It’s the highest amount paid since 2018 from the bank and it is now jointly the largest switching offer available.

It comes a month after Nationwide boosted its current account bonus to £200.

Several banks are competing for new customers with switching offers. First Direct, which is owned by HSBC, pays £175 to people switching to its current account while Lloyds pays £150.

Along with cash bonuses, banks are also offering access to higher savings rates, cashback on purchases, and discounts and reward schemes to switchers.

Switchers can benefit from today

The deal from HSBC is available to those who successfully switch to the bank using the Current Account Switching Service (CASS) from today. No deadline is given for how long the bonus will be available for.

To be eligible for the £200, there are certain rules switchers need to follow.

They need to deposit at least £1,500 within 60 days of opening the account and must transfer at least two direct debits or standing orders to the new account. The current account switch must also begin within 30 days of opening a new account.

Once these measures have been completed, the £200 will be paid within 20 days.

Anyone who has opened an HSBC or First Direct current account since 1 January 2019 is not eligible for this offer. People living in the Channel Island or the Isle of Man are also excluded from this deal.

Both current accounts are free but to open a Premier Bank Account, you’ll need to have an income of £75,000 or more, have savings or investments of at least £50,000 with HSBC, or qualify for the account in a different country.

Boost to savings rates

The bank said it has introduced the new switching bonus to help customers with the rising cost of living.

It has also increased rates on its savings accounts. Those with a current account can access a savings account paying 3% interest.

It comes as a range of banks have upped the rate of interest they pay, following the Bank of England’s decision to increase the base rate to 3%.

Yet most market-leading rates are currently offered by challenger banks such as Atom Bank which pays over 5% on some of its accounts.

Tom Wolfenden, HSBC UK’s head of retail, said: “The increased cost of living is having an impact in many different ways.

“While we know that some people are reviewing their daily, weekly or monthly spend, including cancelling hundreds of thousands of unused or unwanted subscriptions, taking a wider, more holistic look at products or services that might provide overall and longer term value could provide some important rewards or savings.”