Halifax slashes 25% off its switching bonus – switch soon to bag the £100 offer

The switch bonus is available to new customers using the Current Account Switch Service (CASS) to move to Halifax's Reward or Ultimate Reward accounts, which feature in our best buys.

The £25 cut follows Halifax's move to slash its monthly reward payments from £5 to £3, which comes into effect today.

Currently, it's possible to make £136 in the first year if you switch to the Reward account – but from Wednesday 1 March that maximum figure will drop to £111.

This is still a decent offer, but it's possible to make even more – up to £209 in the first year – by switching elsewhere. Take a look at our Best Bank Accounts guide for full details.

What do the Halifax accounts offer?

The Reward and Ultimate Reward accounts pay new customers a £100 switching bonus (£75 from 1 March), so long as they use the CASS to fully switch from an existing account at another bank. Halifax offers one of the quickest bonus payments, promising to have the cash in your account before your switch is complete.

Both accounts also give you a £3 monthly reward (£36/year) if you stay in credit, pay in at least £750/month and have at least two direct debits leaving your account.

Ultimate Reward account holders receive the reward as a deduction on the £15/mth account fee – so overall they'll pay £12/mth.

What does Halifax say?

Managing director Russell Galley says: "We believe it is not only our competitive switching offer but also the high levels of service we deliver which encourages customers to make the move to Halifax.

"Our switching offer will continue to be one of the most rewarding and straightforward available. That mirrors our commitment to providing simple, easy-to-access banking facilities to our customers, allowing them to manage their accounts in a way and at a time that suits them best."

Other bank account best buys

If the upcoming reduction to Halifax's switching incentive has put you off moving to the bank, there are other options that'll pay a pretty penny for your custom:

• First Direct offers £125 to switch via our link (it's £100 if you do it direct). It's won every bank service poll we've done.

• TSB offers £125 to switch via our link (nowt direct), plus 3% interest on up to £1,500 and up to £5/mth contactless cashback.

• HSBC offers £150 to switch, plus another £50 if you stay for a year.

• Co-op Bank will pay you £110 to switch, plus up to £5.50/mth with its Everyday Rewards scheme.

• M&S Bank gives a £50 M&S gift card to switch and an additional £5/mth added to the gift card for two years.

All these offers require you to use the banks' switching services, and most also need you to switch a certain number of direct debits, meet minimum pay-ins and jump through other hoops. Full info can be found in our Best Bank Accounts guide.