HSBC increasing charges, suggestions for an alternative?

I don't really know why but when we took out a mortgage with Hsbc to help pay for a rental property we were given a free business account. All that happens is that rent is paid in once a month and the mortgage is paid back to Hsbc once a month. Surely I don't need a business account for that. Do you think I could just exchange account for ordinary current account?

I also received a letter from HSBC. Given I may perform one or two online transactions every quarter it seems madness to pay £5.50 account maintenance. Especially considering no additional benefits are included in the fee (such as insurance cover) and the online banking offering is average.

I did not get any offer to switch to an 'Electronic Banking Tariff'. When I checked the HSBC notice document, it shows the Business Direct account being renamed to Electronic Banking with the charge going from free to £5.50 per month?

Currently looking at Metro Bank (£2k minimum balance) or Carter Allen (£5k minimum balance).

All of the other high street banks seem to charge a fee. The free banking period seems to only apply from incorporation date, rather than when you opened an account. The way this is marketed on their websites is (borderline) misleading.

If the free period starts from account opening I would happily jump ship to another high street brand.

Odd that HSBC would want to shakeout customers. It wouldn't be the first time they have applied a monthly fee on customers by mistake. A few months ago they started charging an international fee.

InsideInsurance wrote: »

Yes, I am however preparing to switch banks instead.

Me too! Who are you thinking of going with?
(I think that was the purpose of this thread )

RBS was my suggestion (until I saw Atidi's post)
Metro bank looks a good alternative if you are are around London anytime to actually apply.

starlights wrote: »

I don't really know why but when we took out a mortgage with Hsbc to help pay for a rental property we were given a free business account. All that happens is that rent is paid in once a month and the mortgage is paid back to Hsbc once a month. Surely I don't need a business account for that. Do you think I could just exchange account for ordinary current account?

You don't really need a business account for that.
Whether HSBC would agree now they managed to sell you a business account, I don't know. You can but ask.

If they won't provide you a personal account for that, then I suggest you vote with your feet and open an account with another bank instead.:)

Atidi wrote: »

I liked that RBS suggestion, Wywth, so I thought I'd give them a try.

Next she oddly said to me that her division were going to be sold off very soon, within the next 2-3 years but was not permitted to say to whom. I asked if she meant RBS or NatWest. She said neither, just the direct business arm.

The reason she can't say who the business arm is going to, is they probably don't know yet! It was due to be sold last year (to Lloyds IIRC but could be wrong), but it all fell through so they've had to start looking again for a buyer. I think the Government are wanting/forcing the sale.

I've had an RBS Business Banking Direct account for about 6 years and never paid any charges except the odd £4 if a customer bounces a cheque on me. Can't pay cash in, but I work around that.