UK consumers looking for a financial boost at the start of the new year could secure a welcome £250 simply by moving their current account. Two of Britain's major high street banks, HSBC and Lloyds Bank, are currently dangling a cash incentive to attract new customers.
The Current Switching Landscape
According to financial analysts at Money Saving Expert (MSE), the consumer website founded by Martin Lewis, the bank switching market has reignited after a typical December lull. The experts describe January as a "lean month for many", making the prospect of free cash particularly appealing. They advise that unless you are completely satisfied with your existing provider, it is worth considering getting paid to make a change.
The process is designed to be straightforward. To qualify for the bonus, you must use the official Current Account Switch Service, which takes around seven working days. This service automatically closes your old account and transfers all balances, Direct Debits, and standing orders. Any payments sent to your old account are forwarded to the new one. Applicants will also need to pass a standard credit check.
HSBC's Premier Account Offer
HSBC is offering a £250 switching bonus for its Premier account, but this deal is targeted at higher earners. To be eligible, you must have an annual income of at least £100,000. The account itself is fee-free and includes benefits such as free worldwide family travel insurance and access to a digital private GP service.
There is also a potential for an even larger windfall. Customers who transfer £100,000 or more in savings or investments and maintain that balance for three months can receive an additional £500, making a total potential gain of £750. This offer is available until February 23, 2026.
Lloyds Bank's Club Lloyds Deal
Lloyds Bank provides a more accessible £250 incentive for switching to a Club Lloyds account. While not restricted to high earners, this account requires a monthly deposit of at least £2,000 to avoid a £5 monthly fee. Switchers must also move a minimum of three Direct Debits, rather than the standard two required by most switching offers.
The account comes with several notable perks, which include an annual choice of a 12-month Disney+ subscription, six cinema tickets, or other lifestyle options. It also provides access to a linked regular saver account with a competitive 6.25% annual interest rate, allowing deposits of up to £400 per month. Additional benefits are a £100 interest-free overdraft buffer and a debit card offering favourable exchange rates for overseas spending. This offer closes earlier, on February 3, 2026.
Is Switching Right For You?
While the immediate cash incentive is attractive, financial experts urge consumers to look beyond the bonus. It is crucial to ensure the new account's ongoing fees, features, and customer service meet your long-term banking needs. The switching process is protected and largely hassle-free, but always check the full terms and conditions before applying. For the most up-to-date information on these and other offers, visiting the official MSE website is recommended.
