HSBC going to start charging ALL current account holders??

Open_Wallet_Surgery

Anybody heard anything about the rumour that even if your HSBC current account remains in credit all month, they are going to charge you ?

Somebody at work read something in the Daily Mail and on thisismoney about this.

Cheeky so and so's methinks :mad: as I currently spend around £200 a month on my HSBC credit card - I assume HSBC makes 1% on this
Also my current account normally is well in credit and I get a measly 0.1% on this.

Comments ?

MPH80

See here:

http://forums.moneysavingexpert.com/showthread.html?t=236424

reserved

The article I read (can't remember where - senior moment) referred to First Direct only, not HSBC.

Obviously I only got half the story as MPH80's post!!!!

penrhyn

There has been a thread about First Direct doing this.
First Direct is an HSBC business.

This is probably as a result of people who are not able to manage their money none the less having sucess in claiming back"illegal "bank charges.

If HSBC do this the others will follow.

Open_Wallet_Surgery

http://www.thisismoney.co.uk/news/article.html?in_article_id=411250&in_page_id=2

Looks like its HSBC and First Direct !!!!!!!!

MarkyMarkD

This was an obvious consequence of the "illegal" bank charges nonsense, despite the claims of many that it was inconceivable that banks would ever charge personal banking customers in the UK.

It's strange that they manage to charge customers everywhere else in the world, and that they did so in the UK until HSBC's predecessor Midland Bank (ironically) rocked the boat.

C_Ronaldo

why should we be charged if we have a current with say first direct,

fiish

I think this notion of charging us customers to hold an account is like double dipping... Banks need our deposits in order to raise capital for loans and credit, on which they make the bulk of their profits, and the customer is rewarded for the deposit with interest.

So they're taking the money we put in and using it to make money. Now we're going to be charged to give them money for the same said purpose. At my current understanding of how banks work (which is low), that doesn't look fair and I think many laymen would feel the same.

HSBC already charges a subscription for current accounts by the way, for international students and foreigners. I opened my account before the charges were introduced and have been informed that I will not be affected by that change, but many of my more junior compatriots now face an even more expensive study period in the UK.

MarkyMarkD

Banks don't make any money out of borrowing from current account holders at (say) 4% and lending it out on credit cards at (say) 0%.

If there are no charges on either side of the equation, the banks will not bother.

If charges for unauthorised transactions become a thing of the past, there will EITHER be charges for "normal" transactions, or lower credit interest rates and/or higher overdraft interest rates.

At the end of the day, accounts which don't make a turn for the bank's shareholders will not continue to be offered in the long term.

Graham_Devon

fiish wrote:

I think this notion of charging us customers to hold an account is like double dipping... Banks need our deposits in order to raise capital for loans and credit, on which they make the bulk of their profits, and the customer is rewarded for the deposit with interest.

So they're taking the money we put in and using it to make money. Now we're going to be charged to give them money for the same said purpose. At my current understanding of how banks work (which is low), that doesn't look fair and I think many laymen would feel the same.

HSBC already charges a subscription for current accounts by the way, for international students and foreigners. I opened my account before the charges were introduced and have been informed that I will not be affected by that change, but many of my more junior compatriots now face an even more expensive study period in the UK.

Most of the money that banks lend come from savings accounts and investment accounts, current accounts, in theory would have too little in, and the amount would fluctuate far to much.

BullyCornedBeef

They already have the Bank AC Plus and Premier AC's that they charge for. If they are going to charge I will find a new bank.