Potential new customers have until 15 July to open the account, which also offers a range of perks including discounts and benefits, plus access to a 7% interest Regular Saver account.
The current account also comes with fee-free overseas transactions and ATM withdrawals, a £250 interest-free overdraft and customer service available 24 hours a day 7 days a week.
To be eligible for the £200 incentive, customers must go through the full Current Account Switch Service (CASS) process to transfer their everyday banking. This must include at least two direct debits or standing orders.
They must also deposit a minimum of £1,000 into the account, register and log into the provider’s digital banking and use their debit card at least five times. All this must be done within 45 days.
In addition, they cannot be existing customers of first direct or HSBC.
Colin Harrison, head of banking & propositions at first direct, said: “We are really pleased to be increasing our long-standing switching incentive to £200 for a limited time, giving our customers even more back as a thank you for choosing to bank with us.
“This is just one of many rewards we offer customers, as well as a fee-free overdraft and transactions abroad, and a range of gifts and perks each month through our loyalty programme.
What to consider before switching current accounts
Whilst £200 will be a warmly-welcomed addition to anyone’s bank balance, finance expert Rachel Springall of Moneyfactscompare.co.uk warns those considering a switch to make sure the account suits them as a whole before diving into the changeover.
“A free cash offer can be a huge boost for consumers, but it can be hard to find a current account that can suit multiple needs, so some may just want a simple transparent option,” she said.
“It’s great to see first direct improve its free switching cash offer, to £200, as its 1st Account is a great fee-free option with a competitive interest-free overdraft of £250 and an attractive tied regular savings account which pays 7%. In addition, there are no first direct debit card fees when spending abroad, so holidaymakers can avoid any nasty surprises compared to a typical bank account.
“It is worth pointing out that current account switching offers do not sit on the shelf for too long, they can come and go throughout the year, and some can be pulled with little notice.
“However, consumers must not feel rushed to switch, they need to carefully compare all the perks that come with the account against its rivals.”
Anyone with an existing account with benefits should use this as an opportunity to check how many of their perks they are using for their money.
And Springall advised comparing the first direct account to others on the market including NatWest and Barclays Bank.
“The NatWest Rewards account boasts a scheme for customers to earn monthly rewards,” she said.
“On top of this, those who switch to NatWest will also gain access to a 12-month fixed bonus rate when they open a Digital Regular Saver account.
“Switching current accounts is quick and easy to do, and the Current Account Switch Service (CASS) moves over any balance and redirects both standing orders and direct debits to a new account.”
Here are Rachel Springall’s recommendations or accounts which offer incentives to switchers:
- first direct – 1st Account – £200
- NatWest and RBS – Reward and Select Account – £200
- Barclays Bank – Bank Account – £200
- Santander – Edge range and Everyday Current Account – £180