Halifax slashes current account switching bonus, should you still move?

1 March 2017

Halifax has reduced the cash incentive it offers to new customers switching to its current accounts.

The bank, which had previously paid £100 to switchers, will now offer £75 in cash when you move your account to Halifax using the Current Account Switching Service.

The bonus is paid for people switching to its Reward Current Account or Ultimate Reward Account.

Despite banks offering a range of incentives to switch accounts, many people have failed to do so since the seven day switching service was introduced in September 2013.

One million accounts were switched during 2016 - lower than the previous year. There are around 70 million active current accounts in the UK.

Research by price comparison website Compare the Market found 62% of people have never switched their bank account. Even those who had switched in the past failed to move their money around often - 59% of people who changed their bank account once have never moved again.

Where else can you switch?

The Halifax switching deal remains competitive but the best offer on the market today, in terms of switching bonuses (not interest rates), comes from HSBC. It is offering new customers who switch to its Advance or Premier Account a £150 cash bonus. If your account is still open after a year the bank will pay an extra £50 into your account, bringing the total bonus up to £200.

Elsewhere, you can earn £110 by moving to the Co-operative Bank Current Account while the First Direct 1st Account offers £100 to switch, plus an extra £100 if you’re dissatisfied and leave within six months.

Shoppers at Marks and Spencer may also like to take advantage of its current account switching bonus. It doesn’t pay out cash but instead offers a £50 M&S gift voucher to switch, plus a £5 voucher every month for two years if you stay with the bank.

For the full range of current accounts, including interest paying accounts that may better suit your needs, see Moneywise’s best buy guide.

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