Lloyds Bank would like to give you your shopping for free. Possibly.
The new current account switching service was launched with a bang last month, but latest figures suggest the take up has been tentative at best- although 89,000 people switched in the first four weeks of operation, up 10% on the same period last year, the number has not really increased from the average four week period preceding the change.
Still, with reports of being able to save up to £600 by switching, changing your bank account is probably nearer the front of peoples’ minds than it has been for a long time. And some banks are taking steps to make sure you don’t think about switching from them if you are already a customer.
Last month, Halifax announced special cashback deals for its customers, by partnering with a number of selected retailers, and now sister bank Lloyds Bank (new name after the TSB divorce) has announced a similar service for customers who sign up to its ‘Everyday Offers' service. This will give cashback of up to 15% on ‘everyday’ spending at places like Ocado, Homebase, Morrisons and Argos, with more promised to come.
But Lloyds have actually come up with an interesting new idea on top of this. Catchily named “It’s on us”, from the end of November, 1000 Everyday Offers current account customers per month will have one ‘everyday’ transaction paid for by the bank. The transaction value can be up to £500 and lucky customers will be notified “within a few days” of the wedge they can expect to get refunded in the following month. Customers will be selected at random from those using a credit or debit card to buy most things although “certain activities such as gambling and ‘adult sites’ are excluded.”
Philip Robinson, director of current accounts at Lloyds Bank, said: "We want our customers to feel rewarded for the sorts of things they spend on everyday. They can earn cashback from places where they shop, and thousands of customers every month will get a nice surprise when we will tell them that their shopping is on us." He meant thousand singular, clearly. But he’s only a banker, how would he know the difference.
Whether the outside chance of winning your shopping for free is enough to convince you to switch to Lloyds remains to be seen- after all, they are up against Santander’s ground breaking wheel-in-a-sporting-celebrity-who-can’t-act adverts for their 123 cashback account- but it might be just enough of a sweetener to retain those who can’t really be bothered to switch. Hopefully we can now look forward to all other banks offering similar tempting perks for us to keep our business with them.