HSBC offers £200 cash to switch bank accounts, matching Nationwide’s bonus

HSBC has launched a cash bonus for new checking account customers, offering them a £200 bonus for switching.

The current account agreement matches Nationwide as the most generous switching offer on the market.

New customers must request either one HSBC Premier or HSBC Advance Account use the Payment Account Switching Service (CASS) and set up at least two direct debits or standing orders.

Joiners must also deposit at least £1,500 into the new account within 60 days of opening.

In addition to the £200 freebie, both providers are also offering their customers access to a number of exclusive market-leading savings deals.

When combined together, it means that both banks are worth considering as a place to hold a rainy day or an emergency savings fund.

If a saver were to both switch checking accounts and open a savings account exclusively for members, they could make more money than if they opened the best low-threshold savings account in the wider market.

HSBCs Online Bonus Saving account is essentially an easily accessible deal paying 3 percent on deposits up to £10,000, exclusive to HSBC banking customers.

The best ‘non-exclusive’ easily accessible deal currently available pays 2.81 percent, courtesy of Al Rayan Bank. The rest pay 2.55 percent or less.

Someone who deposits £10,000 into HSBC’s account could earn £300 in interest after a year, although the interest rate could change again in the future.

Someone who deposits £1,500 into the checking account and then £10,000 into the Online Bonus Saver would be able to earn £500 in one year from the bank account incentive and savings interest combined.

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

The disadvantage is that the 3 percent rate only applies to the month in which no withdrawals are made. During a month when 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 daily savings that they can dip in and out of.

Nationwide, on the other hand, offers in-credit interest on its FlexDirect bank account and pays 5 percent on deposits of up to £1,500, allowing new members to secure up to £75 per year on top of the £200 registration fee.

To be eligible, customers must make a full switch with the Payment Account Switching Service and at least two active direct debits must be transferred to the new account.

In fact, for someone who has £1,500 in the account for a whole year, that represents over 18 percent return on investment, when the £200 entry bonus is added.

Read the fine print

While the returns offered at HSBC and Nationwide are much better than what typical, easily accessible savers can achieve in the open market, there are a few hoops to jump through.

This means that unlike many of the savings rates on our easily accessible tables, taking advantage of these exclusive bank account deals takes more time and administration.

For those who value an easy life over maximizing the return on their savings, it might be a better option to settle for one of the deals at the top of the tables.

For example, three app-based challenger banks, Zopa, Tandem and Atom Bank, offer easily accessible accounts that currently pay between 2.4 percent and 2.55 percent.

Signing up with one of these providers takes about 10 minutes and can then be managed completely via a smartphone.

But for those who are determined to make their rainy day fund work as hard as possible, switching to HSBC or Nationwide may be a good option.

However, in both cases it’s important to log into the correct bank account – HSBC’s Advance Account and Nationwide’s FlexAccount have no monthly fees, but allow participants to take full advantage of both the switching bonus and savings benefits.

Here are the rules that switchers should be aware of before signing up.

Joiners must complete a full switch from their existing checking account to HSBC using the Current Account Switch Service (CASS), with at least two direct debits or standing orders.

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

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

Unlike HSBC’s offer, Nationwide’s £200 incentive is open to both new and existing members.

Existing members can transfer a current account they have with another provider to an existing account they already have with the Association.

This means that it is still possible for existing Nationwide bank account holders to take advantage of this, as long as they have another bank account elsewhere that they can switch from.

To be eligible for the £200 giveaway, switchers must complete a full switch using the Payment Account Switching Service and set up a minimum of two active direct debits.

It’s worth noting that people are ineligible if they’ve switched from one Nationwide account to another, or if they’ve taken advantage of a previous online checking account switching offer since August 18, 2021.