First Direct has boosted the cash carrot on offer to those who switch current account.

For many years, First Direct has offered £175 to those willing to ditch their bank and join - but today, it has ramped it up to £200.

The £25 improvement means the bank matches the best cash offers from rivals Natwest and Barclays, suggesting it has had to make the move in order to attract more customers.

Andrew Hagger, personal finance expert at Moneycomms, said: 'First Direct has consistently delivered first class customer service over many years with its UK-based call centre.

'The £200 switch offer is definitely worth a look particularly as the account comes with a £250 interest free overdraft and the option of a regular savings account paying  7 per cent.'

To get the £200, you need to use the Current Account Switch Service, which you can do on the First Direct website, and move over at least two Direct Debits. 

You then need to deposit £1,000, make five or more debit card payments and log into its digital banking app or online banking service. 

You won't be eligible for the account if you have ever held a First Direct product or if you have opened an HSBC current account on or after 1 January 2018 - First Direct is an offshoot of HSBC.

Rachel Springall, of Moneyfacts Compare, said: '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. 

'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. 

'The latest £200 offer from First Direct on its 1st Account joins the fray alongside the same cash offers from selected accounts from NatWest and Barclays. 

'The NatWest Rewards account boasts a scheme for customers to earn monthly rewards. 

'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.'

There aren't many downsides to taking the cash as the switch service does most of the work for you. 

There will be a slight hit to your credit score as banks will perform a 'hard' credit check on your account, so it may be worth avoiding a switch if you are about to apply for a big loan, such as a mortgage. 

First Direct does not have any physical branches but you can use HSBC branches for everyday counter services, such as depositing cash and cheques. 

The bank does however offer a 24/7 UK-based call centre via phone and live chat that might come in handy if you need to contact them. 

The debit card is also free to use abroad - it doesn't charge any foreign exchange fees and gives you market-rate conversions. 

The account also has no monthly fee.