The start of a new year is the perfect moment for a financial health check, and for many in the UK, that could mean a lucrative change of bank account. Financial experts have highlighted that three major high street banks are currently offering up to £200 in free cash as an incentive for customers to switch to them using the Current Account Switch Service.
Lucrative New Year Banking Offers
According to the team at Martin Lewis's Money Saving Expert (MSE), Santander, First Direct, and Nationwide are leading the charge with attractive packages that include not just cash bonuses, but also competitive overdrafts and impressive savings rates. These deals are designed to capture the attention of consumers reviewing their finances in January 2026.
The Current Account Switch Service (CASS) guarantees a smooth transition, moving all incoming and outgoing payments from your old account and typically completing the process within seven working days. Your money is protected throughout the switch.
Santander's £200 Edge Account
Switching to the Santander Edge account nets you a £200 bonus. This account also provides 1% cashback on household bills paid by Direct Debit and access to a linked easy-access savings account paying 6% interest.
To qualify, you must pay in at least £1,500 initially, then deposit £500 or more monthly and have two active Direct Debits. The account carries a £3 monthly fee. The associated Edge Saver account offers 6% AER on balances up to £4,000 for the first year, which could earn around £240 in interest.
First Direct's £175 Welcome Package
The First Direct 1st Account comes with a £175 switching bonus, a £250 interest-free overdraft, and a 7% regular saver account. Eligibility requires that you have never held an account with First Direct or opened an HSBC current account since January 2018.
You must deposit £1,000 within the first month, set up two Direct Debits, and make five debit card payments within 45 days. MSE confirms the £175 will be paid by the 20th of the month after you meet all the criteria.
Nationwide's FlexDirect £175 Incentive
Switching to a Nationwide FlexDirect Account rewards you with £175 free cash, a £50 interest-free overdraft, and a 6.5% regular savings account. To get the bonus, you need to pay in £1,500 each month and set up two Direct Debits within 28 days of opening the account.
Nationwide states that the £175 incentive is paid within 10 days of fulfilling all the requirements, making it one of the quicker payouts.
Is a Bank Switch Right for You?
While the prospect of free cash is compelling, it's crucial to look beyond the headline bonus. Consider the account's ongoing fees, interest rates, and whether you can consistently meet the monthly funding and Direct Debit conditions. The MSE website is recommended for comprehensive, up-to-date comparisons of all the latest offers, savings rates, and ISA accounts.
For those ready to organise their finances, these limited-time bank switching deals present a tangible opportunity to boost your savings as we move into 2026.
