Withdrawing Abroad Charges

Buttercup

My Son is travelling around New Zealand working, I have just had a call from HSBC wishing to contact him regarding him using his HSBC card, she said the bank are charging him £28 a month no matter how many times he withdraws but if he signs up for a year they will just charge him £9 .95p per month. I can't find anything on the site to check this out, any advice welcome thanks.

grumbler

Buttercup wrote:

My Son is travelling around New Zealand working, I have just had a call from HSBC wishing to contact him regarding him using his HSBC card, she said the bank are charging him £28 a month no matter how many times he withdraws

I think they are telling rubbish. He pays 2.75% for all transactions plus 1.5%(min £1.75) for each cash withdrawal. Of course, if he is stupid enough to make many small withdrawals below £1.75/1.5%=£116(equivalent), he can end up wasting much more than £28 every month.
One £120 withdrawal costs £1.80 (on the top of unavoidable 2.75%); 12x£10 withdrawals cost £21.

but if he signs up for a year they will just charge him £9 .95p per month.

This is rubbish again. £9.95 is the first 6 months subscribtion fee for their Bank Account Plus (£12 p.m. after 6 months; Plus has a minimum 12 month initial term). With this account he wouldn't pay 1.5%(min £1.75) for each cash withdrawal. However, if he is wise enough not to draw small amounts, £9.95 fee is worthwhile only if he draws more than £9.95/1.5%=£663 :eek: cash every month.