NatWest gives £150 to modify banks AND a 7% financial savings charge – however there is a catch

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NatWest has launched a new current account switch deal paying £150 hard cash, plus you get access to a bonus 7 per cent savings rate for a year.

The sting in the tail is that this rate is tied to NatWest’s digital regular savings account, which only allows you to stash up to £150 a month.

But the incentive as a whole is good. It has less hoops to jump through than many other deals on the market, with no requirement to switch any direct debits over. You’ll also get the cash within 30 days of meeting all the conditions, which we run through below.

You can earn easy money by switching bank, but it’s important to check that the new one meets all your needs. For example, Lloyds, NatWest and Santander have all announced upcoming branch closures.

Different banks come with different benefits too, says Alastair Douglas, chief executive of personal finance platform, Totally Money: ‘If you’re interested in switching banks for cash, then make sure you shop around.

‘Some will also offer an interest-free overdraft, cashback on purchases, and other perks.’ 

> Best bank accounts to switch too: Our pick of the top deals 

NatWest has launched a new iteration of its current account switch deal

How does NatWest’s switch offer compare?

Other banks pay more cash to switch, but NatWest doesn’t ask you to move over any direct debits – plus the bonus savings rate is a boon for those keen to build a savings pot.

To get £150 you must:

• Open a NatWest Select or Reward current account and request to switch using the current account switch service by 28 May
• Complete the switch by 16 June
• Pay in £1,250 within 60 days of switching (this can be made of multiple payments and needs to stay in your account for 24 hours)
• Log in to the NatWest mobile banking app

You should get £150 within 30 days of meeting the above conditions.

You can unlock the bonus rate by opening a digital regular saver by 16 June and completing the switch.

NatWest pays 7 per cent interest on balances up to £5,000, made up of a 5.25 per cent standard rate and a 1.75 per cent bonus for 12 months.

You can save between £1 and £150 a month, and you can withdraw money whenever you like with no penalties for doing so.

> Read more: Our five favourite cash Isas – Etoro is paying 4.44%

To maximise what you get out of the deal, saving the top £150 a month will give you £68.04 in interest after a year, according to personal finance expert Kate Steere, from comparison site Finder.

‘With the Reward account, you can get £5 a month extra – £4 for having 2 monthly direct debits worth over £2 and a further £1 for logging in to the mobile banking app once during the month,’ she added.

‘By doing so, you can earn an additional £36 per year after accounting for the Reward account’s £2 monthly fee. That’s £254.04 in your first year, including switching bonus, maximum savings interest and monthly rewards.’ 

> Bank and investing cashback offers to earn a quick £200

What other switching deals are on offer? 

These are the switch deals currently available from other major banks. NatWest’s £150 is on the lower side, so be sure to shop around and check the terms and conditions of each offer.

Barclays is offering up to £1,000 cashback, with £400 to switch to its Premier Account and £600 for moving a cash Isa. But you must earn at least £75,000 and pay in £4,000 within 30 days to get the current account element and  transfer £100,000-plus to bag the full Isa amount.  

These are some of the top deals: 

• Santander: £200 (plus possible £25 Amazon voucher when going through Moneysupermarket*)
• TSB: £200 (£150 for meeting an initial set of conditions, then £50 depositing at least £1,000 in April)
• Nationwide: £175
• First Direct: £175