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HSBC offers £200 switch incentive…if you can meet its strict criteria

Paloma Kubiak
Written By:
Paloma Kubiak

People who switch to one of two HSBC current accounts will receive £200 cash as part of the bank’s new offering to entice customers – but they’ll have to jump through some hoops first.

Anyone switching to the HSBC Advance or HSBC Premier bank accounts until Sunday 10 July will receive £200, one of the largest switch incentives we’ve seen and the largest currently available.

But the cash payment is split into two parts: you get £150 paid up front into your new account once you successfully go through the Current Account Switching Service.

The second payment of £50 is paid as cash into your account after 12 months, as long as you hit the eligible criteria for nine out of the 12 months.

Who’s eligible?

There are no monthly fees for either account but there are minimum salary criteria.

In order to switch to the HSBC Advance bank account, you need to pay in at least £1,750 per month (or a minimum £10,500 every six months), excluding money transferred from any other HSBC account.

If you’re considering a switch to the HSBC Premier account, you need to have savings or investments of at least £50,000 with HSBC in the UK or be earning £100,000 or more a year.

Account holders for both will need to have a minimum of two standing orders or direct debits.

HSBC confirmed to YourMoney.com there is no in-credit interest with the accounts and in order to receive the second £50 payment, you must register for internet/mobile banking within 60 days from the account being opened.

The account also needs to be open for you to receive the anniversary payment.

How good is it?

Earlier this year, M&S revamped its reward offering with a £100 gift card plus £10 per month for a year for customers switching to it.

Barclays and The Co-operative then waded into the current account war, with the former doubling its usual cash rewards and the latter unveiling it £5.50 per month incentive.

Andrew Hagger of MoneyComms.co.uk said the £200 from HSBC is “currently the largest switching incentive” ahead of the Co-op Bank, which is offering £150 and Halifax and First Direct both offering £100.

He said: “These accounts won’t be the most suitable for everyone –  you shouldn’t choose a bank account based purely on the upfront cash incentives – it’s about finding an account that matches the way you run your finances on a day-to-day basis and suitable for the longer term.”

Is there anything else I need to know?

Here are some of the benefits of each HSBC account:

HSBC Advance Bank Account

  • Automatic enrolment to its overdraft text alert so you don’t go beyond your agreed overdraft limit
  • Preferential overdraft rate with an interest rate of 17.9% EAR
  • 6% AER/Gross with a Regular Saver account when you open current account
  • A £500 daily ATM withdrawal allowance.

HSBC Premier Account

  • Access to financial advice across education, insurance, retirement, legacy, protection, managing and growing wealth
  • A £1,000 daily ATM withdrawal limit
  • Preferential overdraft rate with an interest rate of 11.9% EAR – with the first £500 free from overdraft interest. There are no daily informal overdraft usage fees
  • Worldwide travel insurance for those aged under 70
  • Fee-free international fund transfers
  • 6% AER/Gross with a Regular Saver account when you open current account