The switching stakes for banking customers are heating up as HSBC relaunches its £200 switching offer.
The bank had previously run the deal to offer up to £200 for switching before cancelling it in on 25 March this year. However, the offer is time limited, so anyone hoping to benefit will need to apply using the Current Account Switching Service before 30 June 2018.
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The switcher will be given £150 cash up front and a further £50 if they stay for at least 12 months. The initial payment will be made within 50 days of switching as long as the customer sets up at least two direct debits within 30 days of opening the account.
To be eligible for the extra £50, new customers will need to log into mobile or online banking within 60 days of opening the account.
This offer is open to new customers opening up an HSBC Advance account. It requires no monthly fees and offers an interest-free and fee-free overdraft for the first six months. The arranged overdraft will be a minimum of £1,000 upon opening.
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However, there is a significant caveat to opening up an HSBC Advance account: customers must pay in at least £1,750 a month, or £10,500 over six months. If this condition is not met, the account will be downgraded to a standard bank account.
How does it compare?
This offer from HSBC comes amid a slew of changing offers in the current account market.
NatWest recently introduced a short-term offer of £100 cash upfront, which expires on 15 June. Halifax offers £75 up front and doesn’t currently have an expiry date on the offer. With Halifax, you’ll also earn £3 a month if you pay in at least £750 each month. So the total cash you can earn in 12 months is £111.
Barclays offers the best overall cash deal currently through their Blue Rewards programme. But this comes as cashback through the course of the year, so there’s no lump-sum bonus for switching.
Non-cash alternatives include £125 in M&S vouchers from M&S Bank or a selection of gifts, vouchers or online training courses from First Direct.
The Moneywise verdict
It appears that the banks are currently in something of a bunfight for customers. This is the highest value switching offer available now, so if you’re looking for some free cash this one will do you great. However, while this deal is good in terms of cash value, the minimum pay-in of £1,750 is a significant drawback that many will not be able to achieve.
This article was originally published in our sister magazine Moneywise, which ceased publication in August 2020.
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