New. Top service bank First Direct ditches free switching cash for... £170 Bose headphones OR £140 Fitbit OR £150 Expedia voucher

- The market's changing - with a new Barclays £130+ deal too
- We compare latest switching bribes - which is YOUR best?

Service really matters with banking, as TSB customers have found to their cost recently. First Direct has always led the way, topping EVERY bank service poll we've done. Yet its free cash was also a big pull, so replacing it with headphones, vouchers, online courses etc, is big news. So, we've crunched the numbers and checked the small print to see how much of an incentive First Direct's new incentives really are...

First Direct's new switching bonus - any good?

• New. No.1 service, £250 0% overdraft, linked 5% savings + choice of £170 headphones, £150 Expedia vch, £150-£1,000 online course and more. With First Direct* it's all about service, having won every service poll we've done for the last eight-ish years and scoring 91% 'great' in our most recent. It also lets you save up to £300/mth for 1yr in a linked 5% regular saver.
  
  While service remains key, what's often pushed people over the line is the free cash – till last month it was £125 to switch via our special deal (£100 direct). But that's now finished.
  
  
• So what's First Direct offering now, and what's it worth? You can choose one 'freebie' from a list of tech products and vouchers. Here's our deals team's analysis of what the current offers are worth...
  
  - £150 Expedia vch. Valid on hotels, package hols or activities. Expedia may not be the cheapest way to book a holiday, but the less you're spending, the more likely this'll be a good deal as the vch covers more of the cost. Eg, we found three nights in Mallorca in Oct for £139 incl flights, less than the vch. But if planning to spend, say, £3k, it may be possible to save more than £150 buying elsewhere.
  - Bose on-ear wireless headphones. £170 RRP and at Currys.
  - Bose SoundLink Mini II bluetooth speaker (only avail via our link). £170 RRP, £150 at Currys.
  - Fitbit Charge 2 Special Edition. £160 RRP, £140 at Boots.
  - Bose Soundsport wireless headphones. £150 RRP, £130 at Bose.
  - Amazon Echo Spot. £120 RRP, £119 at Tesco Direct.
  - Polaroid OneStep 2 i-Type camera. £110 RRP, £101 at Amazon.
  - Online training course incl cooking, graphic design or photography. They're with Blue Mountain training, which sells them for £150-£1k, though you may be able to get similar courses, for less, elsewhere.
  
  To get it, you must be a new customer, switch and pay in £1,000 within 3mths of switching. You'll be emailed a link within 2 weeks to register for the offer, you're then given a code which you use to pick your 'freebie' within 90 days of registering.  
  
  To keep the account free you'll need to pay in £1k/mth or have an average balance of £1k+; otherwise it's £10/mth.
  
  
• The BIG question: Is the new First Direct switch offer any good? Over to Martin:  
  
   The start point here is First Direct has without question the best service of any fee-free bank account. A human answers the phone, without switchboard opt ions. So while normally I warn against picking financial products on freebies alone, with FD, it's the icing on the cake, as for most switching means a better experience.
   
  With these goods it's clear the bank's aim is to target younger people. And, for those who would've bought these items anyway, it's a cracker. Everyone else must evaluate the opportunity cost. Eg, would you prefer FD's service and £170 headphones, or, say, Barclays' (below) £132 over a year or Halifax's £75 upfront, and buy yourself a £30 pair of headphones?
   
  Cash is of course the most flexible reward, and I think we may later in the year see more offers return of at least £100 free cash upfront. So if you're happy with your bank now, and prefer cash to gimmicks, waiting may pay. Yet if your bank annoys you, stop bitching and start switching. If any of these goods tweak your 'I wouldn't mind one of those' impulses, there's no problem switching to First Direct.  
  
  
• First Direct is also good if you're regularly overdrawn. Eligible new customers get a permanent 0% overdraft of £250. If you've a larger overdraft, Nationwide offers a 0% overdraft for 12 months – there's no set limit, but we've heard of bigger amounts given.
  
  Don't fancy First Direct? Get £185 in M&S vchs & more
   
  Some banks still offer cash (or cash equivalent) to switch. Here are the top picks, based on the total amount they pay in year 1...
  
  
• Get £185 in M&S vchs + 5% regular saver. M&S Bank* gives new switchers a £125 M&S gift card, with £5/mth added to it for 1yr if you deposit £1k+/mth. It's got decent service and you can save up to £250/mth in a 5% regular saver fixed for 1yr, while many get a £100 0% overdraft. To get it all you must switch, incl 2+ active direct debits, within 3mths of opening.
  
  
• New. Get £132 cash, and more if you've a Barclays mortgage/home insurance/loan. New switchers to Barclays* who sign up to its Blue Rewards scheme get £14/mth in yr 1 if they pay in £800/mth and pay out two direct debits. There's a £3/mth fee but that still leaves you up £11/mth or £132 in the first year, though note Barclays often scores poorly in our service polls. You can get extra cashback if you've certain Barclays products (see Barclays info). From year 2, you're at least £4/mth up after the fee.
  
  
• Get £111 cash, incl £75 within the first few days. Halifax pays new switchers £75 before the switch completes. Plus, it pays £3 every month you pay in £750, stay in credit, and pay out at least two direct debits.
  
  

Bank switching FAQs
If you're unsure how it all works, this should help. For full info, see Best Bank Accounts.

Q. How difficult is switching? Not difficult at all. In fact, in our last Twitter poll, 85% of you said it was hassle-free. Under banks' switching services, your account is switched and your old one closed, all within seven working days. And the banks do the hard work of moving money and payments across.

Q. What if money is paid into the old account or something goes wrong? The bots behind the scenes sort it, so for at least 3yrs any money paid into the old account or wrongly earmarked to come out of that account is transferred to the new one. If you're hit with any charges due to an error in the switch service that leads to a missed payment, this should be refunded by the new bank.

Q. I don't qualify for one of these accounts, what can I do? Sadly, 1m+ don't have a bank account. Yet as long as you've ID, you should be able to get what's called a basic bank account where there's no overdraft facility. See our Basic Bank Accounts guide for help.