Get paid more to switch banks: Halifax boosts incentive to £125 for new current account customers as battle heats up
New customers switching to Halifax will earn £125 from next Tuesday, as potential customers are offered more free money to sign up to current accounts.
The High Street giant is boosting its switching incentive from £100 to £125 until 22 March, as the battle between banks to attract current account customers shows no signs of letting up.
Customers can also earn a further £60 in the first year as the bank pays a monthly £5 reward to those who meet a list of criteria.
Switch: New customers switching their current account to the bank will get paid £125.
To qualify customers must pay in £750 each month, the account must stay in credit and at least two direct debits should be set up.
The £125 is paid within three workings days of a successful transfer.
Halifax isn't the only bank to offer perks to new customers in the form of cash.
Its sweetener goes up against a potential payment of £150 to move to First Direct, £120 to move to HSBC and a £100 giftcard to move to M&S Bank, among other offers.
Darren Tong, head of Halifax current accounts, said: ‘While some banks are charging customers monthly current account fees, or making them wait months to get their promised reward, most eligible customers who switch to Halifax get their £125 switching bonus before the switch completes.
‘In addition, they can get £5 a month with our Reward Account.’
Halifax said that over 380,000 customers have switched to the bank since the launch of the Current Account Switching Service launched in September 2014.
The service offered by all banks and building societies claims to give ‘hassle-free’ switching within seven days. This includes changing all direct debits and standing orders and arranging for payments from the old account to be automatically redirected to the new one.
Andrew Hagger, of financial researcher Moneycomms, said: 'On the face of it the new offering from Halifax looks like a good deal as its £125 cash and up to £60 a year in incentives.
'The thing to remember is that if you go overdrawn, even just for one day, you don’t get that £5 per month and there’s an overdraft fee which starts at £1 per day too.
'Don’t just sign up to a bank account for an incentive but do your homework and look for an account that suits you.'
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