Universal Credit : Does a £205 bonus for switching bank accounts count as extra savings/income ?

I am currently receiving universal credit and am considering applying for an offer from HSBC to open a new account and thus receive £125 bonus ( which could potentially rise to £205) within 60 days .

My question is :
1)  Do I have to declare this bonus with the universal credit people if my application is accepted by HSBC and I receive the bonus ? 

2)Is the bonus regarded as extra savings and/or income ? 

3) If the bonus is indeed classified as income , how much will be taken off my benefit per month? My current savings stand at £7400.

Thanks in advance for any help provided .
 

Comments

  • poppy12345
    poppy12345 Posts: 17,750
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    It’s treated as capital and not income. If your total capital/savings is less than £6,000 you do not need to report it. 
  • mikey888 said:
    I am currently receiving universal credit and am considering applying for an offer from HSBC to open a new account and thus receive £125 bonus ( which could potentially rise to £205) within 60 days .


    3) If the bonus is indeed classified as income , how much will be taken off my benefit per month? My current savings stand at £7400.

    It will be savings.  So £7400 + 205 takes you to £7605, over a £250 threshold so yes you will need to report the change to your savings once you actually get the bonus (assuming you've not used any of the £7400).

    You need be report changes to savings over £6,000 by the end of each assessment period where it's gone above or below a £250 threshold (e.g. 6250, 6500, 6750, 7000, etc.)
  • GingerTim
    GingerTim Posts: 1,921
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    edited 6 November 2023 at 7:28PM
    It's worth having a look at the thread on this offer in the banking forum: https://forums.moneysavingexpert.com/discussion/6481031/hdbc-advance-gutted/p1

    Tl;dr - HSBC are being very selective and it's not quite as easy to qualify for the bonus as ML indicated.
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