Looking to switch current account? Get £200 with HSBC
HSBC has revived its £200 sign-up offer for people who switch to its Advance or Premier current accounts, though you’ll need substantial savings or a £21,000 annual income (post tax) to qualify.
The offer, which launched this week, is available to anyone joining the bank via the Current Account Switching Service, providing they set up at least two direct debits, you don’t have an HSBC current account and haven’t had one in the last year (you can have had a First Direct or M&S current account, which are both part of the HSBC Group), and meet the account’s income eligibility criteria.
This requires a deposit of at least £1,750 each month for the HSBC Advance account, or a six-figure annual income with either an HSBC mortgage, an investment, life insurance, or protection product for the more exclusive Premier service. You can also get the Premier service if you have savings of at least £50,000 with HSBC.
People who qualify for the bonus will get £150 within a month of joining, plus a further £50 if they still hold the account after a year.
New HSBC customers who join via the switching service will also receive an interest-free overdraft for six months.
The terms and conditions stipulate that HSBC reserves the right to pull this deal at any time, which it has done so in the past.
HSBC’s deal is currently the biggest cash bung you’ll get for joining a bank or building society using the current account switching service.
The next largest switching incentive is £150 from the Co-op, plus through its Everyday Rewards Scheme it’s possible to get an extra £5.50 a month.
If you’re an M&S shopper, you can get get £100 when you join and an extra £10 a month for a year, providing you deposit at least £1,000 a month. However, M&S Bank pays its bonus in M&S vouchers, rather than cash.
If HSBC’s £1,750 monthly deposit is a sticking point, do bear in mind that this doesn’t need to come from a single payment.
Transfers from other HSBC accounts won’t count towards the £1,750 monthly goal, though additional cash deposits do.
An overdraft is an agreement with your bank that authorises you to withdraw more funds from your account than you have deposited in it. Many banks charge for this privilege either as a fixed fee or charge interest on the money overdrawn at a special high rate. Some banks charge a fee and interest. And other banks offer a free overdraft but impose very high charges for exceeding the agreed limit of your overdraft.
Generally thought of as being interchangeable with life assurance, but isn’t. Life insurance insures you for a specific period of time, at a premium fixed by your age, health and the amount the life is insured for. If you die while the policy is in force, the insurance company pays the claim. However, if you survive to the end of the term or cease paying the premiums, the policy is finished and has no remaining value whatsoever as it only has any value if you have a claim. For this reason, life insurance is much cheaper than life assurance (also called whole of life).
An account opened with a clearing bank (few building societies offer current accounts) that provides the ability to draw cash (usually via a debit card) or cheques from the account. Some pay fairly minimal rates of interest if the account is in credit. Most current accounts insist your monthly income (salary or pension) is paid directly in each month and they offer a number of optional services – such as overdrafts and charge cards – which are negotiable but will incur fees.
This is a mutual organisation owned by its members and not by shareholders. These societies offer a range of financial services but have historically concentrated on taking deposits from savers and lending the money to borrowers as mortgages, hence the name. In the mid-1990s many societies “demutualised” and became banks. One academic study (Heffernan, 2003) found demutualised societies’ pricing on deposits and mortgages was more favourable to shareholders than to customers, with the remaining mutual building societies offering consistently better rates. In 1900, there were 2,286 building societies in the UK; in 2011, there are just 51.