Thank you HSBC

izools

I've recently moved from contracted to permanent employment with the NHS which is great. As such, I'm going to be six weeks without pay, so for the first time in a very long time I'll need to use my overdraft in October.

Time flies, it's been a year already since I opened my HSBC account. I forgot that they review overdrafts annually and it came as a mild surprise to me when I received a letter today from them - which stated they will review my overdraft.

My heart sank as I recalled all the threads here stating banks, especially HSBC / First Direct withdrawing overdrafts upon their annual review. My letter stated my formal overdraft of £500 will be withdrawn as of 26th October - one day before my six weeks worth salary arrives.

But I read on, and much to my delight HSBC have agreed to continue the £500 overdraft facility (or as they phrase it "A new 12-month overdraft facility") until the next annual review.

*Phew*

Just wanted to say Thank You HSBC, got me out of a hole there

Cash_Flow

izools wrote: »

I've recently moved from contracted to permanent employment with the NHS which is great. As such, I'm going to be six weeks without pay, so for the first time in a very long time I'll need to use my overdraft in October.

Time flies, it's been a year already since I opened my HSBC account. I forgot that they review overdrafts annually and it came as a mild surprise to me when I received a letter today from them - which stated they will review my overdraft.

My heart sank as I recalled all the threads here stating banks, especially HSBC / First Direct withdrawing overdrafts upon their annual review. My letter stated my formal overdraft of £500 will be withdrawn as of 26th October - one day before my six weeks worth salary arrives.

But I read on, and much to my delight HSBC have agreed to continue the £500 overdraft facility (or as they phrase it "A new 12-month overdraft facility") until the next annual review.

*Phew*

Just wanted to say Thank You HSBC, got me out of a hole there

Did that cost you £25.00?

casper_g

Cash_Flow wrote: »

Did that cost you £25.00?

It shouldn't have done, as long as there's been no request for an increased overdraft in the last year (including an "informal request" ie going over your limit).

I get this letter every year, and it always has me worried until I read to the end! I wish they just said "dear x, we are renewing your overdraft" instead of "we are cancelling your overdraft. Oh, and (a page later) we are replacing it with another one exactly the same."

hello2007

HSBC is great they renew my overdraft every year without fail not like Co-op who took away my overdraft without any notice.

Stuart_W

hello2007 wrote: »

HSBC is great they renew my overdraft every year without fail not like Co-op who took away my overdraft without any notice.

...and my experience is the exact opposite. HSBC pulled mine (at at time when I could have really needed it, fairly soon after being a student) and The Co-op renew my current free overdraft every year without fail.

As auto-man says, ALL banks can remove overdrafts at any time. They should not be relied upon as guaranteed.

The OP is describing one of the only situations where an overdraft may actually be worthwhile (effectively a very short term loan prior to payday). Don't get caught out on relying on it each month, though! Well worth working it down each month once you've got through your 6-week pay gap. Congratualations on the permanent job! :-)

JuicyJesus

Everyone will get a different renewal decision with different banks. Everyone has different circumstances and every bank has different criteria.

Talking up a bank because they renewed your overdraft seems a little strange. But if it makes you happy, who can blame you?

izools

Stuart_W wrote: »

...and my experience is the exact opposite. HSBC pulled mine (at at time when I could have really needed it, fairly soon after being a student) and The Co-op renew my current free overdraft every year without fail.

As auto-man says, ALL banks can remove overdrafts at any time. They should not be relied upon as guaranteed.

The OP is describing one of the only situations where an overdraft may actually be worthwhile (effectively a very short term loan prior to payday). Don't get caught out on relying on it each month, though! Well worth working it down each month once you've got through your 6-week pay gap. Congratualations on the permanent job! :-)

You're absolutely right Stuart.

I haven't every really used my overdraft in the year I've had the account anyway - maybe a couple of quid (literally) for a day or two.

Once I get paid at the end of October I'll be very much in the black again anyway and won't have any recourse to use the Overdraft again.

Thank you for the congratulations, it's a big break for me after six years kind of "drifting" from low-paid temp and contractor IT work here and there to be on a decent salary with a fantastic organization on a permanent basis

Oh and in response to chappie's query - the letter confirmed there will be no fee charged.

Since my OP there's a chance I won't need to use the OD anyway, as I've had a tax rebate along with my P45 from the consultancy firm I worked for previously, £150 cashback from Quido came through, too, and a £250 cheque from BSM for driving lessons I paid for but didn't use (cancellation came up so I took my test early and passed!).

But still. Thanks anyway, HSBC

darkvader

Though I am constantly tempted to leave HSBC and move to FD, their service just holds me back.
Most recently I dropped an email and told them their charges for the Advance account is not acceptable and being a long time customer, in comparison with other great offers around, theirs made no sense for me to stay back. 24hours later I get a call to review why its not of value to me and the call ended with halving my monthly fee as long as I stay.

The other thing no one ever mentions on this forum is their 8% Regular saver for Advance, Premier etc holders is that you get one of these PER account holder. So for a joint account it means £500 a month at 8% and now with my monthly fee halved, I really feel, putting their online banking, customer services and offers together, they are definitely one of the better firms to bank with.

So thats a big Thank You from me and the OH too :-)

DV