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HSBC will pay you £125 if you switch your current account to it – here’s how it works

HSBC has brought back its £125 cash offer for new customers who switch their current account.

It's the most amount of free cash currently being given by a bank for switching, with the next best offers being £100 cashback from both Lloyds and Royal Bank of Scotland.

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The new £125 switch offer from HSBC is the best cash incentive being offered by a bankCredit: PA:Press Association

However, it's £50 less than the £175 switch gift the bank gave new customers back in December 2019.

The £125 cashback offer is available when you switch to a HSBC Advance or HSBC Premier account.

But before you ditch and switch, you’ll want to take a good look at these accounts to make sure HSBC is the bank for you.

For example, its Advance account comes with a hefty minimum monthly pay-in of £1,750, or a minimum of £10,500 every six months.

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. In order to qualify for switch gifts, it's likely you'll need to use the Current Account Switch Service. This is free to do and does most of the work for you, including closing your old bank account.
  • Make sure you are eligible. Most accounts have certain requirements, such as paying in a minimum amount of cash each month.
  • Watch your overdraft. Check your new bank will offer you the same limit — and does not have higher costs for using it.
  • Keep an eye on fees. Does your new bank charge a monthly fee for using it? Or is it more expensive than your current lender when it comes to using an unarranged overdraft?
  • Perks include an arranged overdraft of £1,000, and there’s no monthly fee for using this account.

    Having an Advance account will also make you eligible for a Regular Saver account which will give you 2.75% on your cash.

    For the HSBC Premier account, you’ll need to have a minimum salary of £75,000, plus a HSBC mortgage, investment, life insurance or a protection product.

    You can also qualify by having £50,000 in savings with an existing HSBC account.

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    - you won't be eligible if you make the switch in a HSBC branch.

    As well meeting the above criteria, you’ll need to set up at least two direct debits or standing orders within 30 days of opening your new account.

    You must also not have previously opened a HSBC current account of any type since January 1, 2017.

    There's currently no end date for the switch offer, although the bank could choose to pull it at any time.

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    In other banking news, HSBC is cutting 35,000 jobs over three years as profits fall 33%.

    Santander also announced in January last year that it would shut 140 branches putting 1,270 jobs at risk.

    In August, Barclays also confirmed it would be closing a total of 63 branches before the end of the year.

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