HSBC current account switching offer: Last few days to get £200 cash

HSBC is offering £200 to customers who transfer their bank accounts to one of its products, but has now announced that the cash bonus will end this week.

Those wishing to take advantage of the offer must submit their application no later than Thursday, December 22 at 11:59 p.m.

The current account deal, which started on November 7, is the most generous switching offer on the market.

– Our guide to the best bank accounts for benefits, interest and cashback

New customers must apply for one HSBC Premier or HSBC Advance Account use the Payment Account Switching Service and set up at least two direct debits or standing orders to take advantage of the £200 incentive.

Joiners must also begin the switch within 30 days of opening their new account and must deposit at least £1,500 into the new account within 60 days. The £200 will then be paid within 20 days.

Switchers are not eligible for the £200 offer if they have an HSBC or First Direct bank account since 1 January 2019.

The free HSBC Advance account will be accessible to most people, while the HSBC Premier account is also a free account and has some extra hoops to jump through.

For starters, it is only available to those who deposit their annual income into the account, so it must be their main bank account.

In addition, they must have:

• An annual income of at least £75,000 and a mortgage, investment, life insurance or protection product with HSBC.
• Savings or investments of at least £50,000 held with HSBC

They must meet these criteria within six months of opening their account if they are new to HSBC, or before opening their account if they are an existing customer.

For those who do qualify, they get the added benefit of worldwide travel insurance and potentially preferential mortgage and savings rates.

Cash is king: HSBC’s £200 offer is the most generous switching offer available in the market

In addition to the £200 freebie, HSBC is also offering customers access to an exclusive savings deal.

HSBCs Online bonus savings account is essentially an easy-to-access deal that pays 3 per cent on balances up to £10,000, exclusively for HSBC bank customers.

Someone depositing £1,500 into the current account and then £10,000 into the Online Bonus Saver would be able to secure a return of £500 in one year from the combination of bank account incentive and savings interest.

On a total commitment of £11,500, that represents a return of nearly 4.4 per cent after a year, while retaining full access to their cash.

The downside is that the 3 percent rate only applies to the month in which no money is withdrawn. During a month in which a withdrawal is made or the account is closed, savers earn only 0.5 percent.

This means that savers who sign up would be wise to think of this account as their emergency fund, rather than day-to-day savings that they can dip in and out of.

Someone depositing £1,500 into the current account and then £10,000 into the Online Bonus Saver would be able to secure a return of £500 in one year from the combination of bank account incentive and savings interest.

That said, there are plenty of strong bank account offers out there. Check out the This is Money guide to the best checking account deals here.