The Co-operative Bank has launched a new fight to win back customers and rebuild its ethical reputation with a £125 current account switching offer which includes a donation to charity.

Customers who switch their current account to the Co-op will get £100 and they will also be able to donate a further £25 to one of seven charities, including Action Aid, Oxfam, Water Aid and Amnesty International.

Last autumn, the Co-op admitted it was shedding current account customers as its reputation took a battering following financial turmoil and the drugs scandal involving former chairman and former Bradford councillor Paul Flowers.

It said previously that possible “brand and reputational damage” stemming from its woes, combined with a new industry-wide guarantee introduced last September to make it easier for consumers to change their bank or building society, “may be a contributing factor to an increase the bank has seen in the switching out of current accounts”.