Brits urged to do 1 thing before jumping at £175 Nationwide switch offer

Nationwide is offering customers £175 to move their banking, but an expert has advised Brits to do one thing before jumping at the opportunity to land the cash boost. The bank is also offering 1% cashback and 5% interest on savings if you opt for the FlexDirect account. Alastair Douglas, CEO of finance firm TotallyMoney, highlighted that the Fair Share Payment is "an added benefit", as it has been £100 for the past three years, and this is the third time this week that a new current account switch offer has launched.

He added: "Getting the bonus is easy - you'll just need to use the current account switch service, move over two direct debits, pay in at least £1,000, and make one debit card payment within the first 31 days. It's worth remembering that the switching process is easy, with your balance, regular income, outgoing payments and saved payees all being automatically transferred within seven days."

Prior to claiming the £175 from Nationwide, the expert urged Brits to do their homework.

"Before you apply, do your research and compare the other offers on the market," Mr Douglas said.

"Co-Op, First Direct, Lloyds, and NatWest are all paying £175 or more for customers to move their money, and you might find that one of them better suits your needs.

"Benefits might include local branches, better service, improved savings rates, and other perks.

"Just remember that loyalty doesn't pay, but moving banks can."

Tom Riley, the director of Group Retail Products at Nationwide Building Society, said: "It's never been more rewarding to be a Nationwide member and that's why we want to help more people benefit by offering this switching offer!"

It comes as the Bank of England held interest rates at 4% today.

UK inflation stood still last month, remaining at the highest level since the start of 2024.

The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation remained at 3.8% in August, the same as in July.

Lifetime ISA savers have also been "clobbered" with around £102million of withdrawal charges in 2024/25, according to HM Revenue and Customs.

This was an increase from £75.3million the previous year.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, told the PA news agency: "The Lisa has an enormously important role in helping people to save for their first home or retirement.

"However, the latest data shows early exit penalties continue to soar with savers being clobbered with £102million of early exit charges.

"This is up from £75million the previous year and shows the Lisa is a product ripe for reform."