Get something back from your bank: best current account freebies and incentives
Switching current account is now (relatively) quick and painless thanks to the introduction of the Current Account Switch Service, which comes with a guarantee that your move will be completed within seven working days.
Since the scheme launched last year, 1.2 million people have used the service to switch their account to another provider.
In response banks and building societies have been jazzing up their current account offers in order to attract new customers.
So let's take a look at the best incentives and freebies available right now that might be worth switching for.
M&S Bank
M&S Bank has a fee-free current account which comes with a £100 gift card freebie to spend in store plus a free £100 overdraft.
Or you can get £150-worth of gift cards to spend in store or online when you open and switch to its Premium Current Account or Premium Current Account with Insurance.
The Premium Current Account costs £10 a month but comes jam-packed with £222-worth of vouchers and gifts each year.
With the account you'll get £40 a year in M&S vouchers to spend in store, £127-worth of hot drinks vouchers for the M&S Cafe, exclusive M&S offers, £45-worth of treats and delights vouchers, a birthday gift worth £10 and the chance to earn M&S loyalty points as you spend which can be converted into even more M&S vouchers.
Clearly you need to be a fan of M&S to go for this account, but you also get access to preferential rates on products, access to an exclusive monthly savings account and a £100 interest-free overdraft (£500 overdraft in total).
With the Premium Current Account with Insurance you'll get everything above plus worldwide multi-trip family travel insurance for £17.50 a month.
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First Direct
First Direct is offering a £100 cash incentive to new customers that sign up to its 1st Account.
It comes with a £250 fee-free overdraft and the option to speak to someone in the UK about your account 24 hours a day, seven days a week, 365 days a year. But the account costs £10 a month unless you pay in £1,000 monthly or have another First Direct product.
First Direct is so confident in its customer service that if you choose to leave with the first year it will pay you another £100.
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The Co-operative Bank
The Co-operative positions itself as an ethical bank, so its cash incentive is a little bit different to the rest.
It will pay a £100 cash bonus to new customers that switch to one of its current accounts, but will also make a £25 donation to a charity of your choice.
Charities eligible for the donation include Action Aid, Amnesty International, Carers Trust, Help the Hospices, Oxfam, Water Aid and the Woodland Trust.
The offer applies on the Co-op's Standard Current Account, Current Account Plus and Smile Current Account.
All three will get you exclusive preferential rates on loans and savings but the Current Account Plus comes with a £200 fee-free overdraft, while the Smile Current Account comes with the chance to get a £500 fee-free overdraft.
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Halifax
Halifax is also offering new customers £100 when they switch to one of its current accounts, but unlike other welcome bonuses you get the cash as soon as you apply.
The bank has three accounts you can pick from.
There's the no frills Current Account, the Reward Current Account which pays you £5 a month when you pay in £750, stay in credit and have two direct debits set up, or the Ultimate Reward Current Account which comes with a host of extras like worldwide multi-trip family travel insurance, AA breakdown cover, and mobile phone insurance for £10-£15 a month.
Online banking customers will also be eligible for Cashback Extras. This is a reward scheme which allows you to earn up to 15% cashback when you spend at certain retailers online.
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Nationwide
Nationwide operates a slightly different cash switching offer that works on referrals.
It applies when an existing FlexAccount, FlexDirect or FlexPlus customer recommends a Nationwide current account to someone they know. If that person switches their main account to Nationwide using the Current Account Switch Service, both sides will receive £50. You'll be able to refer up to ten people a year meaning you could bag £500.
So while you don't get a guaranteed cash bonus as soon as you complete a switch, like with First Direct, Halifax and the Co-operative, you have the potential to earn much more than with all of them combined if you can convince ten more to join you. And it shouldn't be too hard considering the accounts are packed with incentives that are quite appealing by themselves!
The FlexAccount comes with free European multi-trip travel insurance and a three-month interest-free overdraft.
With the FlexDirect Account you can earn 5% interest on balances up to £2,500 for 12 months. That's a better rate than any traditional savings account is offering at the moment. The account also comes with a 12-month fee-free overdraft.
Alternatively the FlexPlus account pays an ongoing 3% credit interest on balances up to £2,500 and comes with a bunch of extras like worldwide family multi-trip travel insurance, UK & European breakdown cover and worldwide family mobile phone insurance for £10 a month.
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TSB
TSB also thinks credit interest is a decent incentive to lure customers in.
Like Nationwide it's offering a market-leading rate of 5% but on balances up to £2,000 with its Classic Plus Current Account.
Tipping the scales in TSB's favour though is that the rate won't fall away after 12 months so you won't have to worry about moving your money around.
The bank will also allow you to have two accounts meaning you could actually earn 5% on £4,000.
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Lloyds Bank
Lloyds Bank is offering one lifestyle freebie each year with its Club Lloyds Current Account.
You can choose either an annual Gourmet Society membership, six Vue cinema tickets a year or an annual print or digital magazine subscription from a choice of 13 titles including ELLE, Esquire and Runner's World.
The account also offers tiered interest of up to 4% on balances of up to £5,000, plus you'll also get exclusive access to Club Lloyds products, a £100 fee-free overdraft and the chance to earn up to 15% cashback when you shop online via the Lloyds' Everyday Offers website and use your debit card.
However you'll be charged a £5 monthly fee unless you pay in at least £1,500 each month.
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Santander
Santander offers a combination of cashback and credit interest incentives to attract switchers and keep them.
The 123 Current Account offers 1% on balances from £1,000, 2% on balances from £2,000 or 3% on balances from £3,000 all the way up to £20,000 – which is the best rate you can get on your cash right now without locking it away for five years.
The account also offers 1% cashback on water, Council Tax and Santander mortgage direct debits, 2% on gas and electricity bills and 3% on mobile phone, home phone, broadband and paid for TV packages.
Santander's offers are ongoing apart from a fee-free overdraft that will only last four months. However, you will have to pay £2 a month for the account. You'll also need to put £500 in a month and set up two Direct Debits from the account.
Bank of Scotland with Vantage
By adding Vantage to your Classic Account you can earn up to 3% AER on your account on balances between £3,000 and £5,000.
When you use your Bank of Scotland debit card, you could earn up to 15% cashback at the kind of places that you like to shop. You also have the chance to be paid back for something that you've bought on your card up to the value of £500 each month.
To earn the interest, you need to pay in a minimum of £1,000 a month and stay in credit.
RBS/NatWest
The Royal Bank of Scotland and NatWest offer a pair of lifestyle incentives with their packaged current accounts.
The RBS/NatWest Select Silver Account, which costs £10 a month, comes with a tastecard, European travel insurance, preferential rates from their Travel Money service and mobile phone cover for up to two handsets. You'll get 25% cashback on tickets for the theatre, dance, opera and concert performances throughout the UK and Ireland too.
The RBS/NatWest Select Platinum Account, which costs £16 a month, comes with two National Trust family day passes and tastecard membership as well as a £100 fee-free overdraft, worldwide travel insurance, mobile phone insurance for up to two handsets and UK breakdown cover.
RBS and NatWest also have a scheme called Cashback Plus, which is available across the banks' range of current accounts and allows you to earn 1% cashback on your debit card spending.
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Post Office
The Post Office is offering a one night hotel break for two at one of 250 locations throughout the UK. Just make sure you apply for an account by 30th November and complete a partial or full switch by 31st December 2014.
There are two accounts you can pick from.
You have the no frills, fee-free Standard Account or the Control Account designed for those who want to be protected from bank charges, which costs £5 a month.
Currently, 239 branches in the UK offer access to these accounts. Find your nearest one with the Post Office branch finder.
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Read more on current accounts on AOL Money
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