Halifax launches £175 bank account switching bonus

Halifax has raised the stakes in the bank account switch war by launching a £175 cash offer for new entrants.

From today, those who upgrade to Halifax’s Reward or Ultimate Reward current accounts will be eligible – although they should be aware that both charge customers a monthly fee.

Those who already have the Halifax No Fee Current Account can also benefit if they change their existing bank account with Halifax to a Reward or Ultimate Reward account.

However, they will need to have a secondary bank account with another provider that they can switch to, and they will not be eligible if they have used another Halifax switching offer since April 2020.

Cash distribution: Halifax is offering a new switch offer of £175 for customers switching from another bank to a reward checking account by April 3

Halifax says the offer will remain in place until April 3, with the £175 paid within three days of the switch being completed.

The change will be made using the current account change service, which will automatically move all direct debits to the new account.

The service also automatically transfers existing current account balance, standing orders and salary commitments, within seven days.

Is the Halifax Current Account Switch Offer a good deal?

Anyone considering the switch should know that Halifax’s Reward account charges £3 per month, while its Ultimate Reward account charges £17 per month.

With the Reward account, the £3 fee is waived if £1,500 or more is paid each month.

The £17 fee for the Ultimate Reward account can’t be escaped, but it does include worldwide multi-trip family travel insurance, family AA breakdown cover, mobile phone insurance and emergency cover. home emergency.

Existing customers can still benefit: Halifax customers are also eligible if they change an existing bank account with Halifax to a current Reward or Ultimate Reward account

In addition to the change bonus, Halifax Reward account customers can receive £5 cash each month or choose from a range of benefits including cinema tickets, magazine downloads and streaming movies.

However, to qualify, they will either have to spend £500 on their debit card each month or keep £5,000 in their account each day of the month.

Someone switching to the Reward account and playing by the rules could therefore end up with £175 for their membership and £60 in cashback after their first year. It’s £235 in total.

It is worth comparing the offer to other switching offers at the moment, as well as looking at the various advantages offered by other banks.

> Check This is Money’s best current account guide here

First Direct is offering switchers a £175 bonus when they deposit £1,000 within three months of account opening.

Last month, NatWest launched its highest ever bank account switching incentive, offering new and existing customers £200 in cash.

Anyone transferring their main account to NatWest’s Reward account or Select account will be eligible if they log into mobile banking and pay at least £1,250.

Best offer ever: Halifax rival NatWest recently launched a £200 bonus for those who switch

However, cash gifts should not be the main reason for the change. There are also other benefits to consider, such as interest earned or linked savings rates, overdraft limits, customer service, and free spending abroad.

Digital banks, for example, offer some of the best easy-to-access savings rates at a time when many leading banks are paying below-standard rates.

Kroo is paying 3.03% interest income while Chase and Monzo have both linked instant access savings accounts paying 3%.

Digital-only banks also almost always allow free transactions abroad, which many top-tier banks do not.

Many major banks charge transaction fees when using their debit cards abroad. For example, Lloyds and Barclays charge 2.99% while NatWest and HSBC charge 2.75%. They will also typically charge ATM withdrawal fees.

> Read This is Money’s review of the four best digital banks