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