Lloyds and NatWest among 6 banks offering up to £200 free cash in switching deals

Britain's high street banks are battling it out to lure new customers with bumper switching bonuses, with up to £200 on offer for those willing to move their current accounts. Six big names, including Nationwide, NatWest and Lloyds, have launched or renewed switching incentives this month, handing out hundreds of pounds in free cash along with extra perks such as cashback and savings rates well above the market average.

Nationwide Building Society is leading the charge with a £175 bonus for customers who complete a full switch through the Current Account Switch Service (CASS). New joiners can move to one of three accounts: FlexPlus, FlexDirect or FlexAccount. The FlexDirect account offers 5% AER interest on balances up to £1,500 for the first 12 months and 1% cashback on debit card spending capped at £5 per month.

When added together with the switching bonus, cashback and interest, savvy savers could pocket nearly £400 in the first year.

Tom Riley, Nationwide's Director of Group Retail Products, said: "It's never been more rewarding to be a Nationwide member and that's why we want to help more people benefit by offering this switching offer."

The building society, consistently ranked top for customer service, has already attracted over a million new customers through CASS since 2013.

But Nationwide isn't the only bank dangling cash to tempt switchers. Lloyds Bank is paying £200 to those who move their existing account to a Club Lloyds or Lloyds Premier account, provided they set up at least three direct debits.

NatWest and RBS are both offering £175 to new customers who switch to either a Select or Reward account, as long as they pay in £1,250 and log in to the mobile app within 60 days.

Elsewhere, First Direct is offering £175 for switching to its popular 1st Account. Customers must pay in at least £1,000, set up two direct debits or standing orders, and make five debit card payments within 45 days.

The Co-operative Bank's incentive stands at £100, but customers can earn a further £75 by meeting the same requirements over the next three months, taking the total to £175.

Financial experts say the time is ripe for consumers to consider switching. "The process is quick and hassle-free, with your balance, regular income, payments and saved payees automatically transferred within seven days," said Alastair Douglas, CEO at TotallyMoney.

"But before you apply, do your research. Different banks offer different perks, so the best deal depends on what you value most."

Kate Steere, money expert at Finder, added that while Lloyds is offering the highest single payout at £200 for certain accounts, Nationwide's £175 package may actually deliver the best value over 12 months once interest and cashback are factored in.

"If you max out the savings and cashback alongside the switching bonus, you could be looking at nearly £400 in your first year," she said.