Why are bank cashback switch payments now so strict?

IAMIAM

Majority say you now can have never had a switch payment ever! Which is now excluding many for me, and the dates eligible are now 5/6 years ago too. 

On-the-coast

Because they’re in business to make money, not give it away?

EarthBoy

Switching incentives, i.e. bribes, are meant to attract new customers.  The restriction is to deter serial switchers. 

wmb194

IAMIAM said:

Why are bank cashback switch payments now so strict?

Majority say you now can have never had a switch payment ever! Which is now excluding many for me, and the dates eligible are now 5/6 years ago too. 

Because we abused them.

huw01

I wonder actually what percentage of switchers actually are genuinely looking for a new current account and actually have sticked with the new bank and used them for their main current account.

clairec666

huw01 said:

I wonder actually what percentage of switchers actually are genuinely looking for a new current account and actually have sticked with the new bank and used them for their main current account.

I've done three switches this year. Two of them I've continued using for further cashback bonuses, but after that will probably just leave them as backup accounts. I still have the same "main" account that I've had for years.

Amongst the wider population, as opposed to this forum, there are probably a lot of people who do the switch "properly", i.e. switch everything, salary, household bills and all, into the new account. Are they a majority or minority? And is it worth it for banks to give away money to non-genuine switchers? That's for them to decide.

Rob5342

huw01 said:

I wonder actually what percentage of switchers actually are genuinely looking for a new current account and actually have sticked with the new bank and used them for their main current account.

I would imagine it's quite high. It's only on here that I hear about people doing multiple switches, all my friends and family have been with their banks for years and treat the idea of switching as some massive task akin to moving house. 

Rob5342

EarthBoy said:

Switching incentives, i.e. bribes, are meant to attract new customers.  The restriction is to deter serial switchers. 

Exactly, they are investing in a promotion and they want that investment to result in customers they'd make a profit from. 

brewerdave

I switched for the first time recently from Santander to First Direct . I finally got fed up with Santander diluting the original benefits of the original 123 account, the 1st Direct bonus via MSE was the equivalent of ~ 8 years potential net earnings from Santander.
Having done it once with no issues, I'm now looking for a switch for our NatWest account , which we've held for nearly 50 years!

Middle_of_the_Road

brewerdave said:

I switched for the first time recently from Santander to First Direct . I finally got fed up with Santander diluting the original benefits of the original 123 account, the 1st Direct bonus via MSE was the equivalent of ~ 8 years potential net earnings from Santander.
Having done it once with no issues, I'm now looking for a switch for our NatWest account , which we've held for nearly 50 years!

I've been with NatWest probably 35 years, and whilst I've completed around 8 switches, I would not switch this longstanding account.
I have 16 current accounts at the moment for different reasons, only two of them would be classed as main accounts though.
There is no need to switch your main account unless it's not providing the service you need, rather opening another account with them and then switching that to collect some of these switching bonuses.

jimjames

Because of this activity

https://forums.moneysavingexpert.com/discussion/6633351/have-completed-all-possible-bank-switches-what-next