UK households with over £1,000 in bank account could get free £175

People who previously held a first direct product will not qualify.

If UK resident switches to the first direct 1st Account, they could get a welcome bonus of £175. To qualify, switchers must use the Current Account Switch Service, deposit £1,000 within three months of opening the account, and be new to first direct. People who previously held a first direct product will not qualify.

Switchers will get the money within 28 days of all the criteria being met. It comes as Nationwide - the UK's biggest building society - also launches a free £200 offer for bank account holders and customers who are switching to them through the CASS service.

Rachel Springall, a finance expert at Moneyfacts, told the Independent: “Regular savings accounts work differently to easy access accounts, so it’s important customers read through the account’s criteria to ensure it is right for them.” She added: “It is great to see Nationwide offering a lucrative £200 free cash offer to entice customers, which could be useful for those looking for a cash boost amid a cost-of-living crisis.

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“Nationwide offers some competitive current accounts which have various perks which can suit many different needs. Choosing the right current account depends on someone’s spending habits as there are a variety of different accounts out there with their own benefits and charges, so it is worth looking at different options to Nationwide.

“Consumers who are searching for a rewarding bank account may wish to choose one that offers cashback on spending or even on their monthly bills – there are even accounts that pay a monthly reward when certain eligibility criteria is met. On the other hand, those consumers who may dip into their overdraft would be better off choosing an account with a competitive overdraft tariff or even an account with an interest-free buffer.

“Those consumers who plan to make frequent trips abroad can also find accounts that don’t charge them for using their debit card in an ATM or in-store, so they can avoid paying out on transaction fees compared to a more traditional bank account. Switching current accounts is easy to do using the Current Account Switch Service and some banks will pay an upfront free cash incentive to entice customers.

“However, it’s the overall package of an account that should be weighed up before someone commits to switching their current account.”