Moving to the UK and banking with HSBC

tng11

Hey all,

I am about to study in the UK in the new year and was surfing the forums a bit about personal finances in the UK.

I was wondering if people here have had experiences with HSBC Premier in the UK? I bank with them in Canada, and I am in the process of getting them to open an account for me in the UK along with a credit card as I filled out the application a week ago and I've been told I can expect the cards and a chequebooks soon.

How do their products line up with competitors in the UK? Are there any particular benefits to having the account? All I know now is I get the free money transfers between Canada and the UK.

One thing I could not find much info about is how long are cheques held when you deposit them into your account? In Canada I can put a cheque of any amount into the ATM or branch and the full amount is made available right away. Does that have something to do with cheque guarantees?

And how widespread is debit/credit card usage? In Canada I can almost pay for everything with a credit card and haven't used cash in a while, I just pay off the bill at the end of every month.

Thanks for the help!

noh

Information on the cheque clearing cycle can be found here:-
http://www.chequeandcredit.co.uk/information/-/page/the_cheque_clearing_cycle/

The use of personal cheques is declining. Their use is probably less common than that in Canada.
More use is being made electronic transfers.

Credit/Debit card usage is widespread I personally hardly use cash.

jambosans

tng11 wrote: »

How do their products line up with competitors in the UK? Are there any particular benefits to having the account? All I know now is I get the free money transfers between Canada and the UK.

Although I do not bank with HSBC, they are held in high regard by many members of this forum, and have a good customer service record.

tng11 wrote: »

One thing I could not find much info about is how long are cheques held when you deposit them into your account?

Cheques work on the 2-4-6 clearing cycle. You deposit the cheque on day 0; it earns interest from the 2nd working day; made available from the 4th working day; and cannot be withdraw from the 6th working day. There are some exceptions, for example, some banks will make funds available a day early.

tng11 wrote: »

In Canada I can put a cheque of any amount into the ATM or branch and the full amount is made available right away. Does that have something to do with cheque guarantees?

You can deposit cheques at ATM's, but this can add to the aforementioned clearing times above. Over the counter before close of business follows the above. The availability is not linked to guaranteed cheques, to guarantee a cheque you need to have a cheque guarantee card. This functionality can be provided on your HSBC Visa Debit Card, but you would need to arrange this with HSBC.

tng11 wrote: »

And how widespread is debit/credit card usage? In Canada I can almost pay for everything with a credit card and haven't used cash in a while, I just pay off the bill at the end of every month.

Pretty much everywhere takes debit or credit cards.

LeeSouthEast

I have several friends who bank with HSBC. Never heard any complaints

England is a cash free society these days. Debit cards are King, closely followed by credit. I have used exactly 1 cheque in 5 years (no joke).

Inactive

LeeSouthEast wrote: »

I have several friends who bank with HSBC. Never heard any complaints

England is a cash free society these days. .

That could well be misleading to a stranger to our shores, we are not a " cash free " society at all, I often use cash for payments.


BTW, Welcome to the forum tng11.;)

LeeSouthEast

Bad choice of words, perhaps. My point was there are very few places you can go that do not accept plastic as a payment method.

tng11

Thanks for the replies!

It's good to know that it's similar to Canada where I can pay for most things with debit/credit. I've never used a cheque to pay for goods at stores so I should be fine without them.

I got my debit card today and it has a 250 pound cheque guarantee, but from what I've read I thought they were getting rid of cheque guarantees. Still waiting for my credit card.

Newbie2saving

I'm a HSBC Premier customer and so far have had a good quality of service from them (since it began in UK). The online banking is excellent, really clear, easy to use and immediate transfers between HSBC accounts. I have found though that you have to do some research on the products online as I haven't been made aware of the extra benefits I get as a Premier customer.

Good luck with the move.

456789

tng11 wrote: »

Thanks for the replies!

It's good to know that it's similar to Canada where I can pay for most things with debit/credit. I've never used a cheque to pay for goods at stores so I should be fine without them.

I got my debit card today and it has a 250 pound cheque guarantee, but from what I've read I thought they were getting rid of cheque guarantees. Still waiting for my credit card.

Yes they are but some banks still have them for a while

Once you get here have a look at other banks aswell

I would also advise carrying some cash with you - for example the barber might not accept a card, some small shops only accept cards for goods over a certain amount etc. you should get used to where you can use your card (most places) when you get here

good luck with the study

tng11

I have a few more questions (I think they're getting tired of me sending messages through internet banking).

I've been reading on this forum about overdrafts and it seems there are huge fees if you overdraw your account when using your card. In Canada, banks will simply decline your transaction if you don't have the funds in your account, no fees are charged. I found out I have a £500 overdraft limit on my account and that it is "interest free"- so if I use it will there really be no fees?

Also, if I use my debit card at stores does the money get taken out of my account immediately and I can see the transaction details right away? I know for credit cards it takes a few days to show up but back home if you used debit the transaction would post immediately.

Finally, do bank accounts in the UK actually appear on your credit report? (Only credit cards show up on Canadian credit reports) I was given a current and savings account by default and I was also given a £5,000 credit card- in a few months will that help me to get products from other banks? I found out my HSBC Premier Savings pays a paltry 0.1% interest and I would like to find a bank with better rates for savings once I arrive.

Lokolo

tng11 wrote: »

I have a few more questions (I think they're getting tired of me sending messages through internet banking).

I've been reading on this forum about overdrafts and it seems there are huge fees if you overdraw your account when using your card. In Canada, banks will simply decline your transaction if you don't have the funds in your account, no fees are charged. I found out I have a £500 overdraft limit on my account and that it is "interest free"- so if I use it will there really be no fees?

Also, if I use my debit card at stores does the money get taken out of my account immediately and I can see the transaction details right away? I know for credit cards it takes a few days to show up but back home if you used debit the transaction would post immediately.

Finally, do bank accounts in the UK actually appear on your credit report? (Only credit cards show up on Canadian credit reports) I was given a current and savings account by default and I was also given a £5,000 credit card- in a few months will that help me to get products from other banks? I found out my HSBC Premier Savings pays a paltry 0.1% interest and I would like to find a bank with better rates for savings once I arrive.

If it's an interest free overdraft of £500 anything you spend upto -£500 will be ok and not be charged. If you try and spend over this the transaction may go through and you maybe charged.

Current accounts do show on credit report yes.

Savings accounts have no correlation with credit reports.

Money is taken from you available balance usually straight away but will not show on main balance or statement for a few days after (usually).