Two major UK banks, Nationwide and NatWest, are handing out £175 bonuses to attract new customers through simple account switches. These limited-time deals, available as of late November 2025, aim to grow their customer bases amid rising competition in the banking sector.
Why Banks Offer Switching Incentives
Banks use cash bonuses to pull in new users and steal market share from rivals. This tactic has grown popular in the UK, where the Current Account Switch Service makes moving accounts quick and hassle-free, often in just seven working days.
These promotions tie into broader trends, like the cost-of-living pressures pushing people to seek better deals. Recent data from the Bank of England shows over 1.2 million switches happened in 2024, up 15 percent from the year before, as consumers hunt for perks like cash rewards and higher interest rates.
Experts note that such offers can save households money, especially with inflation easing to around 2 percent in 2025. However, not everyone qualifies, and terms vary by bank.
The push comes as UK banks report strong profits. NatWest, for instance, posted £5.8 billion in pre-tax profits for the first three quarters of 2025, boosting their ability to fund these incentives.
Nationwide’s £175 Bonus Explained
Nationwide Building Society rolled out its £175 switching offer in September 2025, targeting new FlexDirect account holders. This deal stands out for adding extras like interest and cashback.
To grab the bonus, customers must switch from another bank using the official service. The payment arrives within 10 days after meeting all steps, as long as no prior Nationwide switch bonus was claimed since 2021. Exceptions apply for those switching from sole to joint accounts or vice versa.
Beyond the cash, FlexDirect provides 5 percent AER interest on balances up to £1,500 for the first year, potentially worth £75 more. It also offers 1 percent cashback on debit card spends, capped at £5 per month, if you deposit £1,000 monthly.
Nationwide emphasizes its mutual status, owned by members, which lets it return value through such deals. Recent surveys rank it high for customer service, with 85 percent satisfaction in a 2025 poll.
This offer ties into Nationwide’s Fairer Share program, where eligible members got £100 payments earlier this year.
NatWest’s £175 Switching Deal
NatWest matches the £175 incentive for switches to its current accounts, launched around October 2024 and still active in November 2025. It targets everyday banking needs with added digital tools.
Eligibility requires using the Current Account Switch Service to move an existing account. The bonus pays out after completing the switch and setting up at least two direct debits.
NatWest sweetens the pot with options like its Reward account, which gives £3 monthly cashback on bills. For those with higher balances, it offers linked savings accounts with competitive rates, currently around 4 percent AER.
The bank has seen a surge in switches, partly due to its full privatization in 2025, which lifted its share price by 15 percent. This financial strength supports generous promotions.
Customer feedback highlights NatWest’s app, rated 4.8 stars in app stores for easy money management.
Steps to Claim Your £175 Bonus
Switching is straightforward, but you must follow exact rules to qualify. Both banks use the free Current Account Switch Service, which handles direct debits, standing orders, and salary payments automatically.
Here are the key steps for either offer:
- Open a new account online or in-branch with Nationwide or NatWest.
- Request the switch from your old bank, ensuring at least two direct debits transfer over.
- For Nationwide, deposit £1,000 and make one debit card payment within 31 days.
- Wait for confirmation; bonuses typically arrive in 7 to 10 days.
Always check eligibility first. If you’ve switched recently or hold accounts with the bank, you might not qualify.
Comparing the Two Offers
To help decide, here’s a quick comparison of the Nationwide and NatWest £175 deals based on November 2025 details:
| Feature | Nationwide FlexDirect | NatWest Reward Account |
|---|---|---|
| Bonus Amount | £175 | £175 |
| Extra Perks | 5% interest up to £1,500 (1 year), 1% cashback | £3 monthly cashback on bills |
| Overdraft | £50 interest-free | Varies by account |
| Eligibility Limit | No switch bonus since 2021 (exceptions apply) | New customers only |
| Switch Time | 7 working days | 7 working days |
| Minimum Deposit | £1,000 within 31 days | None specified |
This table shows Nationwide edges out for interest seekers, while NatWest suits bill payers. Rates and terms can change, so verify on bank sites.
Benefits and Things to Watch Out For
These bonuses can boost your finances quickly, adding up to £250 or more with extras. In a year of steady economic recovery, with UK GDP growth at 1.5 percent in 2025, such deals help offset everyday costs.
They encourage better banking habits, like earning interest on savings. A recent study by Moneyfacts found switchers save an average £100 yearly on fees alone.
However, read the fine print. Switching might affect credit scores temporarily, and overdraft fees could apply if not managed. Also, these offers end soon, with some expiring by year-end.
If you’re eyeing a switch, act fast to lock in the cash. Share your switching stories in the comments below, or pass this article to friends who might benefit.
