The current account switching battle is simmering away with HSBC now offering a £20 Uber Eats takeaway bribe on top of its £125 cash incentive.
HSBC relaunched its cash bonus fir joining in February just months after suggesting customers could have to pay for current accounts.
This latest move to offer a total of £145 worth of incentives could be a play to attract a younger generation of current account customers, many of whom have been tempted in by new digital-only banks such as Monzo and Starling.
Extra tasty? HSBC could be looking to attract some younger switchers with its Uber Eats voucher
Latest current account switching figures show that between 1 July and the end of September, it hemorrhaged a net 14,863 current account customers who used CASS to head to pastures new – of this figure, it gained 5,998 switchers, but lost 20,861.
This outflow was far larger than the next two biggest losers, Santander and NatWest, who lost a net 10,029 and 9,717 customers respectively.
The extra bonus is available for three weeks and runs until Sunday 9 May.
Customers will receive £125 cash when they switch using the Current Account Switch Service within 20 days of the account opening as well as information on how to redeem their Uber Eats voucher.
In order to qualify, switchers will need to set up at least two standing orders or direct debits and be prepared to pay at least £1,750 into the account each month or a minimum of £10,500 every 6 months.
HSBC’s improved offer is available to all those switching to HSBC’s Advance or Premier current accounts – although it isn’t available to those who’ve held one at any time since 1 January 2018.
Customers will receive information on how to redeem their £20 Uber eats voucher within 20 days of the switch completion. The reward must be claimed within 30 days of that email.
Those who’ve opened a First Direct account since 1 January 2018 will also be unable to take advantage.
The Uber Eats voucher, which can be used in conjunction with other promotions, offers a £20 discount on items including delivery charge and is available to both new and existing Uber Eats customers.
‘Thanks to the recent easing of the lockdown measures, we have more options to safely meet with friends and family in our garden,’ said Fiona Anderson, head of everyday banking at HSBC .
‘So whether you decide to invest the £125 cash in your own barbecue and do it yourself, or use the £20 Uber Eats voucher for a timely food delivery, this could be a great way to help celebrate with your nearest and dearest.’
How does it compare?
Figures from the Current Account Switch Service show more than 7million people have now switched their bank account since 2013.
There are often benefits and incentives to be reaped from switching as banks compete for current account customers, although this was temporarily halted during lockdown.
First Direct and Halifax are also currently incentivising new customers to switch via cash offers – joiners receive £100 cash after joining.
For those looking for the best interest rates, Nationwide are offering 2 per cent interest on up to £1,500, albeit for the first year only – afterwards it drops to 0.25 per cent.
Lloyds is also offering competitive rates with 0.6 per cent on up to £4,000 and 1.5 per cent between £4,000 and £5,000.
Whilst many might also be tempted by Virgin Money’s offer of 2 per cent monthly interest on up to £1,000 to go alongside 12 bottles of wine, said to be worth £138.
Virgin Money are offering current account switchers 12 bottles of wine for joining
Like with Virgin, many current account providers offer additional little perks and lifestyle benefits which might make them more appealing to some switchers.
For example, Club Lloyds and Club Lloyds Platinum accounts allow customers each year to choose from either six cinema tickets, an annual digital Gourmet Society membership, an annual magazine subscription or 12 digital movie rentals.
‘Most current accounts offer limited perks, usually to attract new customers, such as free mobile phone insurance, cashback, vouchers or simply a better customer experience,’ said James Padmore, head of money at Compare the Market.
‘Some providers have pulled offers or cashback deals over the past few months, so the new HSBC switching offer is likely to entice new customers to switch.
‘Our advice is to shop around online to see what deals are on offer compared to what you have with your current provider, and whether it could benefit you to switch.
‘With more people managing their finances through their mobile phone, it’s also important to do your research and make sure that the provider’s app works for you.’
THIS IS MONEY’S FIVE OF THE BEST CURRENT ACCOUNTS
Santander’s 123 Lite Account will pay up to 3% cashback on household bills. There is a £1 monthly fee and you must log in to mobile or online banking regularly, deposit £500 per month and hold two direct debits to qualify.
Virgin Money’s current account offers 15 bottles of wine worth £180 when you switch and pays 2 per cent monthly interest on up to £1,000. To get the bonus, £1,000 must be paid into a linked easy-access account and 2 direct debits transferred over.
Club Lloyds’s Current Account offers benefits such as cinema tickets, magazine subscriptions and dining cards to current account holders. There is no cost if you pay £1,500 each month, otherwise a £3 fee applies. Must hold two direct debits to earn monthly credit interest.
Metro Bank will give newcomers referred by existing customers £50 to open a current account. Existing customers can refer up to five friends for a total of £250. Customers must switch through CASS, deposit £500 in each of the first two months and make 10 debit card purchases over that time.
Nationwide’s FlexDirect account comes with 2% interest on up to £1,500 – the highest interest rate on any current account – if you pay in at least £1,000 each month, plus a fee-free overdraft. Both perks last for a year.
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