Barclays launches £175 switching bonus for new current account users

In a recent bid to attract new customers, Barclays has announced a £175 bonus for individuals who switch to their bank using the Current Account Switch (NYSE:) Service (CASS). This offer is available until November 30th, 2023, and is part of a competitive push among UK banks to expand their customer base.

Customers who open an individual Barclays Bank Account with the Blue Rewards Scheme or a Premier Current Account through the Barclays app and transfer at least two active direct debits before the deadline are eligible for the bonus. The incentive is designed to draw in new clients by offering tangible financial benefits. To qualify, customers must not have held any Barclays current accounts since November 1, 2023, cannot hold certain other Barclays accounts, and must be UK residents aged 18 or over.

The Barclays Bank Account comes with an optional arranged overdraft and tools for financial management. The account requires a £5 monthly fee for the Blue Rewards Scheme but offers £5 cashback for maintaining two or more direct debits. Additional perks include shopping cashback and discounts on other Barclays products. Customers must deposit a minimum of £800 monthly to access the Rainy Day Saver account, which boasts a 5.12% return on balances up to £5,000.

The Premier Current Account targets higher earners or those with substantial savings or investments at Barclays. It provides exclusive rates on mortgages and savings, higher ATM withdrawal limits, and access to Barclays Avios Rewards. The bonus will be credited within 28 working days after completing the switch.

Barclays scored 74% in a recent customer survey, placing it among the top ten banking providers. In comparison, competitors such as Nationwide, First Direct, and Lloyds (LON:) Bank are also offering cash incentives ranging from £175 to £200 to entice new current account holders. Each bank presents unique account features and conditions to differentiate itself in the market. For example, Lloyds Bank includes lifestyle benefits with its Club Lloyds account, while Nationwide offers three different types of current accounts tailored to various customer needs.

InvestingPro Insights

According to InvestingPro data, Barclays (BARC) has a market capitalization of $24,813.39M and a low P/E ratio of 3.88, indicating that the stock is trading at a low price relative to its earnings. In the last twelve months as of Q3 2023, the company generated a revenue of $28,980.31M, which represents a growth of 0.55%.

In terms of InvestingPro tips, it’s worth noting that Barclays has raised its dividend for three consecutive years, indicating a commitment to returning capital to shareholders. Also, despite some analysts revising their earnings downwards for the upcoming period, the company is still expected to be profitable this year.

These insights could be beneficial for potential investors who are considering Barclays’ recent initiatives to attract new customers. Additionally, the company’s financial performance and position in the banking industry could offer a promising outlook for those interested in the financial sector.

For more detailed information and additional tips, consider exploring the InvestingPro product which includes over 9 additional tips specifically for Barclays.

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