Bank deals are corkers
BANKS have been competing to win new current account customers by offering introductory cashback offers and interest on balances, and now Virgin Money has raised the stakes by offering customers free wine.
It is offering new current account customers 15 bottles of wine, worth around £ 180, and a further potential £ 225 saving for switching to its Virgin Media TV, broadband and mobile phone package.
New customers will also get interest of 2.02 per cent on balances up to £ 1,000 and a linked savings account paying 0.50 per cent, with no monthly fee.
Other banks have been battling to win current account business but offers can quickly be withdrawn. For example, HSBC Advance pulled its £ 175 switch deal on Friday.
You can still claim £ 125 for switching to NatWest, but act fast as the offer ends tomorrow. This date also applies to NatWest partner bank RBS, which offers £ 100.
The Santander 123 Lite offers ongoing cashback of up to 3 per cent on key household bills, but with a £ 2 monthly fee.
Nationwide FlexDirect pays 2 per cent interest a year on balances up to £ 1,500, although this expires after 12 months.
Other offers are targeted at those who regularly go into the red, with First Direct and M& S Bank offering a £ 250 interest- free overdraft.
Hargreaves Lansdown personal finance analyst Sarah Coles said to examine offers closely. To claim Virgin’s wine and discounts, you must apply online, move your existing account through the current account switch service, register for mobile banking and set up two direct debits.
You also have to deposit at least £ 1,000 into a linked savings account within 31 days. Virgin Media’s phone, media and broadband package is tempting but Coles warned: “Bundling deals together makes it a hassle moving them, leaving you at the mercy of price rises.”
Club Lloyds has now dropped its £ 100 switching bonus, but still pays 0.60 per cent on balances up to £ 4,000, then 1.50 per cent on the next £ 1,000, although nothing on balances above £ 5,000.
It offers cinema tickets and 15 per cent cashback at some retailers. You must set up two monthly direct debits and pay in at least £ 1,500 a month, or incur a £ 3 fee.
Damien Fahy, founder of MoneyToTheMasses. com, said most deals are only open to new customers and advised to check customer satisfaction surveys first: “Is it worth accepting a ‘ bribe’ to end up with a bank you hate?”
Katie Brain, banking expert at the business information service Defaqto, said check if your bank is offering services you are not using, such as reward payments or cashback.
If you dip into the red, check overdraft charges before switching.