Co-op Bank launches £300 switching incentive to capture retail deposits

The lender's push for new current account customers intensifies competition in a market where high street banks are holding savings rates steady.

By Handelsavisen Newsroom · Automated 2026-07-06 13:55 UTC · 1 min read

Co-operative Bank has introduced a £300 cash incentive for customers who switch their primary current account to the lender, marking a renewed effort to grow its retail deposit base.

The offer targets existing customers of other banks, aiming to attract funds through direct financial rewards rather than interest rate competition.

The move comes as major UK high street banks continue to maintain interest rates on easy-access savings accounts at approximately 1%, despite reporting record profit levels.

The move comes as major UK high street banks continue to maintain interest rates on easy-access savings accounts at approximately 1%, despite reporting record profit levels.

This divergence between institutional profitability and retail returns has created an environment where cash incentives for switching accounts are becoming a more prominent tool for customer acquisition.

Co-op Bank's strategy aligns with recent pricing adjustments, including the removal of its 2.75% transaction fee on overseas debit card payments.

That change positioned the lender more competitively against digital-first rivals such as Monzo and Chase, while the new switching bonus extends the value proposition to domestic account holders.