The bank has increased its switching bonus to £125 from £75, which is available to all customers who use the Current Account Switching Service (CASS) before 31 July 2017.

During the first year, it is also offering a further £36 paid in 12 x £3 monthly payments but customers must deposit a minimum of £750 a month, pay two direct debits a month, and remain in credit to receive the perk.

Three other banks offer cash incentives to switchers using the guarantee service.

HSBC will pay customers switching to its Advance Account £150 plus an extra £50 after 12 months.

The Co-operative will pay new customers £110 plus £4 a month if they pay in £800 a month and have four direct debts.

First Direct’s 1st Account offers £100 cash if the account is credited with £1,000 within three months.

Meanwhile, M&S Bank offers a gift card worth £125 plus a £5 gift card top up every month if customers pay in at least £1,000 a month and have two direct debits for 12 months.

Rachel Springall, finance expert at Moneyfacts, said: “The switching incentive from Halifax will likely appeal to those looking for a new current account with a high street brand. There is more to be gained in upfront cash by switching elsewhere though, such as with HSBC, but customers need to make sure the account has the right overall package for them.

“The Halifax current account may not be the best choice if customers plan on dipping into their overdraft, because of its daily usage fees.

“It’s worth remembering that customers looking for a cash reward when they switch will likely have to meet certain eligibility criteria, which could mean funding the account by a certain amount, or set up online banking or direct debits, so it’s important to be aware of these before switching.”