HSBC launches £220 bank switching deal - should you move banks?

This HSBC bonus is no longer on the market. Please see our best bank switching guide for the latest deals. 

The switching incentives scene ran dry in the new year, but competition is heating up again as HSBC launches a £220 switching deal to draw in new customers. 

This is the biggest switch deal now available and is HSBC’s biggest cash bonus in five years, with its previous deal offering £205 last October. 

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The high street giant has been a popular name in the pool of switching incentives, with data from the Current Account Switch Service (CASS) showing HSBC gained 25,037 bank switches in the third quarter of 2023. 

HSBC joins NatWest and Lloyds Bank in offering free cash which launched deals back in mid-February. 

Even though its incentive is the highest offer on the table right now, is it any good and how do you get the free cash? 

How to get up to £220 when you switch to HSBC

HSBC is offering up to £220 when new customers switch to its UK Advance or Premier bank account, using the banks's switch service. 

But, the £220 is broken down into two parts. Here are all the details. 

How to get £100 

To get £100, you must open one of the eligible HSBC current accounts, use the CASS to make the switch, and complete the following:   

• Switch at least two direct debits or standing orders within 30 days of opening the account
• Pay £1,500 into the account within 60 days of opening the account
• Make more than 20 direct debit payments using your new HSBC debit card
• Pay more than £50 into the HSBC Bonus Saver account

How to get an additional £120 

On top of this, you can get £10 a month for 12 months (total of £120) by doing the following every month:

• Pay in £1,500 monthly into your HSBC current account
• Make more than 20 direct debits each month
• Pay in more than £50 into your Online Bonus Saver
• Log into the HSBC mobile app at least once a month

You won’t be eligible for this switching incentive if you have held an HSBC or First Direct current account since 1 January 2019.  

What’s the difference between the HSBC current accounts? 

The two eligible current accounts in the switching deal are HSBC’s Advance or Premier account. Here’s how they differ.  

HSBC Advance account

The Advance account is free to hold and you can access its 5% regular saver which allows you to save between £25 and £250 a month. 

See how this compares to the 7% top regular saver in our best buy guide. 

The account gives an optional arranged overdraft on a minimum £1,000, depending on your credit history. 

Plus, you can get discounts on eating out, shopping and travel with the Advance account. 

HSBC Premier account

This current account also has no monthly fee but comes with more attractive benefits. 

Including everything that you get with the Advance account, you also get worldwide travel insurance through Aviva. 

You also get access to HSBC’s loyalty cash ISA, offering a 3.2% return. But this isn’t the best rate on the market, as currently you can earn above 5% in the wider market. 

Plus, gain access to HSBC’s two exclusive reward travel credit cards which let you earn rewards and freebies. 

What are the alternative switching deals?

HSBC is leading in the switching incentive market right now, with its up to £220 offer. 

That said, it does require new customers to do a fair bit to earn £100, and a further £120 is even more difficult to get as you need to stick to its monthly requirements. 

Plus, even though you get exclusive access to its savings accounts, they are far from the best deals on the market. 

Natwest is the next best switching incentive on the market offering £200 when you switch to one of its packaged bank accounts- however these hold a monthly fee, starting from £2 a month. 

Lloyds is offering £175 when you switch to one of its Club Lloyds accounts. But again, as these are packaged bank accounts, they come with a monthly fee starting from £3 a month. 

You get access to its 6.25% regular saver. 

The most important thing to remember is when you’re thinking about switching bank accounts, it shouldn’t just be for the free cash bonus. 

You will need to shop around to see which current account suits your needs best. For example, you might be looking for a no-free current account or a packaged bank account that offers travel insurance and AA breakdown cover. 

Some other things to consider when switching also include which lenders offer the best savings rates and an arranged overdraft that is one of your requirements.