24 May 2024

New TSB and Lloyds switching deals - are they worth going for?

You can get £100 plus £60 cashback from TSB and £175 from Lloyds

The battle for current account customers is hotting up as both Lloyds and TSB launch new cash incentives for switching.

TSB is now offering £100 to move and £60 cashback for those who open a Spend and Save account, while Lloyds Bank is offering £175 to switch to any of its Club Lloyds accounts, from Tuesday.

This means from next week there'll be six switching deals to choose from including Virgin Money, First Direct, Santander and one for existing members of Nationwide.

Here, Which? takes a closer look at what the TSB and Lloyds deals offer, how existing customers rate their service, and how the incentives compare.

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 by switching to Lloyds Bank

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.

The switching offer will be available from Tuesday 28 May until Tuesday 30 July.

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.

You’ll also earn interest of 1.50% AER on balances between £1 and £3,999.99 and 3% AER on balances between £4,000 and £5,000. Interest is worked out daily and paid monthly. You’ll only earn this if you have two direct debits coming out of the account every month.

You can also get access to Everyday Offers, which provides cashback when shopping at certain retailers.

There’s a £3 fee for maintaining any of the Club Lloyds accounts (in addition to the packaged account fee), but it will be refunded each month if you pay in £2,000 or more.

Find out more: best packaged bank accounts

What's in the small print?

To qualify for the switching bonus you’ll need to switch to a new Club Lloyds Account, Club Lloyds Platinum Account or a Club Lloyds Silver Account using the Current Account Switch Service.

Your switch must include the transfer of a minimum of three active direct debits from your old account being switched.

Existing customers can qualify for the switch as long as they open a new Club Lloyds account, and you’ll need to be switching from a non-Lloyds bank account.

You'll receive the £175 cash bonus within three working days of your switch completing.

You won’t be eligible for the offer if:

You change your existing Lloyds Bank account to a Club Lloyds account.
You’ve received a switching offer since April 2020, switching to any Lloyds Bank or Halifax current account.
You are switching to a joint account and one of the parties has already received a switching offer since April 2020.
The bank you are switching from does not participate in the CASS.

Find out more: how to switch your bank account

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How to get £100 + £60 for switching to TSB

TSB is offering new customers £100 to switch to one of its Spend and Save Current Accounts and £60 cashback if they stay with TSB until at least January 2025.

The Spend and Save current account is free, and you can earn up to £5 cashback a month, up to the first six months, when you make 20 debit card payments each month. For the first six months, you can earn double this rate to a maximum of £60.

The Spend and Save Plus current account has all the same perks as the basic version, but it has a £3 monthly fee, meaning you’d spend £36 a year.

It allows you to earn £5 cashback every month with no six-month limit when you make 20 debit transactions each month. You’ll also get double this rate for the first six months, meaning you can also earn up to £60.

The Plus account also offers an overdraft of up to £2,000, with £100 interest-free and no fees on debit card transactions worldwide.

If you qualify for cashback by making at least 20 debit card payments in December, you’ll get to pick a reward in January.

You can choose between a night for two at a choice of hotels, including Mercure, two Odeon cinema tickets each month for three months, or Now Entertainment membership for six months.

Find out more: best bank accounts for cashback

What's in the small print?

To get the £100, you’ll need to use the CASS, log in to the TSB mobile app, and make at least five payments using the debit card of your new account before 5 July.

You’ll be paid £100 between 17 and 31 July.

You won’t be eligible for it if:

you’ve received an incentive or benefit for switching to TSB Bank using the Current Account Switch Service since 1 October 2022.
you’re switching from another TSB account.

Lloyds Vs TSB - which is the better provider?

Lloyds Bank received a satisfaction score of 72% in our latest survey of the best banks, putting it joint 12th out of 21 providers.

Customers rated it very highly for its online banking service, customer service and how it deals with complaints.

Lloyds also received middling scores for in-branch service, mobile banking, telephone banking, and calling customer service.

TSB's customer satisfaction score of 69% placed it joint 18th out of 21 providers.

It got average scores for its customer service, how it deals with complaints, and its online and mobile banking. It received two stars for its branch and telephone banking service.

Find out more: best bank and bank accounts 2024

How do the deals compare?

Nationwide is offering existing members £200 to switch to one of its FlexPlus, FlexDirect or FlexAccount.

Santander is offering £175 for switching to its Edge, Edge Up or Private bank accounts.

First Direct is paying out £175 for those that open its 1st accounts.

Meanwhile, instead of a cash incentive, Virgin Money will pay 10% interest on balances up to £1,000 for a year if you switch to one of its three current accounts – M, M Plus and Club M.