Nationwide £175 Switching Bonus Confirmed – Rules, Hidden Catches, and How to Claim

Nationwide is offering a £175 switching bonus to new customers, but the deal isn’t as simple as it sounds. To qualify, you must meet strict rules: moving at least two Direct Debits, depositing £1,000 from an external account, and making a debit card purchase within 31 days.

This incentive has quickly become one of the most talked-about switching offers in the UK. However, failing to meet even one condition means you won’t see a penny of the bonus. Let’s break down the details, the fine print, how it compares with rival offers, and expert-backed strategies to make sure you don’t miss out.

Why Banks Offer Switching Bonuses

Banks don’t hand out free money for nothing. These offers are part of a long-term customer acquisition strategy.

When you switch, you bring in salary deposits, bill payments, and card spending data. Banks use this to cross-sell loans, overdrafts, mortgages, and insurance. For them, the £175 is an investment in future loyalty.

The Current Account Switch Service (CASS) makes this easy, guaranteeing smooth transfers of Direct Debits and standing orders. In 2024 alone, more than 1.3 million people switched accounts, with Nationwide consistently among the top destinations.

Nationwide £175 Bonus – Key Rules

To secure the £175, you need to meet all of the following:

• Full Switch via CASS – You must close your old account. Partial switches don’t qualify.
• Deposit £1,000 Within 31 Days – The money must come from outside Nationwide. Internal transfers don’t count.
• Two Active Direct Debits – Standing orders won’t qualify. Direct Debits must be from companies such as energy suppliers, streaming services, or mobile contracts.
• Debit Card Payment – Make at least one qualifying transaction within 31 days. Everyday purchases like groceries work; gambling or crypto-related payments are excluded.
• No Previous Bonus Since August 2021 – If you’ve already claimed a Nationwide switch bonus in the past four years, you’re not eligible.

Why These Rules Exist

The requirements are designed to ensure customers use the account actively:

• The £1,000 deposit shows regular incoming funds.
• The Direct Debits prove the account will be used for bills.
• The debit card purchase demonstrates everyday spending.
• The exclusion rule prevents repeat bonus hunters.

Nationwide wants real, engaged customers—not temporary switchers chasing free money.

Comparison With Rival Banks

Nationwide’s £175 deal is attractive, but how does it stack up against competitors?

Bank	Bonus	Requirements
Nationwide	£175	£1,000 deposit, 2 DDs, debit card purchase
Santander	£175	2 DDs, £1,500 monthly income
HSBC	Up to £220	New customers, £1,500 monthly deposit
Lloyds	£175	Open Club Lloyds + 2 DDs
First Direct	£175	CASS switch + £1,000 deposit

Nationwide’s requirements are simpler than Santander’s higher deposit rule but slightly more complex than First Direct’s conditions.

The Hidden Pitfalls

Many customers miss out on the bonus because of avoidable mistakes.

• Direct Debits vs Standing Orders – Only true Direct Debits count.
• Deposit Rules – Transfers must come from outside Nationwide.
• Tax Liability – HMRC considers switching bonuses as income. If you exceed your Personal Savings Allowance, tax may apply.
• Paid Accounts – FlexPlus costs £13 per month. Unless you use its perks (insurance, breakdown cover), fees can reduce your profit.

Who Should Consider This Bonus?

• Students & Young Adults – A simple way to gain cash while managing bills.
• Families – Parents can easily reroute household Direct Debits.
• Bonus Hunters – If you haven’t switched since 2021, this is a free win.

Who Should Avoid It?

• Customers unwilling to close their old bank account.
• People who already claimed a Nationwide bonus in recent years.
• Anyone without at least two active Direct Debits.

Expert Opinions

• Martin Lewis (MoneySavingExpert) – Calls switching bonuses “the easiest legal money you’ll ever make,” but warns to follow every rule exactly.
• Which? – Notes CASS has a 99.5% success rate, but forgetting one Direct Debit can cost you the reward.
• FCA (Financial Conduct Authority) – Urges customers to read terms carefully as banks can withdraw offers early.

Step-by-Step Guide to Claim Nationwide £175

• Open a qualifying account (FlexDirect, FlexAccount, or FlexPlus).
• Apply for a full switch using CASS.
• Transfer two active Direct Debits.
• Deposit £1,000 from an external source within 31 days.
• Make at least one debit card purchase.
• Wait for your bonus, usually paid within 10 working days after conditions are met.

Real-Life Examples

• Sarah (Working Parent) – Moved her salary and bills, made a grocery card purchase, and received £175 to cover school supplies.
• Tom (University Student) – Switched Spotify and phone bills, used his debit card for lunch, and earned £175 for textbooks.
• David (Bonus Hunter) – Already claimed in 2022, making him ineligible.

The Bigger Picture – UK Switching Trends

Bank switching is at an all-time high, with over 9 million switches since CASS launched. Consumers are increasingly savvy, treating bank accounts like mobile contracts—moving for the best incentives.

Nationwide’s deal is part of a broader competition among high street banks like HSBC, Santander, and Lloyds. For consumers, this means more chances to pocket hundreds in bonuses, provided they stay organized.

Practical Tips to Maximise Value

• Use existing bills for Direct Debits instead of creating new commitments.
• If you want to keep ties with your old bank, open a second account and switch that.
• Track deadlines carefully—missing the 31-day deposit rule voids eligibility.
• Compare all available offers before committing.

FAQs – Nationwide £175 Switching Bonus 2025

Q1. How do I qualify for Nationwide’s £175 bonus?
You must complete a full switch via CASS, move two Direct Debits, deposit £1,000 externally within 31 days, and make a debit card purchase.

Q2. Which Nationwide accounts are eligible?
FlexDirect, FlexAccount, and FlexPlus accounts qualify.

Q3. Can I get the bonus if I’ve claimed before?
Not if you received a Nationwide switch bonus after August 2021.

Q4. How soon will I get the £175?
Typically within 10 working days after all requirements are met.

Q5. Is the £175 taxable?
Yes, HMRC counts bank switching bonuses as income. If you exceed your allowance, tax may apply.