Lloyds launches £100 bank switch bonus. Here’s how to get it

Twenty pound notes in back pocket of jeans

If you switch to a Club Lloyds current account, you can now pocket a cool £100. So how does the Lloyds switch offer work? And who is eligible for the bonus? Here’s everything you need to know.

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How do you get the Lloyds switch bonus?

To qualify for the Lloyds switch offer, you must switch to either a new Club Lloyds or Club Lloyds Platinum current account.

You must use the official Current Account Switch Service too, which will automatically close your old account. Under this service, any existing payments in and out of your account, such as your salary, will be transferred over for you. 

If you qualify for the offer, £100 will be paid into your new Lloyd’s bank account within 10 working days. The Lloyds switch offer ends on Tuesday 19 October. If you switch accounts after this date, you won’t qualify for the cash. 

What else should you know about the Lloyds switch offer?

Unlike a number of other bank switching deals, such as Nationwide’s £125 bonus, this Lloyds switch offer doesn’t require you to move over any direct debits as part of the switch.

However, in order to qualify for the bonus, you must open a new account. This means that if you already have a Club Lloyds account, you can’t benefit.

You also can’t get the bonus if you’ve bagged an incentive for switching to another Lloyds account since April 2019. The same restriction applies if you’re switching to a joint account and your partner has already received a Lloyds switch offer bonus.

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Which Club Lloyds account is best?

Under the Lloyds switch offer, there’s a choice of two accounts to switch to. To decide on the best account for you, it’s worth studying the benefits of both accounts. Here’s what they offer.

Club Lloyds

The Club Lloyds account pays in-credit interest on your balance. You earn 0.6% AER variable interest on your balance between £1 and £3,999.99 and 1.5% AER interest on your balance between £4,000 and £5,000.

You can also choose an annual benefit. There’s a choice of six cinema tickets, a digital Gourmet Society membership, an annual magazine subscription, or 12 digital movie rentals through Rakuten TV. The account is fee-free as long as you pay in at least £1,500 each month. If you don’t, you’ll be charged a £3 monthly fee.

Club Lloyds Platinum

The Club Lloyds Platinum account is a packaged bank account. It comes with a number of benefits in return for a £21 monthly fee.

With this account, you get AA Breakdown cover, mobile phone insurance (covering loss and theft up to £2,000), worldwide family travel insurance, and the other benefits listed for the Club Lloyds account above. You also earn the same in-credit interest.

On top of the £21 monthly fee, you’ll also be charged a £3 monthly Club Lloyds fee if you don’t pay at least £1,500 into your account each month.

Can you switch even if you won’t use it as your main account? 

Most banks offer switching incentives to persuade you to move your custom permanently. The hope is that you’ll become a loyal customer and stick with your new bank for as long as possible. It’s the reason why many switch offers stipulate that you must make a minimum monthly payment into the account, or switch over a minimum number of direct debits.

However, there’s no accurate way for any bank to determine whether you are switching your main account. So, with this Lloyds switch offer, you don’t have to switch your main account to get the cash.

That being said, both Club Lloyds accounts do require you to pay in at least £1,500 each month to avoid a £3 fee. So if you don’t have your salary paid into it, this could be an issue.

However, there is a way around this. That’s because there’s nothing stopping you from making a £1,500 payment in and out of your account during the same month. Do this, and you won’t have to pay the £3 fee.

For more information on the bank switching process, see our article on how to switch bank accounts.

The post Lloyds launches £100 bank switch bonus. Here’s how to get it appeared first on The Motley Fool UK.

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