First Direct will pay free £175 to customers who have £1,000 in account

First Direct has relaunched its £175 cash-to-switch incentive on current accounts. The bank said it previously saw significant take-up of the incentive when it launched for four weeks in late March and to receive £175, customers need to meet certain eligibility criteria.

This includes 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. The bank has not given a date for when the £175 switching incentive will be withdrawn.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.

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The latest offer from First Direct could pave the way for more new switching offers to be launched in the current account market. 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%."

On its website, the bank says: "ou just need to be over 18, a UK resident and haven't been declared bankrupt or registered for an Individual Voluntary Agreement in the last six years (or be in the process of doing so). You also need to have a phone number and email address so we can get in touch with you.

"Go to our service quality page to find out how you can open an account and what information and documents you need to give us."