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HSBC Graduate Overdraft - no longer interest-free!
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ellie_jane_2
Posts: 22 Forumite
My boyfriend and I and my sister all received letters from HSBC today kindly informing us that they are changing our Graduate Bank Accounts to a normal Bank Account. The main change of this is that our overdrafts are no longer interest-free with effect from 19th July
Now, this may not seem like such a problem until you consider that the original terms we agreed to were that our interest-free overdrafts would last at least 3 years after graduation (we all graduated 2 years ago), and we now have less than 4 weeks to pay it off. Many graduates count on their interest-free overdrafts to get by every month, especially as our wages are not very high and our student loan payments are often very high!
Sorry for the rant but I think it's awful how little we are valued by HSBC - I will be changing banks ASAP (any recommendations?) - especially since we are encouraged to go to uni, even those of us from low-income households, they lend us a load of money (which we now pay commercial rates of interest on) and now they are taking away our interest-free overdraft with only 4 weeks' notice! I will definitely be complaining to HSBC tomorrow - I did ring up to be told that it was their right to take the privilege away at any time, and that loads of people had complained.
Now, this may not seem like such a problem until you consider that the original terms we agreed to were that our interest-free overdrafts would last at least 3 years after graduation (we all graduated 2 years ago), and we now have less than 4 weeks to pay it off. Many graduates count on their interest-free overdrafts to get by every month, especially as our wages are not very high and our student loan payments are often very high!
Sorry for the rant but I think it's awful how little we are valued by HSBC - I will be changing banks ASAP (any recommendations?) - especially since we are encouraged to go to uni, even those of us from low-income households, they lend us a load of money (which we now pay commercial rates of interest on) and now they are taking away our interest-free overdraft with only 4 weeks' notice! I will definitely be complaining to HSBC tomorrow - I did ring up to be told that it was their right to take the privilege away at any time, and that loads of people had complained.
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Are you sure you haven't misread your letter? Everyone I know is getting an interest free portion of £1500, and it's only money over that amount that will attract interestMurphy's No More Pies Club #209
Total debt [STRIKE]£4578.27[/STRIKE] £0.00 :j
100% paid off :j
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Are you sure you haven't misread your letter? Everyone I know is getting an interest free portion of £1500, and it's only money over that amount that will attract interest
For some reason, my letter says the first £1000 will be interest free, and anything overw ill be charged at 18.8% or something similar.Amo L'Italia0 -
We definitely have not mis-read the letters, in addition I rang HSBC last night and the (very rude) operator told me that HSBC is no longer offering interest-free overdrafts to any of its customers. Obviously I know that this isn't true, I will be writing a very long letter of complaint to the bank and I will be closing my account ASAP.0
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ellie_jane wrote: »We definitely have not mis-read the letters, in addition I rang HSBC last night and the (very rude) operator told me that HSBC is no longer offering interest-free overdrafts to any of its customers. Obviously I know that this isn't true, I will be writing a very long letter of complaint to the bank and I will be closing my account ASAP.
I would close my account, but:
I do like the interest free overdraft, great for overspending on a one-off or toping up the ISA, even if it's been reduced from 1750 to 1000. No other bank would offer that to me.
Maybe when the interest free overdraft limit has completely gone I will move, but not just yet.
Be careful not to shoot yourself in the foot.Amo L'Italia0 -
Hi all,
I had the same letter, went to my branch today and saw a customer services advisor who very very helpful (and probably more honest that he was meant to be).
Basically you can now only hold a graduate account for 2 and not 3 years after graduation, thus you will loose your interest free overdraft after two years. Thius decision was made by HSBC in the last couple of weeks due to the credit crunch. In fact I had a letter two weeks ago saying my 1000 interest free element of my overdraft would stay in place until 18th May 2009, and now it'll be gone on 19th July 2008!
The advisor also told me there is a danger HSBC will pull everyones with very little notice, so warned me to get anyone I know to try and clear their overdrafts. I got the sense he was disgusted with what HSBC were doing, hence why he told me more than he should. In fact he even told me that the official line he was supposed to say was that:
"In order to be able to offer new and more exciting products to our customers HSBC are changing the graduate account to be a two year service"
Be warned HSBC customers!
Time to shop for another bank me thinks!
Lil'HRiding out the receession.........0 -
I received my letter yesterday. What a twist, it states that
"As part of the change you will no longer be eligible for an interest free overdraft, however your overdraft limit will remain unchanged!" For a price that is. Like any other graduate I have debts, my overdraft has not changed since I was in my second year, 4 years ago. Now I'm frantically looking around for a better deal.
Only trouble is I put £3000 in my bank and so will only get half of it back, cos half is in my overdraft.
Advice from this website is go to Alliance and leciester, their account has 0% on overdraft for first year, then you get charged 50p a day for everyday you are in the overdraft. Max is £5 a month, to me it doesnt seem bad!
Does neone else have any suggestions, apart from writing a very strong letter to HSBC?0 -
That's awful... I'm not with HSBC (thankfully), but now I'm scared of something similar happening to mine. I want to get it paid off asap but I only got my results on Friday so I'm still looking for a job...Finally bought a homeStarting mortgage £289,500 31.01.19 - Current outstanding £192,586.98/CENTER]Overpayments since 27.03.19: £52,407.470
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Chrissie84 wrote: »I received my letter yesterday. What a twist, it states that
"As part of the change you will no longer be eligible for an interest free overdraft, however your overdraft limit will remain unchanged!" For a price that is. Like any other graduate I have debts, my overdraft has not changed since I was in my second year, 4 years ago. Now I'm frantically looking around for a better deal.
Only trouble is I put £3000 in my bank and so will only get half of it back, cos half is in my overdraft.
Advice from this website is go to Alliance and leciester, their account has 0% on overdraft for first year, then you get charged 50p a day for everyday you are in the overdraft. Max is £5 a month, to me it doesnt seem bad!
Does neone else have any suggestions, apart from writing a very strong letter to HSBC?
I have been emailing newspapers and media and yesterday got a call from Radio 4, I would suggest that everyone does this too as if we make enough of a noise then they may retract their decision - as they did last year with the student accounts. I have also emailed HSBC with my concerns and they replied saying they are looking into it.
However in the meantime I have also switched to Alliance & Leicester!0 -
redrabbit29 wrote: »I would close my account, but:
I do like the interest free overdraft, great for overspending on a one-off or toping up the ISA, even if it's been reduced from 1750 to 1000. No other bank would offer that to me.
Maybe when the interest free overdraft limit has completely gone I will move, but not just yet.
Be careful not to shoot yourself in the foot.
Hi there - unfortunately my overdraft with HSBC is now not interest-free for any portion of it, so you are lucky if yours still isn't getting charged interest.
On a side note, Alliance & Leicester is offering all new customers an interest-free overdraft of £2000, which is more than HSBC. In addition, if you are in credit you get 8.5% interest with A&L compared to 0.1% with HSBC. So I don't think I've shot myself in the foot at all!0 -
ellie_jane wrote: »Hi there - unfortunately my overdraft with HSBC is now not interest-free for any portion of it, so you are lucky if yours still isn't getting charged interest.
On a side note, Alliance & Leicester is offering all new customers an interest-free overdraft of £2000, which is more than HSBC. In addition, if you are in credit you get 8.5% interest with A&L compared to 0.1% with HSBC. So I don't think I've shot myself in the foot at all!
Not bad actually, is the £2K interest-free overdraft for all customers, regardless of position? Also, what's the policy on it getting reduced, e.g. does it only last for 6 months or something?
I've heard poor things about A&L's customer service (mind you, HSBC is hardly great is it?!).
I'm a bit reluctant to switch as I've been with HSBC since I was 16 (24 now). I'll give it some thought though!Amo L'Italia0
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