How to get up to £200 free cash from your bank by switching accounts
HSBC has brought back its cash incentive to switch current accounts but there's a catch
IN need of some free cash? HSBC is PAYING customers £200 to switch current accounts and it sounds like a deal that you don't want to miss out on.
But before you ditch and switch, you might want to take a closer look at the offer and make sure the account is the best one for you.
It's the most amount of free cash being offered by a bank for switching - the next best offer is a choice of £199 headphones or £150 Expedia voucher from First Direct, or £125 Marks & Spencer gift card from M&S Bank.
HSBC will give you £150 within the first 50 days of you opening the account and you'll get the final £50 instalment after the first year.
This is more of a loyalty top up to try and convince you not to switch away again in the first year.
To get the cash, you'll need to switch to the bank's premium account, the Advance Account, which comes with a caveat.
Why should I switch bank accounts?
NOT sure what switching could do for you? Here's what you need to know:
- Switching is easy. Under the switching service, swapping banks should take seven working days. That includes all your payments, direct debits and standing orders being moved too. Just open your new account and then ask your new provider to close your old account using the switch service.
- 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.
You'll need to be able to pay in at least £1,750 a month for at least nine months a year, or £10,500 over six months.
You will need to open the account through the switching service though, to avoid missing out on the cash.
Once you've switched, you'll need to set up at least two direct debits or standing orders within the first 30 days.
The bank hasn't given a deadline for applications but number of accounts with this deal are limited so you might want to act soon before the offer is withdrawn.
You will also get a 0 per cent overdraft for the first six months too but after that you'll have to pay a fee.
Having an Advance Account will also make you eligible for a Regular Saver account which will give you 5 per cent on your cash.
If you want to know what the best rates for savers are then you should check out our guide.
The offer is only available to new customers so if you already have an account or had one since January 1 2015 then you won't be able to benefit from the deal.
Before you switch, it might be worth taking a closer look at how HSBC customers rate it for its services - and it doesn't rank that highly compared to other banks.
It's not the first time that HSBC has run the offer - it offered the same incentive back in May this year.
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They're not the only one to offer a deal. Halifax will give you £75 to switch to its reward account – and you get the cash as soon as the switch is done.
Nationwide will give you up to £500 if you recommend five friends to join the building society - that's £100 per pal. Plus they'll get £100 each too.
Before switching make sure you read all of the terms and conditions because some banks charge you a monthly fee for certain accounts.
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