HSBC launch new £200 'switch and stay' current account offer

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As with the offer they promoted last year, £150 will be given to new customers who sign up before July 23rd, while the remaining £50 will be given within 30 days of them reaching their first anniversary with the account.

However, while the combined sum of £200 is a generous amount, the conditions of the Advance and Premier accounts mean that customers will have to make considerable monthly deposits in order to qualify.

As such, certain customers may be better off going with other current accounts, which despite not offering quite as large a bonus aren't quite as demanding to run.

Eligibility

Despite not being the first time HSBC have run it, the bank's "switch and stay" offer is fairly novel.

In withholding part of the £200 payout until new customers have stuck with either an Advance or Premier account for a year, it appears to be doing two things at once: encouraging new customers to switch with the enticement of a cash payout, and preventing them from switching to yet another new account by offering them money for staying.

Just how successful they'll be in attempting this isn't entirely clear, yet given that they're going to the trouble of running the deal for a second year, it must have some kind of discernible effect.

To be eligible for the £200 it's offering, new customers have to switch to either a Premier or Advance current account by using the Current Account Switching Service (CASS).

This switch has to be completed within 30 days of the account being opened in their name. Once it has been finished, HSBC state that the initial £150 will be paid into the accounts of new customers within 50 days.

Similarly, to qualify for the £50 payment marking the one-year anniversary, the bank inform new customers that they have to satisfy certain conditions.

In the case of the Advance account, this means that holders have to deposit £1,750 each month into their accounts.

As for the Premier account, its criteria are perhaps out of reach for most people, requiring either of the following to apply:

• Applicant must have savings or investments of at least £50,000 with HSBC in the UK
• Or, applicant must have an individual annual income of at least £100,000 and either a mortgage with HSBC, or an investment, life insurance or protection product

However, if at least one of these does apply, account holders will receive their remaining £50 within 30 days of the first-year anniversary.

Alternatives

Commenting on the £200 bonus, HSBC UK's Head of Retail, Steve Haire, said, "There are a number of reasons customers choose an Advance or Premier account, and now, for a limited period, those switching across to these accounts can also enjoy this £200 offer".

And despite the eligibility requirements of both accounts, it's true that each have more than the £200 to recommend them.

For example, the Advance account includes the following perks:

• £500 daily ATM cash withdrawals
• Preferential rate of 5% AER/Gross on a Regular Saver savings account
• £250 off booking fees on HSBC's Standard mortgage range
• 10% interest cashback on loans between £7k-15k over 1-5 years

However, while these may be attractive features, there are a number of accounts that offer new customers a bonus without requiring regular payments or hefty investments.

There is, for instance, the £125 Marks and Spencer's gift card customers receive when moving to a M&S current account, which also gives one £5 gift card a month to any holder who deposits £1,000 or more (once again in a month).

Yet in addition to such bonus schemes, there are also numerous accounts which include perks as part of their usual monthly workings, such as the NatWest Reward account.

This gives 2% cash back on seven types of household bill paid using Direct Debit, something which would see a "typical" household receive £20 a year on their energy bill alone (assuming they had a standard variable tariff of £1,000).

And because other banks are offering similar features, it goes to show that rather than always going for the bank with the biggest introductory payout, customers would be advised to shop around a bit for the current account that works best for them.