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.
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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.”
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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.
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