Norwich & Peterborough Building Society closure: which bank account should you switch to?

100,000 Norwich & Peterborough current account customers received a boost after being told they will now be eligible to bag switching bonuses worth up to £200 when they leave the closing building society.

What is happening to Norwich & Peterborough?

In September, Norwich & Peterborough (N&P) will close 28 branches. At the same time Yorkshire Building Society, which owns Norwich & Peterborough, will also close 20 branches. The N&P brand will disappear from the high street over the next 12 months, with remaining branches rebranded as Yorkshire Building Society.

The decision has also been made to close all 100,000 N&P current accounts. 

When will my account close?

N&P says it has already written to 50,000 current account customers telling them their account will close on 31 August. You can either choose to move your account to another bank or building society or simply close it and remove the money.

The other 50,000 customers will receive letters giving them six months from the date of the letter to close their account.

“Current account customers who would like to discuss closing or switching their account can call our contact centre on 0345 300 2511 or pop into any branch,” a spokesman told The Telegraph.

“Customers who are registered for internet banking can also get in touch via our secure email messaging service.”

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What happens if I don’t move my money in time?

A spokesperson for the building society has said they will repeatedly try to get in touch with customers to inform them of the closure date. They will also be flexible on closure dates if they struggle to get hold of customers and will work as much as possible to help customers. 

Where can I move my money to?

You can move your money wherever you like but the process may be more arduous than for most people.

N&P is not a member of the Current Account Switching Service (CASS). This means switches take a little longer, as they have to be completed manually.

It is causing problems for customers as banks are struggling to keep up with the huge demand for manual switches following N&P’s decision to close 100,000 accounts.

Over 1 million current account switches take place each year, but normally only 7,000 of those are outside of the automated process.

What about switching bonuses?

As N&P isn’t a member of CASS, customers switching current accounts have not been able to benefit from the switching bonuses offered by several current account providers at the moment.

But in a bid to grab some new customers, certain banks are now offering their switching bonuses to N&P customers anyway.

HSBC, First Direct, TSB and M&S Bank have all said they will extend their switching bonuses to N&P current account customers.

Here are some of the deals on offer:

HSBC for a £150 bonus and £50 after 12 months

This is the biggest switching bonus available to N&P customers, but not everyone will be able to open the two accounts the bonus comes with. You must switch to either HSBC’s Advance current account or Premier current account to get the £150, you then get a further £50 if you keep the account for 12 months.

Move to HSBC Advance and you need to set up two direct debits and pay in £1,750 a month.

To be eligible for a Premier account you must have either savings or investments worth at least £50,000 held with HSBC in the UK, or an annual income of at least £100,000 and an HSBC mortgage, life insurance or protection product or investment.

To make the switch, N&P customers need to ask in an HSBC branch for a manual switch form or call 08000 326 215.

First Direct for £100 switching bonus

Switch to First Direct and you can get a £100 switching bonus.

To get the bonus you have to pay in at least £1,000 a month for three months and switch your direct debits to First Direct.

The account pays no interest but account holders can open a regular saver account which pays an impressive 5% for 12 months if you pay in between £25 and £300 a month.

As long as you pay in £1,000 a month you can also avoid the £10 a month fee for the account.

If you decide to leave First Direct between six months to a year after joining you’ll also get a further £100 – First Direct is that confident you won’t want to leave.

N&P customers can call First Direct on 0345 6100 100 to arrange a manual switch.

M&S for a £125 giftcard and £60 over a year

Customers who switch to M&S Bank’s current account get a £125 M&S gift card, as long as you switch at least two direct debits. Pay in at least £1,000 a month to the account and a further £5 will be added to the gift card each month for the first year.

Current account customers also earn loyalty points when they use their debit card. You earn one point for every £1 spent in M&S and every 100 points is turned into a £1 voucher.

N&P customers can contact M&S Bank via phone or in branch to request a manual switching form. You can also download a manual switching form from the M&S Bank website.

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