Is switching banks worthwhile? Lloyds Bank is back with a £175 bank switch bonus

Customers who wish to switch their existing account to one of Lloyds Bank's Club accounts can do so for £175

We examine if it makes sense to take advantage of the bank switching bonus.

A new bank switching bonus has been introduced by Lloyds Bank in an effort to attract clients to its Club Lloyds account line.

Along with a number of other benefits, the high-street lender is giving out 175 to both new and existing clients who open an account with Club Lloyds.

Customers can receive up to £175 in free cash, making it the fifth bank switching offer available right now. It follows closely behind TSB Bank's 160 bonus, Nationwide's 175 switching incentive, First Direct's 175 deal, and Co-operative Banks' 150 offer.

Even though Lloyds Bank's most recent offer isn't as generous as the 200 offered in late 2024, the bank is still very well-liked, so switchers who wish to take advantage of the 175 bonus will need to move quickly.

We go over all the information you require regarding Lloyds Bank's switching bonus and how it stacks up against other options.

What's available in the Lloyds Bank 175 switching deal?

When you convert your existing account to one of Lloyds Bank's Club Lloyds accounts, you will receive a 175 bonus.

This covers the Club Lloyds account (3 per month), Club Lloyds Silver account (11 per month), or Club Lloyds Platinum account (22 per month).

While both new and existing Lloyds customers can take advantage of the offer, those who already have an active Lloyds account will not be eligible.

You need to: in order to be eligible.

In order to transfer your bank account to a new Club Lloyds current account, you must have at least three active direct debits from your previous account. You can open a Club Lloyds account (3 monthly fee), Club Lloyds Silver account (14.5 monthly fee), or Club Lloyds Platinum account (25.5 monthly fee). Standing orders and recurring credit card payments are not included. As long as they open a new Club Lloyds account, Club Lloyds Platinum account, or Club Lloyds Silver account and fulfill the requirements listed above, current customers are eligible for the 175.

After the switch is finished, the £175 will be credited to your account in three days.

Customers must switch by April 1st to receive the free money as Lloyds Bank's 175 incentive is only available for a short period of time.

There are three additional "monthly Club Lloyds fees" associated with Silver and Platinum accounts. If you make a minimum monthly deposit of £2,000 into your account, this fee will be waived. By doing this, you can also avoid the three monthly fees associated with the Club Lloyd's account. In other words, if 2,000 is deposited each month, the Club Lloyd's account is effectively free to hold.

Starting on June 2, 2025, the three-month fee will rise to five.

The switch can be made in-person at a Lloyds branch, online at the Lloyds website, or through the company's mobile banking app.

This offer will not be available to customers who have already received a switching incentive from Bank of Scotland, Halifax, or Lloyds Bank since April 2020.

A 6.25% Club Lloyds Monthly Saver is also included with the Club Lloyds accounts. You can access your money whenever you want and save up to £400 per month. There are additional benefits associated with the accounts. You can select a lifestyle benefit, such as a digital membership to the Coffee Club and Gourmet Society, a complimentary 12-month subscription to Disney Plus, or movie tickets from Vue or Odeon.

The Club Silver and Club Platinum accounts also provide fee-free spending overseas, AA breakdown family coverage, mobile phone insurance, European family travel insurance, and coverage for winter sports and other activities.

What is the comparison of the Lloyds Bank 175 switch?

There are five bank switching offers available right now. What is Lloyds Bank's position in relation to the others?

It's worth considering the extra benefits that could make one switching offer stand out from the others, as three of the five available deals are giving customers 175 dollars.

For example, First Direct offers fee-free spending overseas and a 7 percent regular saver attached, making it the best option if you're looking for the best savings rate. While Lloyds Banks Club Lloyds accounts have a three-month (soon to be five-month) fee, this account is also free to maintain.

Nationwide Building Society is well-known for its 100 Fairer Share Payment, which it has provided for two years in a row, in addition to providing switchers with 175 shares. Although there is no assurance that the bonus will be paid in 2025, Debbie Crosbie, the CEO of Mutual, stated at the end of the previous year that the company was "well positioned" to make the payment again.

In addition to paying more cash than TSB Bank and Co-op Bank, Lloyds Bank's deal is also more straightforward than those of the other banks.

Switching should, in the end, be about what benefits work best for you and an account that satisfies all of your needs, not just the bonus that is being offered.