Lloyds paying free £200 into customer bank accounts as 'cash credit'

Lloyds Bank has issued a 10-day warning over £200 payments landing in accounts. Ahead of Christmas, the bank currently offers a free £200 switching incentive to those opening an Club Lloyds, Club Lloyds Silver, or Club Lloyds Platinum account.

A customer contacted the provider over X to ask: "I’ve just opened a Lloyds account, when do I receive the £200 incentive?" In response, the bank said: "If you have met all the qualifying criteria then the offer will be paid directly into your account within 10 working days of you starting your switch."

Lloyds also clarified that the payment "will appear as a cash credit" in the customer's account. From 2 October, Lloyds Bank will offer a £200 bonus when you switch your current account to one of its Club accounts. This includes the Club Lloyds (£3 a month), Club Lloyds Silver (£11.50 a month) or Club Lloyds Platinum account (£22.50 a month).

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The deal is available to new and existing Lloyds customers – but you won’t be eligible if you already hold a current account with Lloyds Bank. To be eligible for the £200 cash, you must switch to a Club Lloyds current account using the Current Account Switch Service (CASS) by 10 December 2024, and close your existing account and move over at least three active direct debits

You won’t be eligible for this deal if you’ve received a switching incentive from Lloyds Bank, Halifax or Bank of Scotland Current Account since April 2020. A Club Lloyds account does come with fees, however, which will eat into the switching bonus - although with the basic account, it can be circumnavigated.

The basic account charges £3 per month, unless customers deposit £2,000 each calendar month. The Club Lloyds platinum account, meanwhile, comes with a £22.5 monthly fee, which has gone up from £21, albeit with £3 deducted if you pay £2,000 in a month into the account.