Santander, HSBC and RBS launch bank switch bonuses: here’s how to get them

Three banks have launched new bank switch bonus deals this week. So how can you get them? And which is best for you? Let’s explore.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

A person holding onto a fan of twenty pound notes

Image source: Getty Images.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Santander, HSBC and RBS have all joined the bank account switching bonanza. All three of these banks will now pay you a bank switch bonus if you move your current account to them.

These new offerings sit alongside existing Nationwide and Lloyds deals, giving you plenty of choices to access free cash. 

So how does a bank switch bonus offer work? And which account is best for you? Let’s explore the details.

[top_pitch]

How does a bank switch bonus work?

Banks love new customers. The more customers a bank has on its books, the easier it is for them to sell their financial products, such as mortgages, personal loans and packaged bank accounts. The trouble is that research shows many of us are reluctant to switch accounts.

To address this, a number of banks have begun offering a bank switch bonus to encourage customers to move their accounts.

That means it’s relatively easy for you to pocket free cash, as long as you follow the rules of any specific offer. Under the terms of a typical bank switch bonus, you have to:

  • Switch within a specific time frame, using the official switching service
  • Switch over a minimum number of direct debits
  • Make a minimum payment into the account

There can be other rules too, and some bank switch bonus offers have more stringent conditions than others. So let’s explore the terms of the new Santander, HSBC and RBS offers.

Santander: £130 bank switch bonus

Santander’s Everyday, 123 Lite and 123 accounts all pay a sweet £130 bank switch bonus.

Santander’s Everyday account has no monthly fee. The 123 Lite account costs £2 per month, but it pays up to 3% cashback on bills. This should more than cover the fee if you have average utility bills.

The standard Santander 123 account offers the same bank switch bonus, but it comes with a £4 monthly fee. However, it has little to show for the extra cost over its 123 Lite cousin.

To get the bonus on any of these accounts, you must use the official switching service, switch over (or set up) at least two direct debits, pay at least £1,000 into your account and log in to online banking at least once. The £130 bank switch bonus is added to your new account within 30 days of your switch.

[middle_pitch]

HSBC: £110 bank switch bonus, plus £30 Uber Eats voucher

If you haven’t had an HSBC or First Direct current account since January 2018, then you can grab a free £110 for switching to HSBC’s Advance account. You can also score a £30 Uber Eats voucher on top.

To get these freebies, you must switch over at least two direct debits or standing orders, and be able to pay in a minimum of £1,750 a month.

HSBC will pay you its bank switch bonus within 30 days once your switch has been completed. While it’s a very decent switching incentive, there’s isn’t much else to shout about with this account in terms of ongoing perks.

RBS: £100 bank switch bonus, plus an extra £50 in a year

If you switch to an RBS Select, Reward or Premier account by 18 November 2021, you can grab a £100 bank switch bonus. To get it, you must pay at least £1,500 into your account and log in to online banking by 30 December. Do this, and £100 will be paid into your new account by 28 January next year.

Plus, if you make 10 transactions each month between January and September 2022 (excluding interest, fees and charges), you’ll qualify for another £50 payment. You’ll receive this by 16 November 2022.

As the RBS bonus is available on three of its accounts, it’s worth looking at which is best for you.

The RBS Select account has no monthly fee, but it doesn’t have many benefits. In contrast, the RBS Reward account has a £2 monthly fee, but it’s possible to earn a £5 reward every month as long as you meet its listed criteria.

Meanwhile, the RBS Premier Reward Black account has a very hefty £31 monthly fee. In return, you get worldwide family travel insurance, car breakdown cover and access to airport lounges. You can earn up to £9 in monthly rewards too. While the account isn’t for everyone, it’s worth considering if you’ll use the included perks.

Ready to switch? For more information on the bank switching process, see our article on how to switch bank accounts.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »