HSBC launches £220 switch and save offer – how does it compare?

If you’re looking for a new bank account, or an easy way to make £220, HSBC has come forward with a new market-leading switching deal.

This is the third switching deal to launch in recent weeks, following NatWest and Lloyds Bank.

Although HSBC is currently offering the most money, you'll need to do a bit of extra legwork to get the full £220 for switching to a HSBC Advance or Premier account. 

Here, we explain how to get the £220, if HSBC is a good provider and how the deal compares.

How to get £220 for switching

For this deal you’ll be paid £100 initially for switching, and a further £10 a month for a year, if you continue to use your new account and deposit £50 a month into an Online Bonus Saver account. 

We don’t know how long this deal will last for. HSBC said it could be withdrawn at any time, so if you’re keen it’s worth looking into sooner rather than later. 

Step 1: switch to a HSBC Advance or Premier account

The HSBC Advance account is a regular bank account with no fees. It also offers an optional arranged overdraft and access to the HSBC Global Money account, which helps you manage, send and spend money in different currencies. 

You also get access to a linked Regular Saver which pays 5% AER on up to £250 a month. 

Once you have your account you’ll have to register and log in for mobile app banking. 

To get the £100 you’ll need to deposit £1,500 within 60 days, set up two direct debits or standing orders within 30 days and make 20 debit card payments.

You’ll also need to deposit £50 into an Online Bonus Saver account. This account offers a lower interest rate than the Regular Savings mentioned above. 

The Online Bonus Saver will pay 2% AER on balances, but you’ll get rewarded for not making any withdrawals with a bonus interest rate that is higher on smaller balances. For balances under £50,000, you’ll get a bonus rate of 4% AER, on balances over £50,000 you'll get a bonus rate of 2.3% AER.

The deal is also available to those who switch to a HSBC Premier account, which has added perks including worldwide travel insurance. However, this account has strict eligibility criteria and you’ll need to earn a minimum of £75,000 per year, so it won’t be for everyone. 

• Find out more: best bank accounts 2024

Step 2: Keep this up for 12 months

HSBC will then pay you an additional £10 for every month you:

• Pay in £1,500
• Log in to the mobile app
• Make 20 debit card payments
• Deposit £50 into your Online Bonus Saver account

This will be easier if you’re using the account as your main bank account, rather than as a side account.

If you’re a savvy switcher who constantly jumps between accounts to pocket the cash, you’ll just need to make sure you remember to meet the criteria each month.

• Find out more: 6 reasons not to switch your bank account

What's in the small print?

You must use the Current Account Switch Service to qualify for the bonus. This will close your old bank account and move any funds and direct debits to HSBC. 

To qualify for the offer, you can’t have held an HSBC current account, or opened a First Direct current account since 1 January 2019. You’ll also need to be a UK resident.

You’ll get paid the £100 into your new account within 30 days of completing all the qualifying criteria. You’ll then have a full calendar month after you receive your £100 to complete the qualifying criteria for the first £10 monthly payment, which will be deposited into your current account by the 20th of the following month. 

• Find out more: how to switch your bank account

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Is this the best way to save?

If you don't make any withdrawals from your Online Bonus Saver account, then after the 12 months you'll have saved £600 of your own money. 

You'll also have earned some interest. However, as this is a variable account you may not get the 4% AER for the whole 12-month period. 

If you want more certainty with your interest, you could deposit the £50 into your Online Bonus Saver and then withdraw it. You can keep doing this each month and still qualify for the £10, according to HSBC. 

Instead, you could put that into the HSBC linked Regular Savings account which pays 5% AER for a fixed 12 months. You won't be able to make penalty-free withdrawals from this account though. 

• Find out more: best savings accounts 2024

Is HSBC a good provider?

HSBC achieved a customer score of 69% in our most recent survey of the best banks – 17th out of 21 providers. 

It scored four stars for its application process, but a middling score for its customer service in general, online banking service, dealing with complaints and its mobile banking service.

It received two stars for its branch service, telephone banking service and calling customer services. 

You can also see how the providers stack up for customer service in our guide to the best bank accounts.

How the switching deal compares

There are currently two switching deals on the table right now.

NatWest – £200

NatWest is offering £200 for people switching to its Reward or Select bank accounts.

The Reward account has a £2 monthly fee, but it allows account holders to earn up to £5 a month back in 'rewards'. These consist of a payment of £1 for logging in to the mobile app, and £4 for two or more direct debits worth at least £2. 

Account holders can also get 1% cashback at some retailers.

The Select account is a more basic everyday bank account, with no monthly fees or rewards. 

• Find out more: NatWest launches £200 switching bonus

Lloyds – £175

The £175 bonus is available to new customers switching to a Club Lloyds account, which includes the Classic as well as the Silver (£10 a month) and Platinum (£21 a month) packaged accounts.

All Club Lloyds accounts come with the option to pick one lifestyle benefit a year. 

The Silver account comes with European and UK family travel insurance, AA breakdown family cover and mobile phone insurance. 

The Platinum account includes all the same features but with worldwide family travel insurance.

There’s a £3 fee for maintaining any of the Club Lloyds accounts (in addition to the packaged account fee), but it will be refunded each month if you pay in £2,000 or more.

• Find out more: should you switch to Lloyds for £175