Lloyds now offering up to £2,300 cashback to switch account as big banks battle for customers

Lloyds has launched a range of deals to entice people to shift money to the bank, with £2,300 on the table for savvy switchers.

The easiest way to bag hard cash is by switching a current account to the bank. It’s paying £200 for switching to its rewards account, Club Lloyds.

Alternatively a massive £500 is up for grabs if you have income or assets of more than £100,000 and switch to a Lloyds Premier current account.

On top of these deals, Lloyds is paying cashback for stashing money in a fixed rate savings account or one of its investment accounts – to the tune of £1,800.

This means a maximum of £2,300 is available. However, most are unlikely to qualify for the top amount.

We examine the deals and how to bag the cash in more detail below.

> Read more: The best current accounts 

Up to £700 for shifting a current account to Lloyds

Lloyds has launched two separate switch offers. One’s worth £200, while the other’s worth £500, and you can only get one of these.

Make sure you check your eligibility for these deals before going ahead. For example, you won’t qualify for the cash if you’ve bagged a switching bribe from the bank since 1 January 2023.

Switch to a Club Lloyds account – £200

Out of the four deals, this one’s easiest for most to bag.

It’s a standard switch offer, and you need to open a new Club Lloyds account and start your switch by 30 April to qualify.

You must also move over at least three active direct debits and spend £100 on your debit card within 35 days of opening your account.

What to know: Club Lloyds is a reward account. You can choose from one lifestyle benefit a year, such as 12 months of Disney+ or six free cinema tickets. 

You’ll also earn 3 per cent interest variable on balances up to £3,000 when you pay out two different direct debits a month.

There’s a £5 monthly fee, but this is waived for each month you pay in £2,000 or more.

You can also switch to Club Lloyds Platinum or Silver accounts, which give you more perks but have hefty monthly fees.

Switch to a Lloyds Premier account – £500

This account is for those earning at least £5,000 a month or who have £100,000 of qualifying savings or investments with Lloyds.

Lloyds waives the £15 monthly fee each month you meet these criteria.

As with the Club Lloyds account, you must open a Lloyds Premier account and start your switch by 30 April.

You have to switch at least three active direct debits and spend £200 on your debit card within 35 days of opening the account.

What to know: Lloyds Premier is reserved for those with significant income or assets. But it does give you enhanced benefits, such as a Bupa digital GP subscription.

It also offers financial coaching, higher savings rates, and 1 per cent cashback on eligible debit card transactions.

Up to £1,800 cashback for saving or investing with Lloyds

These are two separate deals – Lloyds is paying up to £1,200 cashback for opening a fixed-rate savings account and up to £600 for opening an investment account.

You must switch to an eligible Lloyds current account before taking up one of these deals.

Read all the terms and conditions to check if you qualify. What’s more, it’s important that you don’t make decisions about where to stash your money based on cashback alone.

Especially when it comes to investing, you should research the platform to make sure it suits your needs. For example, are you comfortable with its fees and range of investments? We have guides to the best investing platforms and the best stocks and shares Isas to help you decide which account is right for you.

If you’re keen to start investing, you can also find out more about investing for beginners. 

Open a Lloyds fixed-rate savings account – up to £1,200

There’s between £30 and £1,200 cashback up for grabs when opening a fixed-rate savings account, including 1-year and 2-year fixed-rate cash Isas and 1-year and 2-year fixed bonds.

You’ll get the minimum £30 for depositing between £5,000 and £9,999.99 and the cashback then steps up. You’d need to squirrel away a huge £200,000 to get the maximum £1,200.

The deadline to deposit money is 31 May – and Isa transfers need to be completed by 31 August. You’ll get your cashback by 30 September.

What to know: Watch out for the interest rates on these Lloyds savings accounts, because it’s likely you’ll be able to earn more elsewhere.

For example, Lloyds’ 1 and 2-year fixed-rate Isas both pay 3.25 per cent, while the top easy-access Isa currently available pays 4.5 per cent.

Open a Lloyds investment account or investment Isa – up to £600

Lloyds is paying £30 cashback for every £5,000 funded or transferred up to £25,000, then £150 for each £25,000 above that.

This takes you up to £600 for £100,000 or more.

The deadline to add your funds is 31 May. If you withdraw money or transfer out before 30 October, Lloyds calculates your cashback based on the new value of your pot.

You’ll get your cashback by 20 November.

What to know: Lloyds charges £18 in account fees every six months, which is cheap when compared with investment platforms such as Interactive Investor and Hargreaves Lansdown.

However, platforms such as Freetrade, Prosper and Trading 212 don’t charge account fees at all.

There’s a good range of investments available, including stocks and shares, exchange-traded funds, mutual funds, bonds and gilts.

There’s no charge for trading international shares but bear in mind there’s a 1 per cent foreign exchange rate.

It costs £1.50 to buy and sell funds. Beware the high £9.50 dealing fee for all other investments.