HSBC offers the largest cash incentive, but is it worth switching for?

10th June 2016

Current accounts are one of the most competitive areas of the market at the moment and providers continue to look at ways to tempt you in.

High Interest Current Accounts continue to be the go to accounts for many savers, with rates far in excess of those available from traditional savings accounts.

HSBC is the latest in a long line to offer a cash incentive, offering up to £200; £150 when you switch your current account and an additional £50 after 12 months, subject to terms and conditions.

They join the likes of Nationwide, where current account holders can recommend a friend or family member, and if they switch, they will then share £200.

And Halifax where you could receive up to £185 in the first 12 months, with a £125 switching offer and a £5 monthly reward when you open its Reward Current Account.

But whilst cash incentives can be good and certainly HSBCs is one of the largest on the market at the moment, you need to do the maths, as not only do you have to switch your account to get the cash, for HSBC at least, it doesn't pay any interest on balances held in its accounts.

For example, Santander - 123 Current Account pays 3.00% on £3,000 up to £20,000, that is £600 interest you could earn after a year, if you deposit the full £20,000. Although there are things to consider such as the monthly fee and the cashback facility, the point is not all cash incentives work out the best value, for savers at least.

The good news is that many current accounts allow you to take advantage of the high returns on offer without switching your main account. Some of these include Nationwide - FlexDirect Current Account pays 5.00% on £1 up to £2,500 and TSB Bank - Classic Plus Account paying 5.00% on £1 up to £2,000. Both offer some of the very best rates on the market for savers, albeit on smaller balances but why not open a few accounts to maximise your interest!

View all of our High Interest Current Account best buys or call one of our savings experts on 0800 321 3581 to see how you can improve the interest your earning and keep your savings safe.

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