has issued an alert as three major UK banks are now paying customers to open Banks and building societies often offer cash incentives to new customers willing to make a full switch from their existing current account.

Martin issued the alert in the recent Money Saving Expert (MSE) newsletter. The Co-Operative Bank has launched a brand new switching offer.

The new offer joins switching incentive which is also paying £175, and Natwest which is paying £150. However, it's important to note that Natwest's offer is only for those who switch to its Reward Accounts, which have a monthly fee.

To get the incentive when switching banks, you need to close and switch your current account using the Current Account Switch Service (CASS). This free service will move your balance, direct debits, and salary to the new bank within seven days.

To get the bonus from the you must switch your account to a Standard Current Account, Current Account Plus, Privilege, Privilege Premier or Everyday Extra account.

New customers will get £100 completing a bank switch to Co-op, and £25 each month for three months, giving a total of £175. To receive the first £100 payment, you will need to deposit a minimum of £1,000 into your accounts within 30 days. This can include balances transferred as part of the switch.

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You must also transfer two active direct debits and make a minimum of 10 card transactions. You must also register for Co-op's online or mobile banking service.

To get the extra £75 - so three payments worth £25 a month - you must deposit a minimum of £1,000 into your account each month, have two active direct debits, and make a minimum of 10 debit card or digital wallet transactions. If you have received a switching incentive from the Co-operative Bank after November 1, 2022, you will not be eligible for the bonus.

However, even with the new offer - who regularly encourages households to take advantage of bank switching deals - says that First Direct is still the "overall top pick".

In the MSE newsletter, he explained: "As well as giving newbies a free £175, it's top rated for service (92% 'great'), has a top debit card for using abroad, a linked 7% regular saver, and a £250 0% overdraft for many."

To get the incentive with First Direct, you will need to deposit at least £1,000 and open two direct debits or standing orders from the account within 30 days of opening it. You must also register and log onto digital banking within 45 days of the account opening, and make five debit card payments.

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