HSBC has brought back its £200 current account switching incentive.
If you switch to its Advance or Premier account and stay for at least 12 months you’ll be eligible for the bonus – which is currently the biggest cash switching incentive on the market.
An initial £150 is paid soon after you switch via the Current Account Switching Service and set up at least two active direct debits or standing orders. Then, a further £50 will be paid once you’ve held the account for a year, provided you register for mobile or online banking within 60 days of opening the account.
In order to be eligible for an HSBC Advance account, you’ll need to be able to deposit at least £1,750 a month. To open a Premier account, you’ll need either £50,000 worth of investments with HSBC or an annual income of more than £100,000 as well a mortgage, life insurance, investment or protection product with the bank.
Here, we explore how this switching incentive compares with the rest of the market.
Find out more: bank accounts – more than 70 accounts compared
How does the HSBC current account switching incentive compare?
The £200 switching incentive offered by HSBC is the biggest cash bonus available for those switching current accounts.
However, there are some accounts which offer monthly bonuses that would allow customers to earn even more cash in their first year.
The Co-operative Bank tempts new customers with a £150 switching incentive, plus the opportunity to earn up £5.50 a month via its Everyday Rewards programme.
If you switch to M&S Bank, you’ll be rewarded will a £100 M&S voucher card and you’ll get an additional £10 added to that card for every month you deposit at least £1,000 in the first year.
Both of these accounts require customers to meet certain criteria to qualify for monthly bonuses, but the minimum monthly deposit required is much lower (£800 a month for Co-op Bank, £1,000 a month for M&S Bank).
Find out more: switching your bank account – we list the best switching incentives on the market
Earn interest on in-credit balances
Many current accounts are currently offering market-leading interest rates to savers, albeit on smaller balances.
Lloyds Bank offers 4% AER on balances up to £5,000, meaning customers can get up to £200 interest in the first year. There’s a £5 monthly fee, but that’s waived each month you deposit £1,500 into the account.
Nationwide pays 5% AER on balances up to £2,500 in the first year, meaning customers can earn up to £125 interest.
The Santander 123 account currently pays 3% AER on balances up to £20,000 (maximum of £600 a year interest), but in November this drops to 1.5% AER (maximum of £300 a year interest).
The account comes with a £5 monthly fee, but also offers up to 3% cashback on utility bills. As the graph below shows, it’s likely to be the best deal for those with over £16,000 to deposit in a current account.
However, for those with smaller balances who can afford to pay in at least £1,750 a month, an HSBC current account is worth considering.
- See our guide to earning extra interest with multiple current accounts
- Check out our 10 top tips to banking online safely
- Your banking query answered by calling the Which? Money Helpline