Barclays, HSBC, Lloyds, NatWest savers warned over bonus payouts

As Nationwide confirms it will be issuing a bonus payment of £100 to its loyal members, customers with other banks may be wondering if they will get some extra cash.

The building society has confirmed that more than four million members will receive the bonus payment in the latest round of its Fairer Share Payment.

Santander has also launched a £180 switching offer if you open a current account with them, raising the question of whether other banks will follow suit in offering cash incentives to reward customers or attract new customers.

Aaron Peake, personal finance expert at free credit score app , said: "I think it's fair to say this move from Nationwide will put pressure on other banks to show their loyalty too.

"Customers are fed up with rising fees, lower interest rates on savings, and limited perks, so when a building society like Nationwide gives something back, it doesn't go unnoticed."

He said some of the big-name banks could bring in similar payments, particularly those that have been under the spotlight for their soaring profits.

Nationwide pays out the Fairer Share Payment as a way of sharing its profits with customers. Mr Peake said: "If one or two start doing it, it could spark a new trend in loyalty bonuses, or at least seasonal one-offs.

"But we shouldn't expect them all to suddenly hand over money. Traditional banks like Barclays, HSBC, Lloyds and NatWest are more likely to compete through switching incentives rather than paying out to existing customers."

He said other banks have a record of doing this, with TSB and Santander previously offering bonus payments. But Mr Peake warned against switching banks just because of the prospect of free cash.

He explained: "Sometimes these offers come with hoops to jump through, like having to pay in a set amount each month or setting up a minimum number of direct debits.

"You should also check what ongoing benefits the account offers, like cashback, interest on your balance or fee-free overdrafts. A one-off bonus is nice, but it doesn't always mean better value long term."

The banking expert also encouraged customers to shop around for a better rate. He urged: "If you've been with the same bank for a long time and never received a perk or bonus, now's a good time to shop around.

"Some of the best current account deals right now are offering £175 or more to switch, and they can often be done in just seven days through the Current Account Switch Service."

Co-op Bank currently has a £175 switch offer, which is available to new and existing current account customers. First direct is also offering £175 when you switch to them.