Halifax launches £175 bank account switching bonus

Halifax has upped the ante in the war to switch bank accounts by making a £175 cash offer for new members.

As of today, those are switching to The reward of Halifax or Ultimate reward checking accounts are eligible – although they should be aware that both customers charge a monthly fee.

Those who already have a free Halifax checking account can also benefit if they change their existing Halifax bank account to a Reward or Ultimate Reward account.

However, they do need to have a secondary bank account with another provider that they can switch from, and they are not eligible if they have used any other Halifax transfer offer since April 2020.

Halifax says the offer will remain in place until April 3, with the £175 paid within three days of completion of the switch.

Switching is completed using the Current Account Switching Servicewhich automatically moves all direct debits to the new account.

The service also automatically transfers the existing current account balance, standing orders and salary obligations within seven days.

Is Halifax’s transfer offer a good deal?

Anyone considering the switch should be aware that the Halifax Reward account charges £3 per month, while the Ultimate Reward account charges £17 per month.

With the Rewards account, the £3 will be waived if £1,500 or more is paid in each month.

There’s no avoiding the £17 Ultimate Reward account fee, but it includes global multi-trip travel insurance, AA breakdown family cover, mobile phone insurance and home emergency cover.

In addition to the switching bonus, Halifax Reward Account customers can receive £5 in cash each month or choose from a range of benefits including cinema tickets, magazine downloads and movie streaming.

However, to take advantage of this, they need to spend £500 on their debit card every month or keep £5,000 in their account every day of the month.

Someone who switches to the Rewards account and adheres to the rules can therefore receive £175 for entry and £60 cashback after the first year. That’s a total of £235.

It’s worth comparing the offer at the moment with other switching offers and looking at different benefits offered at other banks.

> View here This is Money’s best current account guide

First Direct offers Switchers a £175 bonus when they deposit £1,000 within three months of opening the account.

Last month, NatWest launched its biggest ever incentive to switch bank accounts, offering new and existing customers £200 in cash.

Anyone who transfers their main account to NatWest’s Reward account or Select account is eligible if they log into mobile banking and pay a minimum of £1,250.

However, cash freebies shouldn’t be the main reason for switching. There are other benefits to consider, such as in-credit interest or linked savings rates, overdraft limits, customer service, and free spending abroad.

For example, digital banks offer some of the most accessible savings rates at a time when many of the major banks are paying substandard rates.

Kroo pays 3.03 percent credit interest, while Chase and Monzo both have linked instant savings accounts and pay 3 percent.

Digital-only banks also almost always allow free transactions abroad, which many of the big banks don’t.

Many of the major banks charge transaction fees when using their debit card abroad. For example, Lloyds and Barclays charge 2.99 percent, while NatWest and HSBC charge 2.75 percent. They also typically charge a cash withdrawal fee at ATMs.

> Read This is Money’s review of the four best digital banks