TSB offers £200 'free cash' in high street bank war

Britain's high street banks are already sharpening their swords for 2026, and TSB has thrown down the gauntlet with a new current account switching offer worth up to £200.

From today, customers moving to a TSB Spend & Save or Spend & Save Plus account and completing a full switch using the Current Account Switch Service (CASS) can earn £150 upfront, with the chance to pocket a further £50 for deposits made in April.

On top of that, customers can earn up to £30 cashback over the first six months for regular spending. The move comes as high street banking has become increasingly gladiatorial, with traditional lenders using headline cash incentives to retain and attract customers against mobile challengers and fintech rivals.

To qualify for the £150 bonus from TSB, new switchers must open their account before March 20, 2026, deposit £1,000 and make at least five debit card payments.

The extra £50 bonus requires a further £1,000 deposit in April, which will be paid by May 31, 2026. All cashback rewards are automatic, provided customers make at least 20 debit card payments each month.

Carys Barnes, head of current accounts and savings at TSB, said: "As we kick off the New Year, many of us will be looking at our finances to make sure we're getting the most from our money.

"Our TSB Spend & Save and Spend & Save Plus current accounts come with a range of fantastic features and benefits and our latest switching offer, worth up to £200, is just one of the many reasons for customers to bank with TSB."

TSB's move comes as other high street banks fight for switchers.

Santander offers up to £200 for new current account customers, provided they pay in at least £1,500 a month and move two direct debits within 60 days. First direct has a £175 switching bonus for eligible accounts.

Nationwide Building Society offers £175 for new FlexDirect, FlexAccount or FlexPlus accounts. Lloyds, Barclays, NatWest, and RBS continue to provide bonuses in the £175-£200 range, often with monthly deposit and usage requirements.

A TSB spokesperson added that the offer was "just one of the many reasons for customers to bank with us this year," as the firm looks to boost growth after a period of subdued customer gains.