Halifax has brought back its £125 cash sign up bonus for current account switchers while launching a tempting £750 mortgage cashback offer.
The current account sweetener comes hot on the heels of a similar move from First Direct, which announced its own £125 incentive earlier this week as banks continue to compete for switchers’ attention.
Halifax’s popular Reward Account already pays £3 per month to customers, meaning potential first-year earnings of £161.
Halifax rewards: Current account switchers earn £125 and mortgage customers get £750
Halifax previously offered new banking customers moving to its Reward or Ultimate Reward Current Account (read more about these accounts below) a £75 cash payout.
Following the rest of the pack, it has now raised the amount switchers get to £125, but for a short time only – the offer runs until November 13.
To be eligible for the cash you must use the Current Account Switch Service to transfer and close your old account.
You will also get the cash if you are an existing customer but complete a switch from another provider to your account.
Halifax is offering a £750 cash bonus to new mortgages and remortgage customers. Cash will be paid on completion through your conveyancer.
How do the Halifax current accounts measure up?
The bank’s flagship free Reward Current Account pays £3 per month into your account as long as you deposit at least £750 per month and maintain two direct debits from the account.
The Ultimate Reward account offers features in This is Money’s round up of the top packaged bank accounts.
It offers a range of insurance perks, including worldwide family travel insurance up until the age of 71, mobile insurance, AA breakdown and home emergency cover at a cost of £15 per month.
There are a few banks paying more to switchers though if you are after a balance boost.
HSBC will pay £150 to switch accounts to its Advance Account, and £50 extra if you stay for a year until November 26.
It requires a £1,750 monthly deposit but you get a free overdraft for the first six months and a range of exclusive products, including access to a five per cent regular saver.
M&S Bank’s current account offers £125 upfront on an M&S gift card with an extra £5 per month added for a year as long as a minimum of £1,000 is paid into your current account and two direct debits remain active. It offers loyalty points for spending.
Below we have put together a table with the rest of the top current account cashback offers on the market.
|HSBC Advance||Free overdraft for the first 6 months, £150 to switch and an extra £50 if you stay for a year||£1,750 monthly minimum deposit. Switch using CASS with at least two direct debits|
|First Direct 1st Account||£125 (until December 11) for joining via MoneySupermarket and £250 interest-free overdraft||Pay in £1,000 a month or maintain a £1,000 balance|
|Halifax Reward||£125 for joining via switch service and a £3 monthly bonus||Pay in £750 a month, stay in credit and have two active direct debits|
|M&S Bank Current Account||£125 gift card for joining via switch service, plus collect an extra £5 a month for the first year in vouchers. Loyalty points for spending on debit card in store and £100 interest-free overdraft||No fee or rules|
|Cooperative Bank with Everyday Rewards||£125 to join, £25 charity reward and up to £5.50 in monthly rewards including 5p (up to £1.50) each time you use your debit card||Switch accounts using the Current Account Switch Service and maintain four direct debits, pay in £800 a month, stay in credit and receive paperless statements|
|Santander 123 Lite||Up to 3 per cent cashback on your household bills||£1 a month fee, pay in £500 a month and have two active direct debits|
|TSB Classic Plus||3 per cent on up to £1,500 plus up to £10 cashback each month until June 2018||Pay in £500 a month. You must maintain two direct debits, register for internet banking, paperless statements and paperless correspondence|
Alternatively, you can read more about our top picks in This is Money’s regularly updated guide to Five of the best current accounts here.
Or if you would prefer an interest-paying current account we have also reviewed all of the options and ranked our favourites in our guide to the 5 per cent savings trick.
Is it worth choosing a cashback mortgage deal?
With a series of legal, valuation and product fees, cashback on your mortgage can often be useful to help cover the costs of moving or setting up your new home.
But you should always prioritise the rate first when choosing the right product for you and weigh up the cashback with any product fees.
There are hundreds, if not thousands, of options out there, so, as well as doing your own research, you may want to speak to a good mortgage broker for advice.
Our mortgage calculator and best buys table can show you a full list of the best deals that suit your circumstances. Check to see if you can find a cheaper mortgage here.
You can use our true cost mortgage calculator to compare how different deals stack up.
So what about Halifax’s offer?
The cash won’t land in your account automatically – Halifax pays the cash to your conveyancer who passes it on to you.
The bank also offers free basic legal fees and standard valuation costs for re-mortgaging customers.
According to data from Moneyfacts.co.uk, there are 32 lenders offering cashback on
fixed mortgages and they offer between £100 and £1,000 – putting Halifax at the top end.
Rachel Springall of Moneyfacts says: ‘Borrowers would be wise to check out any deal that offers cashback but be mindful that they may not be the best overall package based on true cost. The interest rate, any associated fees and incentives should all be weighed up to find the most competitive deal.
‘Cashback can be handy for many things, such as removal costs, or using the cash to appoint a solicitor. Borrowers just need to be careful not to be blind sighted by the cash perk when choosing a mortgage.’
THIS IS MONEY’S FIVE OF THE BEST CURRENT ACCOUNTS