£200 NatWest switch bonus plus £5 monthly cashback: who qualifies and the catch

NatWest is paying a one-off £200 cash bonus to new customers who switch their everyday banking to its Reward current account, the Daily Mirror reports. To get the money, switchers must pay in £1,250 and log in to the bank's mobile app. Anyone who has already had a switch bonus from NatWest, RBS or Ulster Bank cannot claim it.

The Express reports that, on top of the bonus, the Reward account pays £5 cashback every month to customers who meet a few ongoing conditions. On June 11, Martin Lewis' team at the MoneySavingExpert website called the package a "decent option with ongoing cashback and a strong regular saver".

For a household watching every pound, a quick £200 for moving a bank account is hard to ignore. But the bonus comes with conditions. Every application also leaves a record on your credit file, which can matter more than the cash if you plan to borrow soon.

How the NatWest Reward switch deal works

New customers start by opening a NatWest Reward account online or through the bank's app. The switch then runs under the Current Account Switch Guarantee, which means NatWest does the legwork. According to the Mirror, it moves your balance, Direct Debits, standing orders and salary payments across, then closes the old account for you.

To trigger the £200, you need to pay in £1,250. This can be made up of several payments, but the money must stay in the account for 24 hours. You also need to log in to the free NatWest mobile banking app on any device that supports it. The monthly £5 cashback has its own conditions. The Express says customers must pay in at least £1,250, keep at least two Direct Debits of £2 or more running and use the mobile app.

The account also comes with a linked regular saver paying a variable 5.25%. MoneySavingExpert said it "works differently to most" because it does not stop after a set period. Instead, you can pay in up to £150 a month until the pot reaches £5,000, which MSE said takes three years if you save the maximum every month. MSE added that "if you can leave your money untouched for longer, this can be lucrative."

Who can get the £200 and who is shut out

The Mirror says millions of people are eligible for the account. Applicants must live in the UK, be aged 18 and over, and provide proof of ID and proof of address. As long as you meet the paying-in and app conditions, the bonus is yours.

The big exclusion is for past switchers. Anyone who has previously received a switch bonus from NatWest, RBS or Ulster Bank is automatically barred, so people who have chased deals across that banking group before will probably miss out. The Mirror notes that there is no limit on how many times you can switch bank, but most banks will only pay out on a switch offer once.

People planning a big loan need to be more careful. Each new account application involves a hard search, which usually stays on your credit file for months. Chris Collier of MoneySavingExpert warned that switching regularly "can affect your ability to get credit in future" and "could indicate a lack of stability". He said that done sensibly it is not usually a big deal, but that "multiple applications in a short time can look odd."

Key numbers

• £200: the one-off cash bonus for eligible new switchers.
• £1,250: the amount you must pay in, which can be split across several payments and must stay in the account for 24 hours.
• £5: the monthly cashback on the Reward account when the conditions are met.
• 5.25%: the variable rate on the linked regular saver.
• £150: the most you can put into the regular saver each month.
• £5,000: the maximum the regular saver can hold.
• Six months: how long Chris Collier suggests avoiding a switch before a major credit application such as a mortgage.

What happens next with the offer

MoneySavingExpert's verdict dates from June 11, and the Mirror report gives no closing date for the deal. No end date has been published, and banks can change or withdraw switching offers. Do not assume the terms described here still apply. Check the current terms directly with NatWest before you start a switch.

What you can do now

First, check whether you have ever had a switch bonus from NatWest, RBS or Ulster Bank, because that alone rules you out. Then confirm the live terms on NatWest's own website or app, including whether the £200 offer is still open and what conditions it carries today.

Next, be honest about whether you can meet the conditions. You need to pay in £1,250 and leave it for 24 hours to get the bonus. For the monthly £5 you need at least two Direct Debits of £2 or more and must keep using the app. Remember that the switch service moves your existing Direct Debits and salary payments across for you.

If you are planning a mortgage or other big borrowing, Chris Collier's advice is to avoid switching for at least six months beforehand. If you have applied for several accounts or cards recently, it may pay to wait rather than add another hard search to your file.

Your questions answered

Will switching to NatWest affect my credit file?

Yes. Every new account application involves a hard search, which usually stays on your file for months. MoneySavingExpert's Chris Collier said one sensible switch is not usually a big deal, but several applications in a short time can look odd to lenders.

Do I have to move my bills and salary myself?

No. Under the Current Account Switch Guarantee, NatWest moves your balance, Direct Debits, standing orders and salary payments for you. It also closes your old account.

I got a switch bonus from RBS a while ago. Can I still claim?

No. The Mirror says anyone who has previously received a NatWest, RBS or Ulster Bank switch bonus is automatically excluded from the £200. You can still open the account, but you will not get the cash bonus.