Lloyds Bank customers handed £200 free cash before Christmas

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Lloyds Bank is offering a free £200 cash payment to customers to boost their bank balance in time for Christmas.

The offer is available to eligible new and existing customers who switch bank accounts in the next seven weeks.

To qualify for the free handout, you must switch to a new Club Lloyds Account, Club Lloyds Platinum Account or Club Lloyds Silver Account using the ‘Current Account Switch Service’ to switch from a bank account held with another bank.

Read more: Households told save £30 now to make £270 for Christmas

The £200 offer is only available until December 10, 2024, so new and existing customers only have a matter of weeks to claim it. The money will be paid directly into your bank account within 10 working days of starting your switch and it will appear as cash credit.

To qualify, customers simply need to following these two steps:

  • Open a new Club Lloyds, Club Lloyds Silver, or Club Lloyds Platinum account

  • Switch three or more active Direct Debits using the Current Account Switching Service

Anyone who has already received a switching offer since April 2020 for switching to any Lloyds, Bank of Scotland or Halifax Bank account, won't be eligible for the current £200 offer.

Lloyds Bank explained: “We make contact with your old bank to arrange the switch. We’ll let you know that your old bank has received your request, and then we can start transferring your payment arrangements across to your new Lloyds Bank account.

“It’ll take a couple of days to switch over your payment arrangements, and make sure your Lloyds Bank account is ready to go for the switch date. If you’re clearing a debit balance at your old account, you’ll need to make sure there are enough funds in your Lloyds Bank account to cover this transfer.”

Once the switch is complete, your balance is transferred and your old bank account is closed - this process should take around seven days. To get the £200 cash payment, you can apply online via the Lloyds Bank website.

Several other banks are also offering similar incentives to customers to make a cash-boosting switch before Christmas.

Nationwide Building Society and First Direct are currently running offers of £175 to switch, while the Co-operative Bank has launch a “switch and stay” offer, allowing eligible customers to get up to £150.

Rachel Springall, a finance expert at Moneyfactscompare.co.uk, says there are some “enticing perks” to weigh up and advises that customers pick an account offering “cashback on spending, high-credit interest or a competitive overdraft tariff.”

Springall said: “Switching current accounts is quick and easy to do and the Current Account Switch Service moves over both any balance and redirects both standing orders and direct debits to a new account.

“However, customers will need to review their online shopping or subscription card details and update them to their new one once it’s all set up.”

She adds: “Whichever account someone chooses, it is imperative they maximise any benefits and ensure they meet any eligibility criteria. Some accounts require minimum funding, a certain number of direct debits or online banking, so it’s vital customers check the terms and conditions carefully to not be left disappointed.”