Santander, Lloyds, NatWest and Nationwide new customers offered up to £200 free cash

Savers looking to switch banks could bag some free cash, but they're being warned that these offers might not be around for much longer. Santander is currently offering new customers £150, Lloyds Bank is paying £200, NatWest has a £180 switch offer, and Nationwide is offering £175 to switch.

However, Ian Pagdin, senior lecturer in Banking, Risk Management, Investment and Wealth Management at Sheffield Business School, has cautioned that these generous offers may soon be less so. He said: "It is possible that there may be more attractive offers than this although with the current falling trend of interest rates, this may limit the "generosity" of the offers going forward into 2025."

He suggested that banks could make their offers more appealing by including perks like reduced or zero monthly fees, cashback offers, or even retail vouchers. Despite this, he believes it's "very likely" these switching offers will continue as the current account market is "very competitive" at present.

For those considering a switch, Mr Pagdin advised focusing on your individual needs and ensuring any additional services or perks will actually benefit you. He warned: "Cashback offers are often linked to overall spending and therefore not be quite as attractive as you may think. Other potential possibilities are perks such as travel insurance, but if you don't travel abroad then this may not be attractive to the individual."

He also cautioned savers that a "major consideration" should be the bank's customer service quality. Liz Hunter, director at Money Expert, offered advice for those wanting to switch financial providers.

She emphasised the importance of checking for exit fees or penalties on withdrawing from fixed-term products that could cancel out the benefits of moving to a new account. Ms Hunter also said it's very important to shop around.

She commented: "Don’t rush to switch to the first provider simply because of the benefits being offered and don’t just limit the search to traditional high street banks, as they may usually offer lower savings rates compared to newer, less established providers. Newer and online-only banks often offer more competitive rates due to their lower overheads and innovation, making them worth a look."

Another critical pointer she shared was to confirm that any prospective provider falls under the Financial Services Compensation Scheme. This safeguards your savings up to £85,000 in the event the bank fails.

Ms Hunter added: "Beyond interest rates and benefits, other factors such as the bank’s reputation, customer service and how easy it is to manage your account should also be considered."