HSBC vs Nationwide £200 switching bonus – how do the accounts compare?

HSBC’s latest switching offer matches Nationwide’s £200 deal and makes both banks the most attractive on the market if you’re looking to make some cash by switching your bank account.

If you’re already thinking about changing your bank account, now is a good time to give it a go with two big-name high street banks offering you £200 to switch. But which bank account switching deal is right for you?

Switching bank accounts is straightforward, the Current Account Switch Service takes care of it all for you – it only takes seven days and your balance, direct debits and standing orders follow you to your new account. So you shouldn’t miss a bill or payment.

But to qualify for a switching bonus you’ll usually have to tick a few boxes, like closing your old account, setting up a certain number of direct debits and having a minimum amount of money in your account.

We’ve taken a closer look at both offers to see how they compare.

HSBC vs Nationwide £200 switching bonus – how do the accounts compare?

HSBC’S £200 switching offer

Those interested will need to apply for a HSBC Advance account (or if you're lucky enough to earn more than £75,000 a HSBC Premier account)using the Current Account Switch Service and, unlike typical switching offers, there's no minimum monthly pay-in to keep the account, though you will need to deposit £1,500 once to get the bonus.

HSBC is offering £200 to those who open either its Advance or Premier accounts, using the Current Account Switch Service.

In order to qualify, you will need to start your switch within 30 days of the account opening, and then pay at least £1,500 into the account within 60 days. You will also need to switch at least two direct debits or standing orders. 

The Advance account is a free bank account and comes with an optional arranged overdraft of up to £1,000. The Premier account is also free but comes with more impressive features, such as free worldwide travel insurance and the first £500 of your overdraft being fee-free. In addition, you qualify for better rates on mortgages and ISAs with HSBC.

The switching offer is only available to new HSBC customers. In fact, to be eligible you cannot have had an HSBC account or have opened a First Direct current account since 1 January 2019. Once all eligibility criteria have been met, you’ll receive the £200 within 20 days.

Key HSBC account info at a glance

*Source: CMA banking survey. August 2022

How to apply

• Apply for a HSBC Advance account
• Apply for a HSBC Premier account

Nationwide’s £200 switching offer

Nationwide's £200 offer is open to both new members and existing Nationwide account holders who have another bank account elsewhere that they can switch away from.

Switchers must set up a minimum of two active direct debits.

The switching bonus is on offer on three Nationwide accounts: the FlexAccount, the FlexDirect and the FlexPlus.

The FlexAccount is a pretty basic free account, while the FlexDirect includes an interest-free overdraft and 5% interest on balances of up to £1,500. It’s also free. Finally, the FlexPlus includes worldwide travel insurance, mobile phone insurance and breakdown cover, as well as no fees for transactions abroad. It will set you back £13 a month.

With Nationwide, you will need to switch using the Current Account Switch Service, and the bonus will then be paid within 10 days.

But, you won't be eligible if you’ve switched from one Nationwide account to another, or if you’ve benefited under any previous current account online switch offer since 18 August 2021.

Key Nationwide account info at a glance

Source: CMA banking survey. August 2022

How to apply

• Apply for Nationwide FlexAccount, the FlexDirect and the FlexPlus.

The verdict

Both switching offers are well worth considering if you’re looking for a new current account. The ability to make £200 just by moving your bank account is compelling at the best of times, but even more enticing with rocketing inflation. Ultimately the best option for you will depend on your circumstances and your existing bank account. 

HSBC’s offer is more limited, in that you cannot have held an HSBC account or First Direct account for the last few years, which could rule you out. By contrast, Nationwide’s offer is open to existing customers as well as those new to the building society.

If your priority is earning a return on the money you keep in your bank account, then Nationwide’s account will be a better bet since you earn a market-leading rate of 5% on the first £1,500 you keep within the account.

That said, if you have a bigger pot of savings then being an HSBC current account holder comes with its own perks. That’s because you’ll then qualify for its Online Bonus Saver account, which pays 3% on balances of up to £10,000.

The best easy-access savings account currently available pays 2.75%, though you can save substantially more at up to £1million.

If you have a few overseas trips planned for the next few months the HSBC Premier account will look particularly attractive since it comes with free worldwide travel insurance, potentially saving you some cash on your travels. But you'll need an annual salary of more than £75,000 to apply

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