HSBC is about to withdraw its market-leading 6% current account. If you hurry, you can still sign up.
The HSBC Bank account is a fabulous product. It pays 6% interest on balances up to £2,500! That's a far better rate than just about all the savings accounts on the market.
However, there are three catches. Firstly, the 6% interest rate is only available for the first year that you have the account. Once the year is up, the interest rate will fall to zero. Secondly, you have to pay at least £500 into your account every month.
And finally, this special offer is going to be withdrawn at the end of January. In order to secure the deal, you need to get your switching forms over to HSBC by 5pm on the 31st January. Existing HSBC customers also qualify for this deal as long as they haven’t filled out HSBC switching forms before.
So you need to act quickly, but it’s worth making the effort. After all, if you kept £2,500 in the account for the next 12 months, you’d earn £150! Nice.
The 6% offer is available on another two other HSBC current accounts. If you go with the HSBC Advance account, you’ll also get free worldwide travel insurance, roadside breakdown assistance and some life insurance cover. But you’ll also have to pay a £12.95 monthly fee.
With the Premier Account, you’ll get a raft of personal services including wealth management advice from an HSBC adviser and dedicated Relationship Manager. However, to qualify, you’ll need to meet one of the following criteria:
- Joint savings or investments of at least £50,000 with HSBC in the UK.
- An annual income of at least £100,000 paid into your HSBC Premier Account, as well as either: 1) a mortgage of at least £300,000 with HSBC or 2) a product taken out from the bank’s independent financial advice service, excluding mortgage-related insurance.
[SPOTLIGHT]The Premier Account isn’t for me because I don’t earn £100,000 a year and I don’t want to deposit a big chunk of my wealth with the bank. I also have no desire to open an account where I have to pay a monthly fee.
So the HSBC Bank account is the one that appeals to me most. That said, it’s not the only attractive current account on the market at the moment. True, no other current account pays as much as 6%, but there are three rival accounts that offer cash rewards when you switch unlike HSBC.
Cash reward
Let’s look at the three rivals.
We’ve written many times about the Santander Preferred Current Account. Make the switch and you’ll get 5% interest on balances up to £2,500 for the first year, and you’ll also get a £100 reward. If you already have a Santander mortgage, you could get a £200 reward, and if you have at least £10,000 in a Santander savings account, you could get £300!
However, Santander gets a lot of stick for poor customer service so you may prefer to go for the First Direct 1st Account which has won many plaudits for the way it looks after its account holders. You’ll get a £100 switching bonus with this account but no interest is paid on balances. But you will need to pay in £1,500 a month, or else pay a monthly fee.
Your other option is the Halifax Reward Account. So long as you pay in £1,000 each month, you’ll receive a tasty monthly reward of £5. That’s regardless of how much money is in your account. Even if you’ve got just £1 in your account at the end of the month, you’ll still get that £5.
What’s more, you can currently secure a £100 welcome bonus as soon as you apply for the account. Read Halifax Reward Account paying £100 cashback for more detail.
So there are several attractive current accounts on offer right now, but if your priority is to get the highest interest rate possible, HSBC is the one to go for. So get cracking and get your form into HSBC by Tuesday evening!