10 Jul 2024

Barclays launches £175 currrent account switching offer - is it worth going for?

The deal is only available to new customers using the mobile banking app

If you’re looking to make some easy cash this summer, Barclays will pay you £175 to switch your bank account and join its Blue Rewards Scheme.

The Blue Rewards scheme - which was recently overhauled - costs £5 per month and gets you cashback on your spending and other perks such as streaming subscriptions.

Here Which? explains how to qualify for the new switching deal, if Barclays is a good provider and how it compares to others on the market.

Please note that the information in this article is for information purposes only and does not constitute advice. Please refer to the particular terms and conditions of the current account provider before committing to any financial products.

How to get £175 for switching

To get the latest switching deal you’ll need to use the Barclays mobile banking app to switch your current account.

You must open a sole Barclays bank account and join its Blue Reward scheme for £5 per month, or open a sole Barclays Premier current account (we’ve rounded up what the accounts offer below). The offer isn't available for joint accounts.

You’ll need to be switching at least two active direct debits and pay at least £800 into your new account by 30 August 2024.

You’ll be paid the £175 within 28 days of qualifying for the offer.

Find out more: how to switch your bank account

What do the accounts offer?

You'll need to sign up to either of these accounts.

Barclays Current Account

The Barclays Current Account is a no frills bank account with no annual fee.

You get money management tools to use within the Barclays app such as spending insights and the ability to set daily spending limits.

The account also comes with an optional arranged overdraft charging 35% EAR and comes with a £15 buffer.

If you go for this account, you'll also need to opt into Blue Rewards as part of the switching criteria. See the full list of Blue Rewards below.

Premier Current Account

The premier account is available to those who earn at least £75,000 a year, or have a total balance of at least £100,000 in savings and investments.

It includes an Apple TV+ and MLS season pass, as well as exclusive savings rates and financial guides. The full benefits of the Premier account can be found on Barclays website.

Find out more: best bank and bank accounts

What's in the small print?

This deal is only available to new customers and you’ll need to use the Barclays mobile banking app to apply.

You’ll also need to use the Current Account Switch Service (CASS) for the move with another participating bank or building society.

If opting for the Barclays Current Account you’ll also need to opt into Blue Rewards as part of the process, which costs £5 per month.

You must start the switch by 30 August and complete it within 30 days.

Find out more: 6 reasons not to switch your bank account

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What do you get with Barclays Blue Rewards?

The Blue Rewards scheme has recently been overhauled by Barclays.

From 4 September, members of Barclays' Blue Rewards scheme will no longer be paid a £5 monthly loyalty bonus.

The bonus is currently awarded to members who pay at least £800 a month into their linked current account, and have two or more active direct debits.

A series of additional monthly cash rewards for members with other Barclays products will also be axed as part of the overhaul.

These currently include:

£5 for members with a Barclays mortgage.
£5 for members who have a Barclays life insurance policy including critical illness cover.
£1.50 for those who have a life insurance policy without critical illness cover.
£1 for those who have a loan with Barclays.

The new and existing benefits will include:

Free Apple TV+, worth £8.99 a month
A US Major League Soccer (MLS) season pass, worth £14.99 a month during the season, which runs from February to October.
Linked savings accounts
Cashback incentives including 15% cashback on debit card spending at participating retailers

Find out more: Barclays to axe monthly loyalty bonus for Blue Rewards members

Is Barclays a good banking provider?

In our latest survey of bank account customers, Barclays ranked 8th out of 21 providers for customer service, with an overall customer score of 74%.

The bank achieved ratings of three stars in most categories, but achieved four stars for its mobile banking app.

When it comes to online banking security Barclays achieved a test score of 78% and came 4th out of 11 major banks.

Find out more: how safe is online banking?

How the switching offer compares

Despite there being six deals available last month, there are now just two offered by First Direct and Lloyds Bank.

First Direct £175

You can get £175 for switching to the 1st Account.

It comes with no monthly fee and offers a £250 interest-free overdraft buffer. However, if you borrow more than £250, you'll pay 39.9% EAR.

It also offers fee-free spending abroad. Before the bank scrapped its fees in 2023, customers used to pay 2.75% to withdraw cash or spend money abroad.

Find out more: First Direct £175 deal

Lloyds Bank - £175

The £175 bonus is available to new customers switching to a Club Lloyds account, which includes the Classic as well the Silver (£10 a month) and Platinum (£21 a month) packaged accounts.

All Club Lloyds accounts come with the option to pick one lifestyle benefit a year.

At the moment that includes a 12-month Disney+ subscription, six cinema tickets, an annual magazine subscription or an annual Coffee Club and Gourmet Society membership – giving you 25% off at Caffè Nero and 25% off your bill at thousands of restaurants.