NatWest has launched its first ever refer-a-friend scheme, offering some existing customers a chance to pocket up to £500 for recommending its current accounts to friends and family.
The bank has picked 300,000 customers at random to pilot the new scheme.
It promises £100 cash each, for you and a friend, when they take out a Select, Reward, Reward Silver, Reward Platinum or Reward Black account.
Win Win? NatWest’s new pilot could earn eligible customers up to £500
The deal is on the table until April 20 but, if successful, NatWest says it may extend the scheme to all current account customers.
The high street giant launched its first cash incentive in nearly a decade earlier this year, offering £125 cash to new customers,
The incentives follow bumper current account customer losses last year.
Current Account Switch Service figures, released in January, showed a net loss for the bank of nearly 14,000 customers in April to June 2017 – more than any rival.
There are a handful of other banks offering similar referral schemes.
Similarly Nationwide pays £100 to existing customers and £100 to those they refer who go on to switch to one of its current accounts. Existing customers can pocket up to £500 per year through the scheme.
TSB recently renewed its £75 cash bonus paid to new and existing customers.
The promotion runs until April 9, and offers the chance to recommend up to five customers – earning a total £375.
David Crawford, head of NatWest current accounts, said: ‘Our customers recommend our current accounts all the time and this is a small way we are thanking them for doing so.
‘Only three per cent of UK customers switch banks every year and we believe more customers would benefit from switching to NatWest, especially with our range of Reward accounts that enable customers to earn two per cent cashback and our award-winning mobile app.’
How can eligible Natwest customers take advantage?
The 300,000 customers chosen at random have been notified via e-mail.
You can then forward the email on to friends and family who can use a link enclosed to sign up.
You can refer an unlimited number of friends but the bank caps rewards at £500. There are also some hoops to jump through.
Once your recommended friends or family members have switched, you can claim your cash through a link within this original email. Cash will be paid be the end of May 2018.
You can find out more here.
To be eligible, new customers referred using the scheme must use the CASS service to move banks and deposit at least £1,500 to their account before April 20.
They must also have logged into online or mobile banking by this date.
What’s on offer? NatWest offers 2% cashback on household bills with its Reward perk
Is it worth switching to NatWest?
NatWest offers a basic Select Account, plus a range of paid-for accounts.
This is Money’s top pick is its Reward Account which pays two per cent cashback on household bills.
According to the bank, this earns the average customers £83 per year (£59 after its £2 monthly fee). The account requires a monthly deposit of £1,500.
As long as you log on to online banking once every three months, you earn two per cent back on council tax, mobile, TV, water, gas and electricity and broadband bills.
It also pays one per cent back on spends with certain partner retailers.
The NatWest Reward Platinum current account is also worth considering and features in This is Money’s round-up of our favourite packaged bank accounts.
Any more lucrative alternatives for account switchers?
When looking simply at the cash incentive, switchers can earn slightly larger cash carrots elsewhere.
Currently HSBC offers the biggest upfront payout at £150 on its Advance Account (with another £50 after a year).
Halifax also currently offers a £125 cash to switch to one of its accounts, however the promotion finishes on March 19.
The major appeal of the NatWest Reward account is also that you continue to earn something back from the account after the first year is up.
The Flagship 123 Account however comes with a £3 monthly fee, and now cash incentive to switch.
If you are in the market for a new current account you can read more about This is Money’s top picks in our Five of the Best Bank Accounts guide.
THIS IS MONEY’S FIVE OF THE BEST CURRENT ACCOUNTS