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Join Which? MoneyHSBC launches £205 cashback offer on current accounts - what’s the catch?
New customers don’t have to switch banks but will need to open two accounts
HSBC has launched a market-leading cashback offer for new customers signing up to an HSBC Advance or Premier account who also open a Global Money multi-currency account.
There are a few hoops to jump through, but if you meet the criteria you can get £125 in 20 days and a further £80 in May 2024.
Unlike other current account offers on the market, the HSBC deal doesn’t require you to switch your bank account and close your old account.
Here, Which? explains how to get the full £205 and how HSBC's switching offer compares.
How to get £205 cashback from HSBC
There are two parts to unlocking the cash with the HSBC offer.
Part one: unlock £125 in 20 days
First, you’ll need to open a new HSBC Advance or Premier account either online or in a branch.
Then within 60 days of opening the account, you will need to deposit £1,500, make at least five transactions using the current account debit card, and open an HSBC Global Money account (a digital multi-currency account) via the app and order the Global Money debit card.
You don't have to keep the £1,500 in the account, and there’s no minimum spend on the five transactions, but the following types of spending are excluded: gambling transactions, credit card or insurance payments, cash withdrawals and card-to-card payments.
If you fulfill this criteria, you’ll get £125 paid into your Global Money account within 20 days.
Part 2: get a further £80 in May 2024
To get the £80 bonus you’ll need to use your Global Money debit card five times by 21 April next year.
The £80 will be paid into your Global Money Account between 1 May and 8 May 2024.
You’ll also be entered into a prize draw with a chance to win one of 24 £3,000 cash prizes, which will take place on 29 April 2024.
- Find out more: best banks 2023
What’s in the small print?
To qualify for the offer you can’t have held an HSBC current account, or opened a First Direct current account, since 1 October 2018. You’ll also need to be a UK resident.
You’ll automatically be entered into the prize draw, unless you opt out, and you’ll need to be over 18. Winners will be notified on 29 April 2024.
What are the potential drawbacks?
Opening a new current account will involve a search being carried out on your credit file and a new product being put on your credit report which, as a result, may lead to a small temporary drop in your credit reports: all you need to know.
A lower credit score could impact your ability to be accepted for credit, so if you need to apply for a mortgage, personal loan or credit card soon, it may be best to hold off on opening the HSBC account.
- Find out more: how to check your credit score for free
What do the HSBC accounts offer?
The HSBC Premier account comes with perks such as worldwide travel insurance and a £500 fee-free overdraft, but you need to earn at least £75,000 and have an existing HSBC product to qualify.
The HSBC Advance account is a fee-free no-frills account. Its main highlight is offering access to a linked regular saver which pays a fixed 5% AER on deposits up to £250 a month, for 12 months, but that pales in comparison to Nationwide which offers customers access to a table-topping 8% AER.
The HSBC Global Money account allows you to store, spend and send money in multiple currencies with no HSBC fees using the Global Money exchange rate.
You can spend or withdraw cash using the Global Money debit card, send money in 50 currencies across 200 countries and regions, and store up to 18 currencies in your account to use later. This means you can convert a currency when a rate is competitive rather than at the point you use your card, like with a travel credit card.
The Global Money exchange rate is made up of what it costs HSBC, plus a foreign currency conversion margin that it includes, which means it might not be the most competitive on the market.
But your money is protected by the Financial Services Compensation Scheme which means you're protected for up to £85,000.
- Find out more: best savings accounts 2023
Is HSBC a good provider?
HSBC came joint 18th out of 21 providers in our latest customer survey on banking providers.
It achieved a score of 69%, with customers giving it four out of five stars for its application process and three stars for customer service, dealing with complaints and its online and mobile banking service.
- Find out more: best banks 2023
Which banks will pay you to switch?
If you do fancy switching, there are three offers on the market right now.
For all these deals you’ll need to use the Current Account Switching Service to be eligible for the cash bonus.
Nationwide £200
New customers can get £200 by switching to one of Nationwide’s three main current accounts:
- FlexAccount - a standard everyday account where customers can bank online and in a branch for no fee.
- FlexDirect - an online account paying 5% credit interest on balances up to £1,500 for the first 12 months (you'll need to pay in at least £1,000 each month).
- FlexPlus - a packaged account costing £13 a month. Benefits include worldwide family travel insurance, mobile phone insurance for your whole family, vehicle breakdown cover across the UK and Europe, and commission-free debit card spending abroad.
The building society is also offering a table-topping 8% AER regular savings account, available to existing current account customers.
Lloyds £175
Lloyds is offering new customers £175 to switch to any of its Club Lloyds accounts. You’ll also earn interest of 1.5% on balances between £1 and £3,999.99, and 3% on balances between £4,000 and £5,000.
All Club Lloyds accounts give you the option to pick one lifestyle benefit a year. At the moment that includes a 12-month Disney+ subscription, six cinema tickets, an annual magazine subscription or an annual Coffee Club and Gourmet Society membership – giving you 25% off at Caffè Nero and 25% off your bill at thousands of restaurants.
First Direct £175
First Direct, a Which? Recommended Provider, is offering a £175 bonus to new customers who move to its 1st Account.
The account offers access to a regular saver, which pays 7% AER for 12 months, and a £250 0% overdraft, which is subject to status.
To qualify for the incentive, you need to switch using the Current Account Switch Service, pay in at least £1,000 within three months of opening the account, and must not have been an HSBC current account holder on or after 1 January 2020.
- Find out more:how to switch your bank account
