Halifax has launched a new current account switching incentive promising £150 to be paid to new customers in just three days.
This makes it the fastest cash boost launched by a major bank. Last December, for example, Halifax – when it offered £175 to switch – paid the money within 10 days.
The time it takes to pay out rewards has decreased in recent years. For example, NatWest currently has a £200 bonus offer that is paid out within seven days.
Halifax has launched a bank account switching incentive, offering new customers £150 in cash
Customers who switch to a Halifax Rewards Current Account or Ultimate Rewards Current Account between July 25 and August 31 receives £150.
To be eligible, customers must use Halifax’s Switching Service to transfer all active credits and debits from the bank account they hold with another bank.
An additional £25 cashback is available in each of the first three months after opening one of these accounts, meaning customers can earn an additional £75.
Eligible debit card transactions include both in-store and online spending, including payments with Apple Pay and Google Pay.
The £25 monthly reward will be paid to eligible customers in the month after the minimum spending limit is reached.
To qualify for the cashback you must use your new Reward checking account or Ultimate Reward checking account Visa debit card to spend £750 or more on goods or services each month.
It is worth noting that a monthly fee is paid for both accounts.
There is a £3 account maintenance fee for the Reward checking account and a £17 monthly fee for the Ultimate Reward checking account.
You cannot apply for the offer if you have received a switching offer since April 2020 for switching to a Lloyds or Halifax bank account.
How does it compare to other deals?
Halifax faces stiff competition from a number of other banks including NatWest, RBS and TSB who are offering £200, as well as First Direct who are offering £175, so the other switching deals on the market offer more cash than Halifax’s deal.
To take advantage of the NatWest and RBS switching offer, customers must sign up online or through their mobile app and convert a current account held elsewhere to a NatWest or RBS account. This could be the free Everyday account.
They then have to deposit £1,250 into their new account and log into their mobile banking app within 60 days.
If they meet these conditions, NatWest will deposit £200 into the new account within seven days.
Switchers can opt for the NatWest or RBS Rewards account or the Everyday account.
NatWest’s Reward account gives customers an extra £4 per month if they set up two direct debits, and an extra £1 per month to log into online banking, totaling an extra £60 per year. RBS similarly gives an extra £4 a month cashback for setting up two direct debits.
However, both accounts have a monthly fee of £2. The Select accounts have no monthly fees, but also no additional cashback.
For the TSB offer you must switch to a TSB Spend & Save or Spend & Save Plus current account.
Customers must set up at least two direct debits, use their debit card at least once, and log into the TSB mobile banking app to receive the first installment in their account.
Unlike the offers from NatWest and RBS, there is no minimum deposit amount with the TSB switching deal.
TSB is offering customers the chance to earn £5 extra cashback every month for the first six months with a Spend & Save account.
For a Spend & Save Plus account, the same cashback is available on an ongoing basis – so customers can earn £60 in the first 12 months, although the Plus account comes with a £3 monthly fee.
The TSB in cash is paid no later than 30 September.
Those switching to First Direct for the switching deal must pay at least £1,000 within three months of opening the account to receive £175 in cash.
First Direct also offers interest-free overdrafts up to £250, a regular savings account paying 7 per cent and now free use of the debit card abroad.
The First Direct cash will arrive within 28 days of meeting the criteria.
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