Competition in the current account market is heating up, with HSBC UK launching its biggest switching offer since 2018.

The bank launched a new £200 current account switching offer on Monday to eligible customers looking to switch to an HSBC Advance or Premier Bank Account, using the Current Account Switch Service (Cass).

Several other providers also have cash offers to switch, which may particularly be useful at a time when people are struggling with rising bills.

Read more: Stockton mum documents 'holiday from hell' after falling seriously ill in Dominican Republic

Among the deals available, Nationwide Building Society is offering £200 to current account customers looking to make a switch, while First Direct is offering £175 and Lloyds Bank has a £150 switching offer.

In general, people will need to weigh up any perks that come with accounts as well as any fees and charges, to work out whether switching is a good option for them in the longer term.

Rachel Springall, a finance expert at Moneyfacts.co.uk, said: “It’s good to see more current account providers launch current account switcher incentives this time of year, and the £200 offer from HSBC is one of the more generous of those available – with Nationwide also offering £200 right now.

Read more: Teen and police officer seriously hurt in firework attack in Southwick, Sunderland

“As with any current account, its imperative consumers choose an account carefully, weighing up all the benefits and charges and not be swayed by the up-front cash alone.

“At this time of year, there may well be consumers out there who could do with a cash boost, and for them, £200 could be a big help amid the cost-of-living crisis.”

Tom Wolfenden, HSBC UK’s head of retail, said: “The increased cost-of-living is having an impact in many different ways.

“While we know that some people are reviewing their daily, weekly or monthly spend, including cancelling hundreds of thousands of unused or unwanted subscriptions, taking a wider, more holistic look at products or services that might provide overall and longer-term value could provide some important rewards or savings.”

The terms of HSBC’s switching offer mean that to qualify, people must apply for a HSBC Advance or Premier bank account on or after November 7 2022 while the offer is live and go on to open the account.

They must complete a full switch of their existing current account to HSBC using Cass, with at least two direct debits or standing orders and they must start the switch within 30 days of opening their new account.

Customers must deposit at least £1,500 by one or more deposits into the new account within 60 days of opening their new account.

The £200 will be paid within 20 days of the switching criteria being satisfied.

People will not qualify if they have held an HSBC UK current account since January 2019 or opened a First Direct current account since then.

Read next:

If you want to read more great stories, why not subscribe to The Northern Echo for as little as £1.25 a week. Click here.