Co-Operative Bank has launched a switch offer that pays a huge £300 for existing customers of the bank or Coventry Building Society.

If you aren't an existing customer you'll qualify for a lower £200, which still compares well with other switch incentives on the market.

You won't have all the cash ready for summer because the bank doesn't pay the whole amount in one go.

Eligible customers get £125 following the switch itself and then three £25 payments each month that they actively use the account.

The extra £100 for existing customers won't be paid until November 2026.

Coventry Building Society purchased Co-Operative Bank 18 months ago. Last week the bank slashed its foreign exchange fee to zero and cut the monthly cost of its perks account from £18 to £12. 

HSBC is offering the best widely available joining incentive on the market right now, which is paying £220 for a full switch.

However switchers should beware that HSBC asks you to spend £500 on your debit card within 60 days of opening the account – a requirement that isn't common among deals of this type.

How does Co-operative Bank's deal work?

Co-operative Bank will pay £125 when you request a full switch using the current account switch service (CASS).

You need to open a standard current account or Everyday Extra account, which bundles extra protections such as travel insurance for £12 a month. Within 30 days of the switch completing, you must:

• deposit at least £1,500
• have at least two direct debits
• use your debit card five times
• sign up for online or mobile banking

You can't have received a switching incentive from Co-operative Bank since 1 November 2022.

To get the monthly £25 payment you need to meet those same activity requirements listed above, minus signing up for online or mobile banking.

And existing customers can bag the additional £100 by November 2026 provided they previously qualified for the £125 payment and were already a customer as of 21 June.

How does the deal stack up with others?

Co-operative Bank's deal launches during a potentially lucrative time for serial switchers, with strong deals available from a host of high-street banks.

• Co-operative Bank – Up to £300
• HSBC – £220
• NatWest – £200
• First Direct – £200 (boosted from £175 until 15 July)
• Barclays – £200
• Santander – £180
• Nationwide – £175

Many of these incentives have minimum activity requirements, such as switching at least two direct debits and paying in a set amount each month.

Some are less stringent than others. For example, NatWest doesn't ask that you switch any active direct debits, while First Direct and Nationwide only require a £1,000 deposit in the first month.

You should also check the benefits and rewards that each account offers to see whether you could boost your earnings even more.

Santander has one of the lower switching incentives. But its Edge and Edge Up accounts pay up to £10 and £15 a month cashback on select household bills respectively, although both have a monthly fee at £3 and £5.

You can read our guide to the best bank accounts to find out the top deals for switchers, cashback, interest and more.