Current account switching deals heat up with £125 offer

by Marc Shoffman from interactive investor |

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HSBC launches £125 reward for switchers – but there’s a catch.

Competition for current account switches is heating up, as savers can now get up to £125 for moving their money.

HSBC has shot to the top of the best buy tables with a £125 cashback offer for new customers to its Advance and Premier accounts.

It is available to new customers who apply and start a full switch using the Current Account Switch Service, including a minimum of two direct debits or standing orders, within 30 days of the date of the account being opened.

The offer is also open to First Direct and M&S Bank current account customers, which are both part of HSBC, as long as the current account was opened before 1 January 2017.

There are some catches though. 

Advance account customers must have at least £1,750 a month coming into their account or a minimum of £10,500 every six months.

This does not include money transferred from any other sole or joint personal accounts held with HSBC.

Premier account holders must have an individual annual income of at least £75,000 and either a mortgage, investment, life insurance or a protection product with HSBC.

Alternatively they need to set up savings and investments worth at least £50,000 at the bank within six months.

Fiona McCaffrey, HSBC UK head of everyday banking, says: “The restrictions that have been put in place with the initial lockdown really gave people time to think about friends, family and finances amongst other things. 

“This cash incentive of £125 could provide a little ray of sunshine in what has been a difficult year.”

It brings fresh life to the current account switching market that had largely dried up amid Brexit and the coronavirus pandemic.
In contrast, you can currently get £100 for switching to a Club Lloyds account by 9 November.

There is a £3 fee unless you pay £1,500 a month into the fund. 

RBS also offers £100 cashback for switches to its Reward account before 19 November.

Users must have £1,250 going into the account each month and there is a £2 fee each month.

Also, you must be switching from a non-RBS group account, which means you wouldn’t be able to get the incentive if moving from NatWest.

Metro Bank current account holders can also earn £50 for referring a friend. 

This can be done five times, so you could receive £250 in total, plus each friend will get £50 for opening an account.

Beyond cashback, it is also important to look at other perks that come with an account.

HSBC offers access to a 2.75% regular saver deal, RBS has up to £5 cashback on spending while Lloyds offers perks such as free movie rentals and magazine subscriptions.

You can also earn up to 3% cashback with a Santander 123 account. It has a monthly fee of £1 until 27 October before it increases to £2.

Alternatively, Virgin Money offers 2.02% interest of balances up to £1,000 and Nationwide offers 2% up to £1,500.

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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