Paragon Bank HSBC connection?

Aged · 21 February 2018 at 2:22PM

I have received the paperwork to open an ISA with Paragon Bank and was a bit suspicious to read this in the section regarding the bank sort code for transferring funds in - 'this may show up as HSBC, we partner with them to provide access to payment services'. Is this legit?

eskbanker · 21 February 2018 at 2:47PM

Yes, a slightly fuller version of the explanation is published on their website under the payments section at https://www.paragonbank.co.uk/FAQ:

This may show up as HSBC - don't worry, we partner with them to provide our customers with access to payment services such as faster payments and BACS. Your money will reach us and then your account.

Various smaller players use the main high street clearing banks for such purposes, which will often mean that faster payments will be processed on a 'next business day' basis rather than the quicker handling when shifting money between direct participants of the FP scheme....

dunstonh · 21 February 2018 at 2:56PM

Is this legit?

Much in the same way that you use a bank to hold your bank account, Paragon use HSBC for theirs.

It is very legit and quite normal. Until relatively recently, most building societies used to use the clearing banks for clearing duties as they themselves were not cleaing banks. Some still do. Being a bank does not automatically make you a clearing bank

Aged · 21 February 2018 at 5:08PM

OK that makes sense, thank you!

Paragon Bank HSBC connection?

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