HSBC offers a £220 switching bonus to new customers

Customers could receive up to £220 by switching their current account to HSBC and opening an Online Bonus Saver.

HSBC has launched a new switching deal, offering up to £220 to new customers who move their existing current account to a HSBC UK Advance or Premier Account using the Current Account Switch Service (CASS).

Customers need to meet certain criteria to receive the full bonus, including opening a HSBC Online Bonus Saver and depositing money in there every month.

“HSBC has joined the small group of providers currently offering cash incentives to attract consumers,” commented James Hyde, spokesperson at moneyfactscompare.co.uk.

“This switching offer of up to £220 makes it potentially the most lucrative on the market at present. However, it’s worth pointing out that £120 of this figure is dependent on regular deposits being made over 12 months,” he continued.

Switching requirements

To receive the first £100 of the bonus, you need to switch your existing current account (with a minimum of two direct debits or standing orders) within 30 days of opening a HSBC Advance or Premier account.

And, within 60 days of opening the account, you also need to register and log on to mobile banking, deposit at least £1,500 into the account and make at least 20 transactions with your debit card.

Furthermore, you need to open an Online Bonus Saver and deposit at least £50 into this account. Including the bonus, this savings account pays 4.00% AER on balances up to £50,000 (but if you make a withdrawal, you’ll receive a lower rate of 2.00% AER for that month).

As long as you continue to deposit at least £50 per month into the Online Bonus Saver and meet all the above conditions, you can get an additional £10 bonus each month, up to a maximum of £120.

If you don’t make a deposit one month and miss out on a bonus, you could still get the bonus next month if you meet all the necessary requirements.

Bear in mind this deal isn’t available if you are a current HSBC UK or first direct customer, or if you’ve been a customer since 1 January 2019.

How does it compare?

NatWest and Lloyds Bank also offer switching incentives of £200 and £175 respectively.

But it’s important to check the terms of the switching deal and the account, not just the size of the incentive, to make sure it’s suitable for you.

For example, Lloyds Bank charges a fee on the accounts with the switching incentive while the HSBC Premier account has some strict eligibility criteria, including a minimum income of £75,000.

“Switching offers such as these are a great way of securing an instant cash injection, and incentives to encourage continuous saving are always a welcome option too,” Hyde remarked.

“The process of transferring a current account is often very straightforward, so consumers would be wise to consider their options if they like what they see elsewhere,” he concluded.

Opening HSBC’s Online Bonus Saver is necessary to receive the switching bonus, but it’s worth noting that there are other higher-paying savings account available.

The top easy access savings accounts pay in excess of 5.00% AER, with higher rates available if you’re willing to lock your savings away for one year.