Nationwide has set a new benchmark in the competition for current account customers, offering a market-leading £200 to switch to its range of accounts.
In a double offensive, the building society is also offering a table-topping 8% regular savings account, available to existing current account customers.
Nationwide's offer comes in the same week Lloyds and TSB launched switching offers worth up to £175.
Here, Which? explains how to qualify for Nationwide's deal, whether Nationwide is a good current account provider and how its switching offer compares.
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What can you get for switching to Nationwide?
From today (21 September), new customers can get £200 by switching to one of Nationwide’s three main current accounts:
- FlexPlus:A packaged account costing £13 a month. Benefits include worldwide family travel insurance, mobile phone insurance for your whole family, vehicle breakdown cover across the UK and Europe, and commission-free debit card spending abroad.
- FlexDirect:An online account paying 5% credit interest on balances up to £1,500 for the first 12 months (you'll need to pay in at least £1,000 each month).
- FlexAccount: A standard everyday account where customers can bank online and in a branch for no fee.
To qualify, customers must use the Current Account Switch Service (CASS) to switch, transfer a minimum of two active direct debits to the new account, and once customers begin the application they must complete it within 60 days.
You can open an account on Nationwide’s website, via its online banking page, or through its mobile banking app.
Existing Nationwide customers can also take advantage by switching a current account they hold with another provider to an existing account they hold with Nationwide.
- Find out more: how to switch your bank account
Is Nationwide a good current account provider?
Nationwide is the highest-scoring current account provider on the high street, according to our latest survey of customers.
It achieved a customer score of 79%. Customers rated it highly for its customer service, complaints-handling procedure and online banking service.
The building society also has a ‘branch promise’ to not leave any town or city until at least 2026, and it returned £340m to eligible members through its £100 ‘Fairer Share’ payment.
- Find out more: best banks 2023
How does Nationwide's regular saver compare?
The second prong of the building society’s attack is the launch of a new Flex Regular Saver account paying savers a market-leading 8% AER for 12 months.
Nationwide's account is available to FlexPlus, FlexDirect, FlexAccount, FlexStudent, FlexGraduate, FlexBasic or FlexOne customers, and they can save up to a maximum of £200 each month. Withdrawals are limited to three within 12 months after the account is opened.
The next-best rate for a regular saver is 7.5% from Skipton Building Society, which is also fixed for 12 months, but it's only available to existing members. You can save up to £250 a month.
In total, the building society claims that customers could earn up to £377 during the first year if they qualify for the switching incentive (worth £200), switch to the FlexDirect account (earning 5% interest on balances up to £1,500 for 12 months), and save the maximum amount each month in the new Flex Regular Saver (paying 8%).
- Find out more: best savings accounts 2023
How does Nationwide's switching offer compare?
Nationwide is the latest provider to reveal tempting deals for new customers, with First Direct, Lloyds and TSB also currently offering switching deals.
First Direct £175
This Which? Recommended Provider is offering a £175 bonus to new customers who move to its 1st Account.
The account offers access to a regular saver, which pays 7% AER for 12 months, and a £250 0% overdraft, which is subject to status.
To qualify for the incentive, you need to switch using the Current Account Switch Service, pay in at least £1,000 within three months of opening the account, and must not have been an HSBC current account holder on or after 1 January 2020.
- Find out more: First Direct's regular saver now pays 7% interest - but there's a catch
Lloyds £175
Lloyds is offering new customers £175 to switch to any of its Club Lloyds accounts. You’ll also earn interest of 1.5% on balances between £1 and £3,999.99, and 3% on balances between £4,000 and £5,000.
All Club Lloyds accounts give you the option to pick one lifestyle benefit a year. At the moment that includes a 12-month Disney+ subscription, six cinema tickets, an annual magazine subscription or an annual Coffee Club and Gourmet Society membership – giving you 25% off at Caffè Nero and 25% off your bill at thousands of restaurants.
TSB £150
New TSB customers can get £150 to move to one of its Spend and Save current accounts.
The Spend and Save current account is free and you can earn up to £5 cashback a month when you make 20 debit card payments each month, for the first six months. This is doubled for new customers who switch, meaning they could make £60 instead of £30.
You can also put money aside in up to five savings pots which earn 2.92% AER.
You'll be able to access TSB Marketplace through the account, where you can get up to 4% cashback on stays made through Booking.com and other offers.
- Find out more: Lloyds Bank and TSB launch switching offers – which is worth going for?
