Consumers looking to switch current accounts for cash incentives are facing more hurdles than ever before, according to new research by personal finance comparison site finder.com.
The number of unique requirements for bank switch deals has significantly increased over the past four years.
The research, which analysed 86 bank switching offers, found that the maximum number of extra criteria needed to qualify for these deals has risen from two steps in 2020 to six in 2024.
On average, the number of requirements nearly doubled, increasing from 1.6 to 2.9 during this period. Some of the new requirements include transferring direct debits, making multiple debit card payments, joining rewards schemes, and even opening additional savings accounts.
This shift comes at a time when over three-quarters of Brits (76 per cent) have never switched accounts to take advantage of a deal, reveals finder.com. Among the reasons for not switching, 12 per cent cited the increasing number of requirements, while 14 per cent felt the rewards weren’t worth the effort.
Serial switchers
Experts suggest that banks are introducing stricter conditions to deter ‘serial switchers’ – customers who repeatedly switch accounts just for the incentives. For example, NatWest gained more than 94,000 new customers through a £200 switch deal in mid-2023, but lost more than 50,000 customers just months later.
Louise Bastock, a money expert at finder.com, advises consumers to carefully read the terms and conditions and ensure they can meet the eligibility criteria.
“With so many hoops to jump through these days, the key to bagging the most cash is preparation. I’d urge people to thoroughly check the eligibility criteria and work out in advance whether you can meet them. Organise your finances so any direct debits or minimum monthly transactions are being processed on time, and pop any deadlines in your calendar so you can keep track of your progress.”
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