HSBC is one of the first banks which is back with a switching incentive, following the fallout from the pandemic. With interest rates tumbling due to the Bank of England’s base rate decision back in March 2020, the desire to save is likely to be at low levels. This is because many providers aren’t offering the kind of return on funds saved that Britons are often looking for.
There are, however, account payment rules which are worth bearing in mind before savers take the plunge to switch.
Individuals will need to set up at least two standing order or Direct Debits for this account.
They will also need to pay at least £1,750 into the account monthly, or a minimum of £10,500 over a six month period.
Savers must also qualify for a minimum £1,000 arranged overdraft, but they do not have to have this facility if they do not want it.
The account can be opened by individuals who are aged 18 or older, and who live in either the UK or the EU.
However, for individuals who wish to benefit from this deal, fast action will be needed.
This is because HSBC has confirmed the deal will end on May 9, 2021, giving just a short time to benefit.
To secure this offer, savers must use the Current Account Switch Service within 20 days of opening the new account.
HSBC has, thankfully, explained the process to provide further insight to savers.
Its website reads: “Once your new account is open, you can choose any date to be your switch date, as long as it is in at least seven working days’ time.
“Talk to our staff about switching to HSBC on a date that suits you.
“You can either do this in one of our branches, or call us providing you have a UK based current account.”
HSBC will let a person’s old bank know they are moving, and ask for an old account to be closed once transfers are made.
An old bank will also send HSBC the details of regular payments such as Direct Debits and standing orders, which will then be set up on the new account.
All payments accidentally made to an old account will be automatically re-routed to ensure they reach the bank account of choice.