For students and recent graduates, taking advantage of a 0% overdraft is a no-brainer. These accounts offer significant benefits during your university years, but it’s important to remember that they won’t last forever. Once the perks run out and the days of a free overdraft are long gone, it may be time to consider switching to a new bank account.
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Time to Switch Your Bank Account?
Switching your bank account is not only straightforward, but it can also positively impact your finances. Even if you’re still holding on to a student bank account, opening an additional account can help you maximize rewards.
We’ve researched the best bank switch offers currently available in the UK, which range from cash incentives to cashback rewards. The hassle of switching is minimal, especially compared to the potential financial benefits.
Cash Incentives for Switching
As mentioned, some banks provide monetary rewards for switching accounts. At Save the Student, we love a bit of free cash, so we’ve delved into the current offers.
However, there’s more to consider than just the switching incentives. Factors like overdraft availability, interest rates, and foreign transaction fees should also be evaluated.
Top Bank Switch Offers 2024
Here are some of the best bank switching deals available right now:
| Bank | Switching Bonus | Initial Deposit | Cashback | Monthly Fee |
|---|---|---|---|---|
| TSB | £100 | £0 | Up to £15 for 6 months | None |
| Halifax | 0% overdraft for 6 months | £0 | Up to 15% at selected retailers | None |
| Chase Bank | £0 | £0 | 1% cashback for a year | None |
While traditional banks have their advantages, online bank accounts often come with excellent budgeting tools.
TSB Bank Switch Offer
TSB Spend and Save Account
Switch to TSB’s Spend and Save current account and earn £100 plus up to £90 cashback. Here’s what you need to do:
- Make five debit card payments before 27 September 2024 for a £100 bonus.
- Get £15 cashback each month by making 20 debit card payments (online or in-store) for the first six months.
- In April 2025, you can choose between a free one-night hotel stay, six cinema tickets, or a six-month Now Entertainment Membership.
Key Features
- Savings Pots with 2.92% AER interest.
- Save the Pennies: Round up your spending to the nearest pound to save the extra.
- Auto Balancer: Set minimum balance limits.
- My TSB Rewards: Exclusive offers on holidays and essentials.
- In-app tools to support saving.
Things to Note
- Overdraft interest rate: 39.9% APR (variable).
- Fees apply for overseas spending and withdrawals.
- Cashback eligibility excludes withdrawals and Direct Debits.
TSB Savings Pots
TSB’s Savings Pots allow you to create up to five separate pots for different financial goals. You’ll earn 2.92% AER on these pots for the first 12 months, with the interest calculated daily and added monthly.
Other TSB Account Offers
If you opt for the TSB Spend and Save Plus Account, you’ll continue receiving £5 cashback per month after the initial six months of £15 cashback. However, this account comes with a £3 monthly fee but offers fee-free spending abroad.
Halifax Bank Switch Offer
Halifax Current Account
Halifax offers a six-month 0% interest-free overdraft for those switching accounts, although it’s for a shorter period compared to most student accounts. You’ll need to apply and be approved for the overdraft.
Key Features
- Up to 15% cashback at retailers like Sainsbury’s and Costa Coffee.
- Save the Change: Round up your debit card spending to save extra.
- Set contactless payment limits between £30 and £95.
- Mobile app features like card freezing, cheque scanning, and alerts.
Things to Note
- Overdraft interest rate after six months: 39.9% APR (variable).
- Fees for foreign currency transactions and cash withdrawals abroad.
Cashback Extras
With Cashback Extras, you can select specific offers and earn cashback when shopping at selected retailers. Cashback is credited monthly based on your spending.
Other Halifax Account Offers
The Halifax Reward Current Account comes with similar perks but offers additional rewards, such as £5 monthly cash, a cinema ticket, or three digital magazines. The account has a £3 monthly fee, which is waived if you deposit £1,500 per month.
Chase Bank Switch Offer
Chase Current Account
New Chase customers can earn 1% cashback on everyday debit card spending for the first year, up to £15 per month. You don’t need to fully switch accounts to take advantage of this offer, but using Chase for daily spending will help you maximize cashback.
Key Features
- 1% AER interest on your current account balance.
- A linked savings account offering 4.1% AER.
- Round-up account with 5% AER interest.
- No fees for overseas spending or withdrawals.
- Numberless debit card for added security.
- In-app support 24/7.
Things to Note
- No overdraft facility.
- You can only register Chase on one device.
Chase Savings
The linked savings account offers a 4.1% AER interest rate, while the round-up account earns 5% AER on spare change. Both accounts offer easy access to your money whenever needed.
Spending Abroad
Chase does not charge for international card use, making it a great option for travelers. However, daily ATM withdrawals are capped at £500, with a monthly limit of £1,500 outside the UK.
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