HSBC will pay new customers £220 to switch current account

HSBC is paying new customers £220 to switch current account, making it the beefiest bank switch offer available right now.

Rivals Barclays and NatWest are both paying a slightly lower £200 to switch.

Meanwhile, First Direct, which is part of the HSBC group, has boosted its long-standing £175 bribe to £200.

To bag the £220 from HSBC you must switch using the current account switch service (Cass). 

You must switch over at least two direct debits to the new account, and deposit at least £2,000 within 60 days of the account opening.

The bank also asks that you spend £500 using your debit card within that timeframe, which is an extra hoop to jump through in comparison to other deals. Neither Barclays nor NatWest ask for a minimum spend.

You’ll get the £220 within 60 days of meeting the requirements of the incentive.

Should you switch and bag the incentive?

It’s a fruitful time for those prepared to switch their current account, with four banks paying £200 and above.

But it’s important to look beyond eye-catching offers and deals to consider whether the account is right for you.

HSBC’s option comes with an optional overdraft and includes a £25 interest-free amount.

It also gives you access to a Global Money account.

This lets you send money abroad without paying any fees to HSBC, and allows you to spend and withdraw money abroad with no bank fees.

In terms of perks, the best you’ll get is offers on shopping, dining, travel and other experiences through the bank’s Home&Away scheme, although not all the offers are eligible to every customer.

For example, you need to check out with an HSBC credit card to take up some of the deals.

You can find better perks elsewhere. 

Santander pays 1 per cent cashback on select household bills through its Edge and Edge Up current accounts, and is offering £180 to switch. These come with monthly fees of £3 and £5 respectively, so you should make sure you can earn that back in cash or savings interest.

HSBC is paying a better bribe for those who earn £100,000 or more or who have £100,000 in savings and investments.

These customers can switch to an HSBC Premier account and earn £500 in the process.

Rush of Isa applications has led to delays at HSBC

Our consumer champion and deputy editor, Helen Crane, reported in May that HSBC customers transferring an Isa have faced long delays.

While the process is different to the current account switch service, an incentive paying up to £1,000 for transferring an Isa appears to have overwhelmed the bank.

Banks should normally complete a cash Isa transfer within 15 days, but some customers have been waiting far longer than this.