Major bank axes £175 switching offer and you don't have long left to claim

26 January 2024 , 13:57

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First Direct has pulled its £175 switching offer (Image: Getty Images/Westend61)

First Direct is axing its £175 switching offer and Brits only have hours left to claim the free cash.

HSBC's sister bank confirmed that it will be "pausing" its £175 switching offer today (January 26) following a review. Those wanting to cash in on the offer now only have until 11:59pm tonight to start the switching application process. First Direct's switching incentive has been around for the last year and a half having been launched in 2022.

The offer gives all new First Direct customers £175 when they switch from another bank to its First Direct current account. To get the free cash, you need to close and switch your current account using the Current Account Switch Service (CASS). This is a free service which will move your balance, direct debits, and salary over to the new bank within seven days.

With bank switching offers, you often need to jump through a few hoops to be eligible for the money. These often include having to deposit a certain amount of money into the account or having to log in to online or mobile banking. With First Direct, you must also pay at least £1,000 within three months of opening the account.

A First Direct spokesperson said: "Following a review, we are putting our £175 current account switching incentive on pause after 26th January. Any customers that have applied to switch their bank account to us by 11.59pm on that date will still get the switching offer within 28 days of meeting the eligibility criteria.”

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Alongside the current account, First Direct gives customers free overseas spending as well as a 7% regular saver and a 0% £250 overdraft. You should be aware that if you have opened an HSBC account since 2020, then you won't be eligible for the switching offer. Although customers may hold an HSBC current account and still qualify for the offer, as long as the current account was opened before January 1, 2020. If you switch, you should receive the funds within 28 days.

Banks offer switching incentives such as this to entice customers into moving their cash over. Recently, the pool of offers has dried up a tad and customers don't have a lot of options to choose from at the moment. TSB will be the only high street bank to offer a switching incentive after First Direct finishes today. TSB is currently offering £125 to those who switch to its Spend & Save or Spend & Save Plus account. You then can get a further £60 through its cashback offer on the first six months. The Co op bank recently pulled its £150 switching offer after four days due to high demand.

Ruby Flanagan