HSBC Changing all Bank accounts

maz_student

What is everyone else going to do? Ive been with HSBC all my life (even when it used to be called Midland Bank!). Is it best to move to another bank? And if so, what bank is the best one?

I have an idea and wanted to get someones opinion on this. I have two accounts with HSBC: a current account and an ISA account.
Is it okay to use the money from my ISA account to pay in £500/month into my HSBC account? That way I will be qualified for the better bank account. The reason why Im asking is because I dont want to do anything wrong and get in trouble!

I just dont like the idea of having to change banks because Im used to HSBC and ive always been satisfied with the way they do things.:(

Sorry If my post is off-topic in any way.

dougz_2

Before people get too worried about being demoted to a non-Advance account at the changeover, in case you have not been informed of that yet, I suggest waiting to see what HSBC actually give you. They are giving me the Advance one despite me having failed to pay in £500 month over each of the last 12 months. So I am not sure exactly what their criteria is, maybe it was only looking at the last few months when I have happened to be moving some savings back and forth, or something?

Whatever it was, I am now in the position where I am worried I will in future have to make sure I do arrange to pay in £500 each and every month, just to keep the services, which will be an extra hassle I don't need. That would be a lot easier if I could just flip a cummulative total of £500 back and forth between their Flex savings account, but I don't know if that would count?

ShelfStacker_3

maz_student wrote: »

What is everyone else going to do? Ive been with HSBC all my life (even when it used to be called Midland Bank!). Is it best to move to another bank? And if so, what bank is the best one?

Just out of interest, what are you going to lose by being changed from a Bank Account to a Current Account (new one)? You won't lose your debit card or cheque book, you just won't get statements as often or be able to guarantee cheques with your card after your current card expires.

maz_student

ShelfStacker wrote: »

Just out of interest, what are you going to lose by being changed from a Bank Account to a Current Account (new one)? You won't lose your debit card or cheque book, you just won't get statements as often or be able to guarantee cheques with your card after your current card expires.

Apologies for not being clear in my original post.

I was trying to make the point that I wont be getting the same amount of interest (since Current Accounts give hardly anything). And yes, I know it sounds silly, but because Im a student and Im trying to save up money (to get onto the property ladder ASAP) it matters to me.

In all honesty, though, I havent read the letter in great detail. Reason being because I was on my way out and decided to take the letter with me (so I ended up skim-reading the letter on the bus). I guess I should read it in more detail again. I just havent put it on the top of my priority list because I know that the changes will take effect in Dec 2008 and I still have plenty of time to arrange something else.

After skim-reading the letter, Im under the impression that after Dec 2008, HSBC will transfer the money in my ISA account into a Current Account and then I'll be hardly getting any interest (and that's whats bothering me:rolleyes:). I will re-read the letter, in more detail this time, of course!

ShelfStacker_3

maz_student wrote: »

After skim-reading the letter, Im under the impression that after Dec 2008, HSBC will transfer the money in my ISA account into a Current Account and then I'll be hardly getting any interest (and that's whats bothering me:rolleyes:). I will re-read the letter, in more detail this time, of course!

Whoa, whoa, hold up: HSBC will NOT transfer the money in your ISA into your Current Account. No, no, no, not happening. That will stay precisely where it is. I don't know how you read the letter, but the one I've got says nothing even remotely connected to money being transferred out of savings accounts. You must have skim-read it in a very, very strange way.

All the changes mean is that you won't get a cheque guarantee card, access to the 8% regular saver or monthly statements if you credit less than £500 a month. That's it. All your other accounts will be unaffected.

Bismarck

main changes for the non advance version seem to be loss of the paltry interest, switch to quarterly statements and no future cheque guaranteeing.

I didn't actually see any mention of no future chequebooks - that would be an inconvenience as we do use them sometimes....the blurb just refers to "you get the things you'd expect" but no mention of chequebook in the headlines...

Rich1976

I have received the letter from HSBC, informing me my account will become the 'current account', this is despite the fact that apart from one month I have paid between £500-£600 into the account each month since opening the account in April. My main account that the salary is paid in to is with First Direct and then I transfer anything left over to HSBC. I have logged a complaint via the internet bank and received a garbled response telling me to ring customer services. Customer services then told me that there is nothing they can do, so I have fired off a letter to my branch.

If I am downgraded then not receiving monthly statements would be a great inconvenience - and no it is not always convenient to down load them off the internet. A current account should produce a monthly statement not quarterly as people need to monitor transactions.

Also it appears that the bank are penalising customers who don't have their main account with them which is grossly unfair. I can understand people not being upgraded if they don't use the account very often but mine is used on a weekly basis for personal spending etc.

If HSBC won't budge then it 's off to somewhere else I suppose

guli

Rich1976 wrote: »

I have received the letter from HSBC, informing me my account will become the 'current account', this is despite the fact that apart from one month I have paid between £500-£600 into the account each month since opening the account in April. My main account that the salary is paid in to is with First Direct and then I transfer anything left over to HSBC. I have logged a complaint via the internet bank and received a garbled response telling me to ring customer services. Customer services then told me that there is nothing they can do, so I have fired off a letter to my branch.

If I am downgraded then not receiving monthly statements would be a great inconvenience - and no it is not always convenient to down load them off the internet. A current account should produce a monthly statement not quarterly as people need to monitor transactions.

Also it appears that the bank are penalising customers who don't have their main account with them which is grossly unfair. I can understand people not being upgraded if they don't use the account very often but mine is used on a weekly basis for personal spending etc.

If HSBC won't budge then it 's off to somewhere else I suppose

Yes, it's good to vent and let out steam but no use to complain. Vote with your feet if you don't like their service or terms and conditions.

Free market rules!

Lokolo

I suspect they are actually saying £6k a year, compared to the £500 a month as it would not be useful if they had to change accounts each month as someone didn't put £500 etc. in.

As you have only just put in £500 for 6 months I suspect by April/May they will upgrade your account to the new one when it has been released.

Beate

I knew nothing about this until I got the letter 2 days ago! As I pay my salary into my HSBC Current Account, I will be getting the Advance Account. They dress it up as if nothing was changing to my account and I would even get more benefits. Well I can't see that!

- Eligibility for 8% Regular Saver: I have been saving with that for years already.
- Ability to manage and keep track of my account 24 hours a day: er, thanks, I have had internet banking for ages already.
Monilink for free with some phone providers: I actually signed up for this once as you got £10 from them, haven't used it since so don't care.
Access to Identity Theft Assistance: I am sorry but this should be provided by my bank anyway!
One free credit report a year: Nice but Martin has already said how you can get these for free.

Oh yes, and then they tell me that as "many of you said that you'd prefer better savings products than getting a very ordinary 0.1% AER rate of credit interest on a current account, we won't be paying credit interest on Current Account Advance."

Great, thanks! Now don't get me wrong, I am no muppet and only keep enough in my HSBC account to cover my outgoings (all other money is stashed with other banks), so the loss of interest will be minimal but hey, it's the principle! I don't see any advantages in their redecorations and as already said by some here, people who will only get the normal Current Account look to be losing some benefits like access to the 8% Regular Saver, which is about the only saving product that is good at HSBC!

I have read the blurb about the Advance Account and it says "If you pay in more than £500 into your HSBC account each month, you qualify for Current Account Advance." It does not say that the money must come from a salary. So if someone does not want to be downgraded by 1 December, they could do what I do with my Alliance & Leicester account which also requires a £500 input each month: Transfer £500 in from another account each month by standing order and then transfer it out again after it hits the account. This is perfectly legal and with standing orders you don't even have to think, it will be done automatically.