  • Account Status: Ensure your HSBC Premier checking account remains open, and in good standing, and is not changed to a product with lower balance requirements at the time of fulfillment.
  • Residency and Age: Must be at least 18 years old, have a Social Security Number, a U.S. mobile number, a current U.S. residential address, and have had U.S. residency for the past year.
  • New Customer: Customers who have or have an HSBC account in the U.S. are not eligible for this offer.
  • Single Offer: Only one welcome deposit per customer, including all individual and joint accounts.
• Claim Process:
  • Open Account: Open the new HSBC Premier checking account online by the specified deadline.
  • Direct Deposits: Ensure qualifying direct deposits are made for three consecutive months.
  • Receive Bonus: The £500 welcome deposit will be automatically credited to your account approximately eight weeks after completing all qualifying activities.

2) Lloyds Bank Current Account Offer

Lloyds Bank offers a £175 incentive for new customers who open and switch to a new Club Lloyds, Club Silver, or Club Platinum account. Here are the key conditions to qualify for this incentive:

• Cash Bonus: £175 when you switch to a new Club Lloyds Bank, Club Silver, or Club Platinum account
• Eligibility Requirements:
  • Apply online.
  • Initiate the switch within a specified period (typically 30-45 days) of opening the new account.
  • Transfer at least two direct debits to the new account.
  • Monthly Deposit: Pay at least £1,500 into the account each month.
  • Account History: Ineligible if you've received a switching bonus from Lloyds Bank in the past (specific terms may apply).
• Claim Process:
  • Complete the switch process as per the eligibility requirements.
  • Receive the £175 directly into your account after meeting the criteria.

For the most up-to-date information and specific details about current incentives, visit the Lloyds Bank website.

3) Virgin Money Current Account Offer

Virgin Money offers a £150 gift card for new customers who open and switch to their Virgin Money current account. Here are the key conditions to qualify for this incentive:

• Cash Bonus: £150 for Virgin Experience Days.
• Eligibility Requirements:
  • Apply online.
  • Initiate the switch within 45 days of opening the Virgin Money current account.
  • Transfer at least two direct debits to the new account.
  • Download the mobile banking app and add £1,000 to the linked savings account.
  • Ineligible if you've received a Virgin Switch bonus before or opened a bank account with Clydesdale or Yorkshire Bank since March 2021.
• Claim Process:
  • Complete the switch process as per the eligibility requirements.
  • The £150 gift card can be used for various Virgin Experience Days, such as a supercar driving experience or a fancy dinner at the top of the Shard.

Virgin Money provides additional benefits such as a 2% AER interest on your first £1,000.

4) NatWest Bank Current Account Offer

NatWest bank saw nearly 100,000 customers switch accounts between July and September last year, offering a £200 incentive for new account switches, alongside potential annual rewards and various account benefits like Round Ups and Know Your Credit Score.

Here are the key conditions to qualify for this incentive:

• Cash Bonus: £200 when you switch to a NatWest Select, Reward, Premier Select, or Premier Reward account
• Eligibility Requirements:
  • Apply online.
  • Initiate the switch within 60 days of opening the new account.
  • Transfer at least two direct debits to the new account.
  • Deposit Requirements: Pay at least £1,250 into the account within 60 days of switching.
  • Account History: Ineligible if you’ve received a switching bonus from NatWest, Royal Bank of Scotland, or Ulster Bank between October 2017 and January 2023.
• Claim Process:
  • Complete the switch process as per the eligibility requirements.
  • Receive the £200 directly into your account after meeting the criteria.

Natwest Premier Accounts: Provide additional perks like travel insurance, concierge services, and preferential rates.

5) First Direct 1st Account Offer

Switch to First Direct's 1st Account and receive a £175 welcome bonus. Here are the key conditions to qualify for this incentive:

• Cash Bonus: £175 when you switch to First Direct's 1st Account 
• Eligibility Requirements:
  • Complete a full switch using the Current Account Switch Service, including:
    • Transfer at least 2 Direct Debits or standing orders.
    • Deposit £1,000 into the account.
    • Make 5 or more debit card payments.
    • Log on to digital banking within 30 days of opening the account.
  • New customers only, who haven’t previously held a First Direct bank product.
  • Not available to individuals who have opened an HSBC Bank current account on or after 1 January 2018.
  • Offer subject to withdrawal at any time and subject to status. UK residents only.
• Claim Process:
  • Complete the switch process as per the eligibility requirements.
  • Receive the £200 directly into your account after meeting the criteria.
• Interest-Free Overdraft: Enjoy a £250 interest-free overdraft (subject to status).
• 7.00% AER/gross Regular Saver: Save between £25 and £300 for a fixed 12-month term, earning up to 7.00% AER/gross p.a. interest.
• No First Direct Debit Card Fees: No fees when spending abroad with your First Direct debit card.

The switch process, which must be completed within 7 working days, is subject to detailed terms and conditions that include eligibility criteria and account usage requirements.

How to Open a New Bank Account?

Opening a bank account is a straightforward process whether done in person or online. You'll need to provide valid government-issued ID, such as a driver's license or passport, along with personal details like your full name, date of birth, and contact information. 

Some banks may require proof of address, such as a utility bill, and your Social Security Number or ITIN for IRS purposes.

Opening a new bank account in the UK is straightforward if you follow these steps:

1. Choose Application Method: Decide how to apply to open a bank account online, by phone, or in person.
2. Prepare ID: Gather government-issued ID like a driver’s license or passport.
3. Provide Contact Details: Enter personal information: name, date of birth, address, email, and phone number.
4. Select Account Type: Choose between personal or joint accounts.
5. Accept Terms: Review and agree to account terms, including fees and withdrawal rules.
6. Submit Application: Complete and submit your application.
7. Fund Account: Transfer funds to activate your new savings account.

Choosing the right bank account means finding one that fits your needs for daily transactions or savings. Kendall Meade advises prioritizing accounts with competitive interest rates and understanding and avoiding fees. Managing your account online and through mobile apps offers convenience while updating payments when switching banks helps maintain financial stability.

Important Considerations When Choosing a New Account to Open

When selecting a new bank account, consider the following detailed factors:

1. Account Type
   Choose the account that aligns with your financial goals. Options include:
   • Current Accounts: For everyday transactions and frequent access to funds.
   • Savings Accounts: To earn interest on your savings with limited access.
   • Student Accounts: Tailored for students, often with perks like fee waivers and lower overdraft limits.
2. Fees and Charges
   Be aware of:
   • Monthly Maintenance Fees: Regular charges for account management.
   • Overdraft Fees: Costs associated with borrowing beyond your balance.
   • ATM Withdrawal Fees: Charges for using ATMs outside the bank’s network.
   • Additional Service Fees: Costs for paper statements, overdraft protection, and other services. Look for fee waivers or reductions based on account balance or activity.
3. Interest Rates
   Compare:
   • Interest Rates on Balances: Higher rates mean better returns on your savings.
   • Overdraft Rates: Lower rates reduce the cost of borrowing.
   • Rewards Programs: Some accounts offer cashback or interest rate bonuses for meeting certain criteria. Evaluate these to maximize your financial benefits.
4. Minimum Balance Requirements
   Understand:
   • Initial Deposit: The amount needed to open the account.
   • Ongoing Balance Requirements: Some accounts require maintaining a minimum balance to avoid fees or earn interest. Ensure these requirements fit your financial situation and cash flow.
5. Accessibility and Convenience
   Assess:
   • Branch Network: Proximity to physical branches for in-person transactions and support.
   • Online Banking: Features such as account management, bill payments, and transaction history.
   • Mobile App: Capabilities for mobile check deposit, real-time account alerts, budgeting tools, and robust security measures. Ensure the app is user-friendly and aligns with your banking needs.
   • ATM Network: Availability of ATMs in convenient locations and whether the bank offers fee reimbursements for out-of-network ATM use.
6. Insurance
   Confirm:
   • FDIC or NCUA Insurance: Ensures your deposits are protected up to £250,000 per depositor, per institution. This provides peace of mind that your funds are secure in the event of bank failure.
7. Additional Features and Offers
   Explore:
   • Cashback Programs: Earn rewards on everyday purchases.
   • Travel Insurance: Coverage for travel-related issues like lost luggage or trip cancellations.
   • Discounts and Partnerships: Access to discounts with partner retailers or services. Review any special offers that can provide extra value or savings.

Why do Banks Offer Switching Incentives?

Banks provide incentives, like sign-up bonuses, to attract new customers and encourage them to open accounts. These bonuses, typically in the form of cash deposits, vary widely, ranging from £100 to £3,000. 

The specific amount often depends on factors such as the initial deposit made, the duration the account remains open, and whether specific conditions are fulfilled.

How to Switch a Bank Account?

Switching your bank account can be done easily using the Current Account Switch Service. Here’s a step-by-step guide:

1. Choose Your New Bank Account: Select a bank account with the best incentives and features for your needs. Consider features like bill pay and mobile deposit, compare fees, interest rates, and branch/ATM access and look for bonuses when switching banks.
2. Transfer Automatic Payments: List and transfer direct deposits, bill payments, and subscriptions and update linked accounts and cancel unused services.
3. Open the New Account: Provide personal info, fund your account and follow the steps outlined earlier to open your new account.
4. Set Up Online Banking: Enroll in online and mobile banking for easy access.
5. Start the Switch: Notify your new bank that you wish to switch, and they will handle the process.
6. Transfer Direct Debits and Standing Orders: Your new bank will transfer all your direct debits and standing orders for you.
7. Transfer Your Balance: Your old bank account balance will be transferred to your new account.
8. Close Old Account: Your old account will be closed automatically once the switch is complete. Ensure all transactions are switched before closing.

Also Read:

• Best Bank Switch Offers in the UK
• How to Switch Business Bank Accounts
• Does Switching Banks Affect Credit Scores?

Frequently Asked Questions

1. How to claim £175 from First Direct?

To claim the £175 switching bonus from First Direct, you need to:

• Open a First Direct 1st Account.
• Use the Current Account Switch Service to transfer your existing direct debits and standing orders.
• Deposit at least £1,000 within three months of opening the account.

2. Are First Direct and HSBC the same bank?

First Direct operates as a division of HSBC UK Bank plc, focusing primarily on providing financial services.

3. What are the general requirements to qualify for opening bank account offers?

Generally, to qualify for bank account opening offers, you need to:

• Be a new customer to the bank.
• Comply with the terms and conditions specified by the bank for the offer.
• Direct Deposit: Some banks may require you to set up a direct deposit into the new account within a specified period.
• Account Type: Offers may be specific to certain types of accounts (e.g., checking accounts) or require opening multiple accounts (e.g., checking and savings).
• Time Period: There may be a requirement to keep the account open and in good standing for a certain period to receive the bonus.
• Credit Check: Depending on the bank's policies, they may perform a credit check as part of the account opening process.
• Residency: You may need to be a resident of a specific geographic area where the promotion is available.