First Direct £175 switching offer ending soon – is it worth going for?

First Direct’s popular £175 switching deal made a comeback in March, but time is running out to take advantage as the offer ends on 22 April.

However, before switching your bank account for cash, it's worth finding out how the new provider measures up for customer service – and this is where Which? can help. 

Here, we reveal if the First Direct account is any good and how to get the £175 bonus.

What does the First Direct account offer?

First Direct only offers one current account, but it packs a punch.

The 1st Account comes with no monthly fee and offers a £250 interest-free overdraft buffer. However, if you borrow more than £250, you'll pay 39.9% EAR.

It also offers fee-free spending abroad. Before the bank scrapped its fees in 2023, customers used to pay 2.75% to withdraw cash or spend money abroad.

You can also get access to a 7% AER regular saver account. You’ll need to put away between £25 and £300 each month for a fixed 12-month term.

• Find out more: best bank accounts for overdrafts

What's in the small print?

The switching incentive is available until 22 April.

You’ll need to use the Current Account Switch Service to be eligible for the offer, and switch at least two direct debits or standing orders.

Other requirements include depositing a minimum of £1,000 into the account within 30 days of opening, and registering and logging into digital banking. 

This deal is only available to new customers, who haven’t previously held a First Direct product. You also won’t be eligible for this deal if you’ve held a First Direct or HSBC current account on or after 1 January 2018.

First Direct said customers can expect to be paid the £175 within a month of meeting all the requirements.

• Find out more: how to switch your bank account

Is First Direct a good provider?

First Direct achieved a satisfaction score of 82% in our most recent survey of banks, leaving it 2nd out of 21 providers. It's one of our Which? Recommended Providers for 2024. 

In fact, First Direct has remained at or near the top of our tables for as long as we've been surveying the public.

It scored a maximum five stars for its customer service and how it deals with complaints, and four stars for its telephone banking, online banking, mobile banking and calls to customer services. 

First Direct also performed best of 11 banks in a Which? investigation into fraud helpline waiting times.

It’s worth noting that First Direct is a division of HSBC. If you have accounts with both, you should limit deposits to below £85,000 across both brands so your money is fully covered by the Financial Services Compensation Scheme.

• Find out more: best banks 2024

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How does it compare?

There are currently no alternative switching deals on the market  right now.

Santander withdrew it's £185 offer less than a month after launching it, while the NatWest £200 offer has also expired.

So if you want a cash incentive to switch First Direct is the only option at the moment. 

However, switching incentives are launched and withdrawn regularly, so if you have your eye on another account with another provider it might be worth waiting to see if another offer comes along.

This story has been updated since it was first published on 26 March 2024. At the time there were five switching offers available, as of 19 April 2024 there is only one.