Lloyds Bank will pay you £200 to open a new current account

Lloyds Bank has launched a new switching bonus, allowing savers to earn £200 for moving their current account. It is the highest bonus incentive currently available, but customers will only be eligible if they switch to a Club Lloyds or Lloyds Premier account. Club Lloyds requires customers to pay in £2,000 per month or be charged a £5 monthly fee, while Lloyds Premier charges £15 per month.

Therefore, customers will have to weight up the costs against the bonus and whether they will use any of the accounts’ perks – which you can read more about below. Existing Lloyds customers will have to transfer their current account using the Current Account Switch Service any time from 16 September. New customers will need to transfer three active direct debits to qualify for the cash bonus, while standing orders and recurring card payments won’t qualify.

The bank hasn’t set an end date for the offer, but warns it could be withdrawn at any time. Lloyds says it will pay out cash bonuses within ten working days for customers who meet the eligibility requirements. Anyone who has received a switching bonus from Lloyds, Halifax or Bank of Scotland since April 2020 also won’t be eligible for the switching reward.

The bank has upped its switching reward, having previously offered £185 for customers to move their current account in July. First Direct is also currently offering a £175 bonus to switch to its free current account, with the bonus paid out within 45 days of the account opening. Club Lloyds members have to pay out a £5 monthly fee for the account, but in return get a raft of perks.

The account is also free if customers deposit £2,000 or more into the account each month. Most customers would need to have their salary paid into the Club Lloyds account to hit the threshold and have the £5 monthly fee waived. Meanwhile, Club Lloyds Silver and Platinum level accounts cost £11.50 and £22.50 respectively, on top of the £5 Club Lloyds fee, although this is still subject to being waived if you deposit the necessary £2,000 per month.

Lloyds Premier accounts cost £15 per month, but the fee is waived if the account holder pays in £5,000 per month or has £100,000 of qualifying savings or investments. Lloyds Premier perks are worth £100 per month, Lloyds says.

With a basic Club Lloyds account, holders can get three per cent interest on their cash balances up to £5,000, as well as 6.25 per cent interest on funds in a Club Lloyds savings account. Club Lloyds member also get to choose between a 12-month Disney Plus subscription, a Coffee Club and Gourmet Society membership offering 25 per cent off the likes of Caffe Nero and Pizza Express, six cinema tickets at Odeon or Vue cinemas, or an annual magazine subscription. A 12-month subscription to the Disney+ standard plan with ads is worth £4.99 a month, or £59.88 per year.

Meanwhile, a Vue cinema ticket typically costs between £5.99 to £10.99 depending on time and location. This could equate to up to £65.94 of savings. Lloyds Premier customers also benefit from a number of perks, including a Bupa Family GP subscription service, cashback of up to £10 per month and a 0.2 per cent discount on residential new mortgage and remortgage rates.

Vivek Khattri, personal current accounts and overdrafts director at Lloyds said: ‘We know switching bank can feel like a big step, so we’re making it rewarding and easy. ‘Whether you’re after cashback, lifestyle perks like Disney+, cinema tickets or smart travel booking – it’s all simple to manage on the go in our app. Plus switching to Club Lloyds or Lloyds Premier now means you get £200 in your pocket.’