NatWest launches new £200 switching offer and increases savings account rate

The battle to attract current account customers is heating up with another bank launching a new switching offer.

NatWest said new and existing customers switching their main current account to the bank will receive £200 within seven days of meeting the eligibility criteria of logging into mobile banking and paying in £1,250.

The bank is also increasing the rate of interest on its digital regular saver account from 5% to 6% from Tuesday.

The 6% rate is paid on balances up to £5,000 and customers can save up to £150 every month.

Customers can also take part in a new savings prize draw.

NatWest savings customers can enter the draw by turning on the bank’s “round ups” feature, which saves the change to the nearest pound when a transaction is made.

There are 33 prizes available, with three top prizes of £10,000 and 30 of £500. The draw closes on April 21 2023.

Lewis Broadie, customer manager, NatWest, said: “We are welcoming customers to the bank with our highest ever switcher offer of £200.”

Rachel Springall, a finance expert at Moneyfacts.co.uk, said: “It’s exciting to see such a generous free cash switching inventive launched onto the market at time where consumers may well be looking to move their bank account for a cash boost.

“NatWest may be a good choice for customers looking to earn extra rewards throughout the year and savers may be enticed by the prize draw and the competitive linked regular saver.

“In comparison, Lloyds Bank are currently offering a £200 switcher incentive for those switching to their platinum or silver current accounts, both of which have their own bundle of incentives, such as insurance add-ons and cashback.

“First direct are offering £175 for those that switch and TSB will pay £125 with their spend and save account which pays monthly cashback.

“All these options are worth exploring in depth before starting the switching process as the right account depends on someone’s individual circumstances.

“Switching offers don’t tend to stay around for long – a good example is the Santander £200 free cash offer which ended last week.”