THE battle to win over current account customers has been ramped up with TSB offering £125 to people who switch.

The cash offer, which runs until November 2, is available to customers who open its Classic Plus account through the MoneySupermarket or Money Saving Expert websites and switch to TSB using the seven-day current account switching service.

The Classic Plus account already offers 5 per cent interest on balances up to £2,000 and a new perk launched in September means that customers also earn 5 per cent cashback on the first £100 of contactless debit card purchases they make each month.

In order to receive the £125 for switching, customers will also need to register a minimum of two active direct debits and credit a minimum of £500 into their new account within 28 days of the switch being completed.

Customers must have switched by November 23 using the switching service and TSB will pay customers 28 days after the switch completes.

Launched in 2013 across banks and building societies, the current account switching scheme automatically moves over incoming and outgoing payments to the new account and also closes the customer’s old current account.

Meanwhile, Santander – whose innovative 123 account has been particularly popular in the current account switching battle – recently said that the annual cost for its account will rise from £24 to £60 from January. The 123 account pays up to 3 per cent interest on balances of up to £20,000, as well as cashback on household bills.