Relaunched: first direct’s £175 switching offer

This latest incentive is currently the sole switching offer on the market.

Retail bank, first direct, relaunched its current account switching offer, allowing new customers to earn £175 by moving to its 1st Account.

This account includes features such as no debit card fees when spending aboard and access to first direct’s Regular Saver account paying 7.00% AER which is fixed for 12 months.

“Adding to its appeal, customers can expect to receive a £250 interest-free buffer on its arranged overdraft, which some may find beneficial,” explained Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk.

“However, the account does not pay any credit interest, which should be considered,” Eastell continued.

How do I make the switch?

To be eligible for the £175 payment, first direct states customers must use the Current Account Switch Service (CASS) to switch to its 1st Account.

Once the account is open, you’ll then have 45 days to register for online banking and make at least five debit card payments, which can include third-party payment platforms.

Also within this timeframe, you’ll need to transfer a minimum of two direct debits or standing orders, as well as deposit at least £1,000 (either as a one-off payment or spread over the 45 days).

If you meet these criteria, you’ll receive the free cash incentive before the 20th of the following month.

Note that you won’t be able to claim this offer if you are already a customer with first direct. Moreover, you also won’t qualify if you previously held a first direct account or opened a current account with its sister bank, HSBC, on or after 1 January 2018.

Is it worth switching current accounts?

TSB removed its own switching offer earlier in the week, which had enabled customers to earn up to £190.

This now leaves first direct with the only switching incentive still on the market, after multiple providers pulled their own offers in recent months.

However, while free cash incentives can be enticing, there are many other reasons why you may want to consider switching current accounts, such as to face fewer fees, obtain cashback or receive more interest on credit balances.

With this in mind, it’s important for customers to consider all aspects of an account to decide whether it’s right for them.