HSBC switch bonus query on direct debits

greensalad

Hi everyone,

To cut a long story short I have repaid an overdraft which now means my First Direct account is no longer the best option for me to keep hold of (free £250 OD). I want to boost my income a little and have decided to look into utilising switch deals to assist this.

I actually do most of my banking through Monzo but I'm also an avid YNAB user so I have no real qualms about moving bills around and if it means I can make a few hundred quid it is worth it to me.

I've seen that HSBC offer the best rate. I am able to meet the £1750 monthly pay-in.

My query is: it says that you need to have two DDs or SAs to qualify for the switch bonus. I want to ask if these two need to be switched or can they be set up fresh?

My First Direct account currently has one DD with HMRC set up, so that would be one. But the other bill related DDs I have are on my Monzo account. I have no problem moving them over to this new HSBC account but I wanted to know if that would qualify me for the bonus as I am just not sure if it's asking for 2 DDs to be switched or simply 2 DDs per month to exit the account.

As a separate query, is there a limit on how long the £1750 needs to stay in the account to qualify as being paid in, or is it literally just the inward flow that matters? I could easily pop it in, let the DDs go out then remove the additional funds back to Monzo where the majority of my banking happens. No issues with that but I just wonder if that qualifies.

Willing2Learn

I haven't double-checked the t&cs for you, as you need to do that yourself. However, when I switched, for the incentive, a few months ago, I set up two Standing Orders (in the donor account) to myself to satisfy the switch terms.

greensalad

Thanks, I'm currently reading through the T&Cs but it does't make it clear if they need to be part of the switch or can just be added.

In the end I've switched a Monzo bill to First Direct today, so hopefully that'll get picked up and switched.

N1ckS

Not sure whether they need to be switched but they paid the incentive to me before either the DD's switched over had been debited.

Willing2Learn

The t&cs are pretty clear.

... instruct us to start a full switch of a current account, including at least two Direct Debits or Standing Orders, to your Eligible Account using the Current Account Switch Service*2 (CASS) to start within 30 days of the date of your Eligible Account being opened.

https://www.hsbc.co.uk/content/dam/hsbc/gb/pdf/advance-175-switching-offer.pdf

greensalad wrote: »

As a separate query, is there a limit on how long the £1750 needs to stay in the account to qualify as being paid in, or is it literally just the inward flow that matters? I could easily pop it in, let the DDs go out then remove the additional funds back to Monzo where the majority of my banking happens. No issues with that but I just wonder if that qualifies.

Just noticed the above in your opening post. I just cycle the monthly deposit in and then straight out again, with a minute between each transaction. It only needs to be in the account for a nanosecond.

greensalad

Yes so the T&Cs state that it has to be switched e.g you can't open up a standing order once the account is opened and have that as one of your eligible payments. However you yourself seem to say that you set up two SA's to satisfy the switch terms. Do you mean you set these up on the previous account, so that they would be moved over during the CASS or that you set them up on the new account?

Willing2Learn

I set up the SOs in my donor account, so that they were included in the CASS switch.

Katiehound

Willing2Learn wrote: »

I set up the SOs in my donor account, so that they were included in the CASS switch.

SOs are not the same thing as DDs.
You control the SO yourself.
A DD is collected by a.n.other company on your authority generally on a regular basis eg monthly, annually.

Usually the small print to qualify for reward etc requires a set number of DDs. Very rarely it allows SOs as a qualification.

greensalad

Katiehound wrote: »

SOs are not the same thing as DDs.
You control the SO yourself.
A DD is collected by a.n.other company on your authority generally on a regular basis eg monthly, annually.

Usually the small print to qualify for reward etc requires a set number of DDs. Very rarely it allows SOs as a qualification.

I know the difference between a DD and an SO thanks.

The small print in this very rare situation allows SOs.

Katiehound

greensalad wrote: »

The small print in this very rare situation allows SOs.

Lucky bunny!
Most of us have been scratting around trying to find /create DDs to take advantage of the perks. However, perks are shrinking!

quirkydeptless

My switch from Tesco to HSBC completed Yesterday. Donor Tesco account had 2 SO and 1 DD. Should quality for bonus, but I'll have to wait to find out. I will drop these when the switch bonus has arrived as there's no 'switch and stay' bonus.

Had to visit branch with ID to do the switch, but staff very helpful and got me set up with online and mobile banking, with a digital secure key, and checked I was able to access both whilst there.

Recipient HSBC account set up to have £2000 payed in, and set up with 3 SO which I set up to transfer out £1750 in two chunks and £250 into the 5% Regular saver.