Millions woke up to £200 (PKR73,000) bonus in their accounts

Millions of people in Britain woke up to unexpected £200 payments in their bank accounts this week. In Pakistani Rupee terms this is almost Rs 73,800.

These payments were made to customers in Britian as a form of loyalty benefit to stay loyal to a banking institution called Nationwide building society, which continues to lure new customers with its cash incentives.

A GROWING TREND IN BANK SWITCHING

In a move aimed at attracting new clients, Nationwide has drawn in over 50,000 new customers this year alone, offering £200 to anyone who switches to their accounts. This practice, where banks give away cash bonuses to encourage customers to switch, has become a common strategy in the competitive UK banking market.

Banks in the UK often use cash bonuses to attract new customers from rival banks. Incentives, such as Nationwide’s £200 bonus, have been particularly successful in allowing the company to maintain a dominant position in the current account switching market.

But it’s not just the £200 switching incentive that’s winning over customers. The company also offers £100 annual ‘Fairer Share’ bonus, which is paid to millions of its loyal customers each summer. The scheme rewarded over four million members with the £100 payment this year alone.

OTHER BANKS SEE MIXED RESULTS

While Nationwide continues to flourish, other banks are seeing mixed results, even with the same policy. Co-op Bank reported a solid performance, gaining nearly 10,000 new customers, while Monzo and HSBC each attracted over 8,000 new clients. Meanwhile, traditional banks like Santander, Barclays, and Halifax lost significant numbers of customers, with Santander losing 23,000 and Barclays shedding 18,000.

UK’S BANK SWITCHING BOOM

The trend of switching banks for cash incentives continues to grow. With over 12 million account switches taking place in recent years, moving accounts has never been easier. Banks now redirect all incoming and outgoing payments, such as salaries, Direct Debits, and standing orders, within just seven working days.

For anyone considering switching, experts advise keeping an eye out for bank offers that run throughout the year. With the right deal, customers can bag hundreds of pounds just by making a simple switch.