HSBC is offering new customers £200 to switch – but is it worth the hassle and are there any catches?
The free cash is available to anyone who switches to an HSBC Advance or Premier account
HSBC is offering £200 to new customers who switch to the bank - but the offer comes with strings attached.
The incentive - which the bank hopes will attract new customers - is available until July 23 to anyone switching to the HSBC Advance or Premier accounts.
Anyone who has been an HSBC customer since January 2015 is excluded.
The cash bonus does come with some catches to watch out for.
The cash payment is split into two parts. Customers will get £150 paid straight away once they switch to their new account, while the second payment of £50 will be paid into their account if they choose to stay with the bank for at least 12 months.
In order to be eligible, HSBC’s Advance account requires customers to pay in a considerable sum of £1,750 every month, or a minimum £10,500 every six months.
The Premier account is even more demanding, as customers will need to have savings or investments of at least £50,000 with HSBC in the UK or be earning £100,000 or more a year.
Account holders for both accounts will also need to move over at least two direct debits or standing orders.
Hannah Maundrell, editor-in-chief of told the Sun Online: “This is a great deal if you’re new to HSBC and are definitely going to be able to pay in £1,750 a month into the account. The HSBC Advance bank account has no monthly fee, so they really are just paying you to switch which is great.
“They only pay you £150 of the £200 teaser upfront to ensure your loyalty, however after the 12 months is up you can and should look to switch again to different bank which could give you a better deal."
How do I switch bank account?
MOST banks will require new customers to switch using the free Current Account Switch Service.
This programme takes care of the bank switching process for you by moving all your incoming and outgoing payments, moving your outstanding balance and closing your old account.
The majority of banks are signed up to the service so you’ll use it automatically when applying and switching to a new account via the bank’s website or in branch.
The guarantee means that if anything goes wrong with the switch you will be refunded for any financia losses incurred.
HSBC isn't the only bank offering money rewards for new customers.
New TSB customers can make up to £250 in year by switching to the bank.
The bank gives £130 to any customers who switch their existing current account to the TSB Classic Plus current account via this special , and customers can earn an additional £120 during the first year in cashback.
The deal runs until 26 June.
Is switching worth the hassle?
Switching bank accounts does require some effort, but yes it is worthwhile to switch if the bank you’re switching to offers a higher rate of interest than you’re currently getting, good perks (such as free travel insurance) and has good customer service.
Switching just for the cash perk when you’re with a bank that offers good service, low overdraft rates and decent interest, may not be the right decision for you.
With the Current Account Switch Service it’s relatively easy and hassle-free to switch, because they take care of the whole process for you and have an obligation to switch your current account with seven working days.
If the switch takes longer and you lose money as a result – such as a direct debit not being paid and you’re charged a fee – they have to refund you.
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