New customers are eligible for the offer when opening a Premier or Advance bank account, while switchers opening HSBC’s basic current account can get £75.

To get the offer, you need to set up two direct debits or standing orders and you can’t have been an HSBC current account holder since 1 January 2017. If you have an M&S or First Direct account, you still qualify. The switch also needs to be made via the Current Account Switch Service (CASS).

For the Advance account, customers need to pay in at least £1,750 a month (or £10,500 every six months, excluding transfers from other HSBC accounts).

The HSBC Premier account is available to those who pay in their annual salary and meet one other criteria, such as having a mortgage with the bank, an annual salary of £75,000+, savings or investments of £50,000 with the bank or hold a Premier account in another country.

Once your new HSBC current account has been opened, you should receive the money within 30 days. Customers switching to any of the three accounts can earn 2.75% as part of its regular savings offer when depositing between £25 and £250 a month (for 12 months).

Fiona McCaffrey, head of everyday banking at HSBC UK, said: “The new year is a great time to reflect on spending and saving habits and make changes for a financially healthy 2020.

“HSBC UK research found that over a third of people (38%) stay loyal to their current account provider, and therefore could be missing out on better deals. Switching accounts takes minutes and as well as an upfront cash boost, customers can sometimes benefit from improved rates and product options.”

HSBC UK and YouGov data also found that one in four (39%) people who received £175 for switching accounts would add it to their savings pot, followed by paying off debt or an overdraft (15%).

‘Cash offer could be tantalising’

In recent weeks, a number of banks have pulled their cash incentives for current account switches, including:

• Lloyds Bank Club Lloyds – £125
• RBS Reward Account – £150
• Ulster Bank Select Current Account – £150
• NatWest Reward Account – £150.

Rachel Springall, finance expert at data site Moneyfacts, said it’s great to see the £175 switching cash offer back for 2020 after a brief absence a few weeks ago.

“January could well be a prime time for consumers to consider switching their bank account for something new – so a cash offer could be tantalising. As with any bank account, it is important consumers weigh up all the benefits on offer and any charges to ensure it is the right deal for them,” she said.

The table below shows the best current account switching deals on the market: