First Direct relaunches £175 cash carrot for switching current account

First Direct has relaunched its £175 checking account switching bonus.

As of today, new customers who convert their current account to a First Direct via the Payment Account Switching Service will receive the money carrot, which will be paid out within one month.

To receive the bonus, switching players must switch accounts by April 22, although these may be withdrawn earlier depending on demand.

Customers must set up at least two direct debits or standing orders within 30 days of account opening

They must also deposit a minimum of £1,000 into the account within 30 days of opening and logging into the app.

First Direct last had a switching offer in September 2023. Customers who received a switching bonus at that time are not eligible for this.

The offer only applies to new First Direct customers who have not yet owned a First Direct product or opened an HSBC current account on or after 1 January 2018.

In addition to the bonus, the account comes with a £250 interest-free overdraft, free spending abroad and a 7 percent fixed savings account.

How does it compare to other transfer deals?

First Direct’s switching bonus is the latest in a series of switching deals launched in recent weeks.

NatWest is offering the biggest switching bonus of £200. Customers must switch their current account to a NatWest Reward or Select current account to get the money – the former has a monthly fee of £2, while the Select current account is free.

Customers must use the official current account switching service, deposit £1,250 into the account and log into the mobile app within 60 days of switching.

The money is promised within seven days of meeting these requirements, making it one of the fastest switching deals after Club Lloyds and the one that offers the most money.

Santander launched a £185 switching bonus last week. The deal is open to new and existing customers who open a Santander current account through the Current Account Switch Service. This deal has a few more hoops to jump through than the NatWest or First Direct deals.

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Customers must complete the entire switching process within 60 days, including closing their old account.

They must also pay a minimum of £1,500 within 60 days of requesting the transfer process. This does not have to be paid in one go.

Customers must also set up two active direct debits within 60 days.

Direct debits cannot be used to fund Santander, Cahoot or Cater Allen savings accounts. You must continue to have an eligible Santander checking account on the day the payment is made.

Once these requirements are met, customers will receive the funds within 90 days.

Club Lloyds has a £175 switching bonus for customers who switch to a Club Lloyds current account.

The switch must be completed through the current account switch service, with the applications available in a branch, online or by telephone.

This process can take up to seven days to complete, with the money arriving three days later, making this the fastest transfer deal.

There is a monthly fee of £3 to maintain a Club Lloyds account – or no charge if £2,000 or more is paid into the account each month. This deal ends in two days.