Latest current account switching offer: earn £125 cash

Switching banks has never been easier and a number of banks offer cash or vouchers as a way to entice new current account customers.

The best deal currently pays £125 although banks have been known to offer up to £250. However the accounts may not necessarily be the best on the market.

You must switch using the Current Account Switching Service (CASS) to get the perks. The switch should only take seven working days.
First Direct 1st Account – £125 cash if you apply via MoneySavingExpert

First Direct* has been offering a cash incentive since 1991, and was one of the first banks to do so. It currently offers £125 those who switch to its 1st current account* if you use MoneySavingExpert's link. It offers £100 if you go to it direct.

You will not receive the cash incentive if you have previously had a First Direct account.

This internet and telephone banking offshoot of HSBC has a reputation for great customer service.

This, along with its cash offering, makes the current account an attractive option for those looking to switch. To qualify you must pay in at least £1,000 within three months.

The account costs £10 a month, but this fee is waived for the first six months if you pay in £1,000 a month, maintain a monthly balance of £1,000 or hold another selected First Direct account.

The account does not pay interest but it does allow customers to open a regular saver, which pays 5pc on monthly deposits of between £25 and £300. This rate is paid for 12 months.

If you're not happy with First Direct, it promises to pay another £100 if you leave after six months but before a year.

M&S Current Account – £125 M&S gift card* and £5 a month if you stay

M&S Bank's current account has been branded a "major challenger to the dominant high-street banks". It has no monthly fee and a £100 interest-free overdraft, and comes with a £125 M&S gift card.

For every month you pay in £1,000, M&S adds an extra £5 to the gift card as long as you keep two direct debits active. This is paid for a year, so you could earn up to £185.

Account holders will also receive one loyalty point for every £1 spent using the debit card in an M&S store or online.

For every 100 points earned, customers receive £1 in M&S vouchers, which are sent to the account holder each quarter.

Plus, account holders get access to the M&S monthly saver which pays 5pc interest on a maximum pay-in of £250 a month.
Halifax Current Account – £75 cash plus £3 a month

Halifax offers £75 to new customers who switch to one of its current accounts - although it has been known to offer more. It promises to pay within three days of the completed switch.

Customers can earn a further £3 a month with the Reward Current Account. A minimum sum of £750 must be paid in per month and two direct debits must be set up.

Halifax's two other current accounts are less attractive. The current account is basic and offers no reward.

Halifax's packaged account – Ultimate Reward Current Account – offers comprehensive worldwide travel cover and mobile phone insurance, but charges £15 a month. Customers can get this down to £12 if they pay in £750 a month and set up two direct debits.

Halifax promises to pay the bonus with seven days.
The banks that offer non-cash incentives

There are a number of high interest current accounts available that do not offer cash bonuses but pay up to 5pc interest.

Nationwide's FlexDirect account pays 5pc on balances up to £2,500 for the first 12 months to customers who are able to pay in £1,000 a month.

Santander's 123 current account* offers 1.5pc to customers with savings up to £20,000 and up to 3pc cashback on household bills. Two direct debits must be set up and the account must be credited with £500 a month. The account costs £5 a month.

Lloyds' Club current account pays 2pc on balances up to £5,000. You must pay in a minimum of £1,500 each month to avoid a monthly £5 fee.

Tesco Bank offers 3pc on £3,000.

If you're unsure which of the above accounts is right for you, Telegraph Money has analysed the rates to work out when it would be best to ditch and switch.