First Direct relaunches free £175 switch offer - what you need to know

First Direct has reintroduced its £175 cash incentive for switching current accounts

First Direct has reintroduced its £175 cash incentive for switching current accounts, a move that comes at a time when similar offers are scarce.

The bank reported a significant uptake of the offer when it was initially launched for four weeks in late March. To qualify for the £175, customers must meet certain criteria, including transferring a balance of £1,000 into the account, switching at least two regular payments, and using their debit card a minimum of five times within 30 days of opening the account.

The full Current Account Switch Service (CASS) process must be completed to receive the £175. First Direct stated that customers can expect to receive the bonus by the 20th of the month following the fulfilment of the criteria.

The bank has not specified an end date for the £175 switching incentive. Chris Pitt, chief executive of First Direct, said that the £175 offer “will only be around for a limited time only”.

To be eligible for the incentive, customers must not have previously held a First Direct product or opened an HSBC current account on or after 1 January 2018. This latest offer from First Direct could potentially lead to more new switching offers being introduced in the current account market.

Virgin Money recently introduced a tempting offer for those switching to their M Account, M Plus Account and Club M Account. Unfurled last week, the new current account offer will deliver 10% gross fixed bonus interest on balances up to £1,000 from July 1 2024 to June 30 2025.

Moneyfactscompare.co.uk highlighted how banks such as NatWest, Lloyds Bank and Santander all ceased cash switch offers, despite previously handing out up to £200. . Finance expert Rachel Springall from Moneyfactscompare.co.uk said: “After a short absence, First Direct has reintroduced its £175 switching cash offer, which may entice consumers looking for an upfront sweetener.”

“The fuss-free 1st Account may be suitable for those who use their overdraft from time to time, thanks to its £250 interest-free buffer. Not only this, but those looking to kick-start the savings habit will have access to its regular savings account which pays a competitive 7%.”