£200 current account switching offer launched by HSBC as competition intensifies

The £200 switching deal is being offered by HSBC UK from Monday April 17.

HSBC UK has reintroduced its £200 current account switching offer and is boosting some savings rates, as the battle to attract customers heats up (Aaron Chown/PA) (PA Archive)

HSBC UK has launched a new £200 current account switching offer and is boosting some savings rates, as the battle to attract customers heats up.

The switching offer is available on the bank’s Advance or Premier Bank Account for people using the Current Account Switch Service (Cass).

The £200 switching deal is being offered from Monday April 17, with no end date currently set.

To qualify for the cash, customers must complete a full switch of their existing current account using Cass, with at least two direct debits or standing orders. They must start the switch within 30 days of opening their new account.

They must also deposit at least £1,500 into the new account within 60 days of opening their new account.

I strongly encourage customers to get in touch with us and their other suppliers early if they have money concerns or see financial difficulties on the horizon

Pella Frost, HSBC UK

Customers will not qualify for the offer if they have held an HSBC UK current account since January 1 2020 or have opened a First Direct current account since January 1 2020. They may hold a First Direct account if it was opened before January 1 2020.

The £200 will be paid within 20 days of the terms being satisfied.

Several increases to HSBC’s savings rates are coming into effect from April 20, including a 0.25 percentage point increase on the bank’s Online Bonus Saver instant access account, rising to 3.50%, on the first £10,000 saved.

The bank’s One Year Fixed Rate Savings Account rate increased by 0.50 percentage points to 4.00% from March 30.

HSBC UK also said that it recorded a 15% increase in the total number of customers using its mobile banking app in February this year, compared with February 2022.

This was in addition to a 19% increase in the total number of app log-ins over the same time period, suggesting more customers are keeping a closer eye on their finances.

Pella Frost, HSBC UK’s head of everyday banking, said: “We are here to help our customers, and it is extremely encouraging that they are also helping themselves by keeping an eye on their finances.

“I strongly encourage customers to get in touch with us and their other suppliers early if they have money concerns or see financial difficulties on the horizon.

“If you are up to date with your payments, contacting us to let us know about any money worries you have won’t impact your credit file. We stand ready to help.

“We would also encourage people to make the most of our wider package of support and information. Anyone can sign up to a session with a financial wellbeing consultant, regardless of whether they are a customer or not.”

Other current account providers are also offering cash to switch, including NatWest, which is also offering £200 and First Direct, which is offering £175.