Nationwide and Lloyds Bank customers waking up to free £200 for Christmas

In a switching incentive office, Britain's biggest building society is offering free cash, while Lloyds Bank also has a carrot dangling for new customers.

Nationwide and Lloyds Bank customers are waking up to free payments of up to £200 for Christmas.In a switching incentive office, Britain's biggest building society is offering free cash, while Lloyds Bank also has a carrot dangling for new customers.

As well as the upfront switch cash, with Club Lloyds you can choose one of the rewards above each year. Do note there's a £3/month fee unless you pay in £2,000+ a month. You also get access to a linked regular saver paying 6.25% fixed interest for a year on up to £400/month (maxed out, it's £161/year interest).

Nationwide is offering £175 as well, plus 5 per cent interest on up to £1,500 balances and 1 per cent cashback for 12 months. To qualify for switch bonuses you must complete a full switch of an old account using the Current Account Switch Service and you do this through the new bank you're switching to.

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Money Saving Expert said: "Nationwide is offering a host of perks to newbies switching to its FlexDirect account. On top of the £175 free cash, there's 5% AER interest on current account balances up to £1,500 for a year (maxed out that's £75) and 1% cashback for 12 months up to £5/month.

"You can also get the free £175 by switching into Nationwide's £13/month FlexPlus packaged account or its bog-standard FlexAccount – though the 5% interest and 1% cashback aren't available with these accounts."

The service automatically moves across all payments, Direct Debits and standing orders to the new account, and closes the old one. It's also worth downloading a few years' statements from your old bank before switching – in case you need them in the future.

Money Saving Expert said: "Banks sometimes offer bonuses – free cash, boosted savings rates or other perks – to new customers who switch in an existing current account to a new current account with them. Essentially, banks want your custom and switch bribes are a double win for banks – you not only join them, but you leave one of their rivals."