NatWest and HSBC introduce switching cashback incentive

In the past week alone, two banks have introduced a cashback switching incentive on their bank accounts, which could be the start of increased switching competition among providers.

In total, now six providers offer an incentive to switch accounts, which compares to just two providers – M&S Bank and first direct – offering incentives at the beginning of August 2019. Indeed, NatWest and HSBC, Ulster Bank and Royal Bank of Scotland (RBS) have all introduced switching incentives during the last month.

Banks and building societies will offer customers an incentive, typically cashback, in return for them opening a bank account with the provider. Usually, to get the incentive, the customer has to meet the terms and conditions of the deal. NatWest, for example, has introduced a £150 cashback incentive for new customers who move their current account to the bank and opt for one of its standard or packaged accounts.

HSBC has introduced cashback incentives on three accounts. HSBC Premier Bank Account and HSBC Advance Bank Account both offer £175 to be paid into the opened account within 30 days of switching, while HSBC Bank Account offers £75, which is paid into the account within 30 days of switching.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “After a summer lull of switching cash incentives, it’s exciting to see the return of upfront perks from a variety of familiar brands in the market.

“If customers are tempted then they may not want to wait too long to switch, as cash perks can have a short life span and be pulled without much notice. However, it is important that consumers check the whole package of a current account before they switch to ensure they choose the right deal for them and not be dazzled by the upfront cash alone.”