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NatWest launches new £200 switching offer - here’s what you can do with the cash

Switching bank accounts can help people to boost their savings pot and more.

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Once the £200 has landed in your account - what should you do next?

It has been a quiet few weeks for current accounts, as we haven’t seen a tempting switching offer from the major providers for some time. 

But, like buses, two then come along at once. 

This week, Lloyds Bank launched its switching offer giving new customers the opportunity to grab a free £175 if they switched current accounts using the Current Account Switching Service (CASS). 

Then today, NatWest revealed its competitive £200 switching offer - beating Lloyds by £25. 

NatWest is also keen to reward new customers with free cash if they switch current accounts using CASS. This deal includes Reward and Select current accounts from NatWest and RBS.

Similar to other switching offers, there are a few terms and conditions* that the customer must follow to get the money. You must apply online or via the app and pay in at least £1,250 to the account. Plus, you’ll need to log in to the app within the first 60 days. Unfortunately, this offer is only for customers that haven't previously received a switching incentive from NatWest or RBS.

If you follow these rules, you’ll get £200 added to your account within seven days. But, once the £200 has landed in your account - what should you do next?

Here, we look at some of the ways you can utilise the money; from growing your savings pot to investing in yourself.

Pay off some debts

Before you do anything, see if you can use the £200 to pay off any debts. Do a money audit and find any debts that are paying a high interest rate. Prioritise those debts first and use the £200 to alleviate any financial stress. 

You could also move these debts to a 0% balance transfer credit card to give yourself more time to pay off the debts with 0% interest. 

Start an emergency fund

If your debts have already been cleared, you can start thinking about saving and the £200 could kickstart your savings journey. Add the money to an instant or easy access account and set yourself a challenge of adding a similar amount each month. 

You’ll then soon have a substantial savings pot which can be used as an emergency fund. It’s a good idea to have this fund as you never know when you’ll be faced with an unexpected expense. An emergency fund takes the pressure off your outgoings and helps to minimise debt. 

Plus, remember that you can switch current accounts regularly, so you could continue to add the cash bonuses to this savings pot. 

Currently, Cynergy Bank has an online easy access account with a variable interest rate of 5.10% and there are unlimited withdrawals, so you can access your money whenever you need it. 

Help stretch your budget a little further by making the most of your savings.

Move money into a high-interest saving account

Once you receive the £200, take this as an opportunity to review any current savings. If you have money earning little to no interest, then it’s worth moving this money and the £200 into a high-interest savings account. 

For example, you might not want to spend the £200 immediately, so moving it into a fixed-rate savings account with a higher interest rate will maximise your savings. Shawbrook has a fixed-rate bond with an interest rate of 5.16% for one year. You’ll need at least £1,000 to open this account and you won’t be able to access the money for 12 months, but it will give you guaranteed interest that can help towards a long-term savings goal. 

Invest in learning

If your finances are already in order, then think about how you could use the £200 to invest in yourself. Is there a course you’ve always wanted to take that will enhance your skills or knowledge?

This could be a cooking class, a financial education course or even a coding course that could open doors to more opportunities in the future.

Invest in your long-term potential and you could turn the £200 into something even more profitable.

* Terms and conditions apply: If you’ve previously received a switching incentive from NatWest and Royal Bank Group, you aren’t eligible. You can only receive this offer once. 18+ and a UK resident. Offer T&Cs, account eligibility and app criteria apply. Offer may be withdrawn or amended at any time.

New bank account deals are offered all the time, so compare bank accounts and see if there is an account that works for you.

About Lucinda O'Brien

As a trained journalist, Lucinda has spent the past 10 years writing and editing content for regional and national titles, including The Mirror, WalesOnline and Manchester Evening News. She is now a personal finance editor and specialises in savings, helping people to make confident financial decisions so they can save for what matters most.

View Lucinda O'Brien's full biography here or visit the money.co.uk press centre for our latest news.