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

HSBC is reintroducing its £200 bank account switching offer in a bid to entice new customers.

It puts HSBC on par with NatWest and RBS, which are also offering a £200 cash sweetener to new joiners. HSBC previously withdrew the incentive on 22 December last year. 

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

Switchers will need to have at least two direct debits or standing orders set up, and start the switch within 30 days of opening their new account. 

Cash in: HSBC is reintroducing its £200 current account switching offer in addition to increasing savings rates, the bank has confirmed

To secure the £200, they also must deposit at least £1,500 into the new account within 60 days of opening it. The cash will then be paid within 20 days of this all being completed.

However, customers will not qualify for the offer if they have held an HSBC bank account or opened a First Direct account since 1 January 2020. They may hold a First Direct account if it was opened before 1 January 2020.

The bank is also upping rates on a number of its savings deals.

Most notably, on Thursday 20 April it is upping the rate on its Online Bonus Saver instant access account from 3.25 per cent to 3.5 per cent on balances up to £10,000.

However, one drawback is that for any cash held over the £10,000 cap, the rate will drop to 2 per cent.

The other drawback is that the 3.5 per cent rate only applies for any month in which no withdrawals are made. 

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

Should you switch bank account? 

Most people rarely think about switching bank accounts, with two-thirds of people not having considered switching their current account, according to HSBC research.

Its research also shows that more than half the population have had the same current account for more than a decade, with more than two in five staying put for even longer at more than 15 years. 

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

That said, there were almost 1 million switches last year, according to the official switching service, representing a 20 per cent rise on the number recorded the previous year.

More than 8.8 million people have now switched bank account since the Current Account Switching Service launched in 2013.

If it’s free cash that you’re after, you don’t necessarily have to choose HSBC.

A number of banks are offering free cash simply for switching. First Direct is paying £175, while NatWest and RBS are offering £200.

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

NatWest and RBS are offering their highest-ever bank account switching incentive, with new and existing customers receiving £200 for doing so.

Anyone switching their main account to either NatWest’s or RBS’s Reward account or Select account will be eligible if they log into mobile banking and pay in at least £1,250.

Those going for the Reward account should know it comes with a £2 monthly fee. 

However, they will also be able to earn a monthly £4 cashback for setting up two direct debits a month and £1 a month if they log into mobile banking each month.

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

There are plenty of perks offered by banks in different guises. Some don’t charge you for using their cards abroad, others give cashback on spending.

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

> Read our guide to the best bank account deals available

This post first appeared on Dailymail.co.uk