HSBC brings back £200 cash bonus for customers switching bank account

HSBC is reintroducing its £200 bank account switching offer to attract new customers.

It puts HSBC on a par with NatWest and RBS, who also offer a £200 cash sweetener to new members. HSBC withdrew the incentive earlier on December 22 last year.

The offer is available to those switching to an HSBC Advance or Premier bank account using the Current Account Switch Service.

Switchers must have set up at least two direct debits or standing orders and initiate the switch within 30 days of opening their new account.

Also, to secure the £200, they must deposit a minimum of £1,500 into the new account within 60 days of opening. The money is then paid within 20 days of the completion of all this.

However, customers are not eligible for the offer if they have an HSBC bank account or opened a First Direct account since January 1, 2020. They are allowed to have a First Direct account if it was opened before January 1, 2020.

The bank is also raising interest on some of its savings deals.

Most notably, on Thursday, April 20, it will increase the rate on its Instant Access Online Bonus Saver account from 3.25 percent to 3.5 percent for credits up to £10,000.

One downside, however, is that for any cash held above the £10,000 limit, the rate will drop to 2 percent.

The other downside is that the 3.5 percent rate only applies to any month in which no funds are withdrawn.

During a month in which a withdrawal is made or the account is closed, savers earn only 1.3 percent.

Do you need to switch bank accounts?

Most people rarely think about switching bank accounts, and according to research from HSBC, two-thirds of people have not considered switching checking accounts.

The research also shows that more than half of the population has had the same current account for more than a decade, with more than two in five staying longer than 15 years.

It also found that nearly one in five said they had had the same current account for more than 20 years.

That said, there were nearly 1 million switchers last year, according to the official switching service, a 20 percent increase from the previous year.

Since the start of the Switching Service in 2013, more than 8.8 million people have switched bank accounts.

If you’re looking for free money, you don’t necessarily have to choose HSBC.

A number of banks offer free cash to switch. First Direct pays £175, while NatWest and RBS offer £200.

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

NatWest and RBS are offering their biggest ever bank account switch incentive, with new and existing customers receiving £200.

Anyone who switches their main account to the NatWest or RBS Reward or Select account is eligible if they log into mobile banking and pay at least £1,250.

Those going for the Rewards account should know that there is a £2 monthly fee associated with it.

However, they can also earn £4 monthly cashback for setting up two direct debits per month and £1 per month if they log into mobile banking each month.

However, cash freebies shouldn’t be the only reason you switch.

Banks offer numerous benefits in various guises. Some do not charge for using their card abroad, others give cashback on expenses.

There is also the question of which gives access to the best exclusive savings rates or credit rates, or which offers the best app-based experience or superior customer service.

> Read our guide to the best bank account offers available