First Direct bank offers £175 to switch current account - here are the eligibility rules

First Direct is offering £175 to people for switching current accounts, at a time when many similar offers have disappeared from the market.

The bank said it previously saw significant take-up of the incentive when it launched for four weeks in late March. To receive £175, customers need to meet certain eligibility criteria, including transferring a £1,000 balance into the account, switching at least two regular payments and using their debit card at least five times within 30 days of the account opening.

Switchers must go through the full Current Account Switch Service (Cass) process to transfer their everyday banking to receive the £175. Customers can expect to receive the bonus by the 20th of the following month of meeting the criteria, First Direct said.

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The bank has not given a date for when the £175 switching incentive will be withdrawn. Chris Pitt, chief executive of First Direct, said the £175 offer "will only be around for a limited time only".

To receive the incentive, customers must also not previously have held a First Direct product or opened an HSBC current account on or after January 1, 2018. The latest offer from First Direct could pave the way for more new switching offers to be launched in the current account market.

Last week, Virgin Money launched a new current account switching offer, giving switchers to Virgin Money's current accounts - the Virgin Money M Account, M Plus Account and Club M Account - a bonus interest rate of 10% gross fixed on current account balances up to £1,000 for a year from July 1 2024 to June 30 2025. Website Moneyfactscompare.co.uk recently said several other banks, including NatWest, Lloyds Bank and Santander, had ended offers of cash to switch. Some banks had been offering as much as £200.

Rachel Springall, a finance expert at 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%."