HSBC Advance

Catbells

I used to have more money than I do now and have had an HSBC Advance account for a few years. Recently I've had my finances under a microscope to cut back where I can as my income is decreasing.

The only advantage I see with the Advance account - which costs me around £12 a month - is travel insurance and Motor Insurance. I also have motor insurance with the AA so having it twice doesnt make sense.

I rang HSBC and she said they would halve the fee to £6 a month while I decide whether to end it. I am trying not to become overdrawn at the end of every month but am finding myself taking from savings in order to achieve this. Are there any other benefits to having an Advance account which I may have missed. Thanks.

gt94sss2

The 8% Regular Saver ?

However, if you are nor using any of the benefits with the account or can get the ones you do use cheaper elsewhere - there is no point in keeping the Advance account - just downgrade to a normal one.

It makes no sense to be paying twice for 'Motor Insurance' in the meantime- choose if you want to go via HSBC or the AA and cancel the other (the AA will let you 'suspend' your membership I understand)

Regards
Sunil

rb10

Depending on how often you travel, you can generally get fairly cheap single trip policies. Or, for European travel, you can get it free from Nationwide.

How cheaply can you get a suitable car insurance policy?

You need to do the sums based on your own needs. Is the cost of getting these products separately cheaper than the £144 that you are currently paying for the account?

It's worth factoring in that if you closed this account and switched to another bank, you'd likely be able to get a monthly reward, interest payment, or sign-up bonus from there.

dalesrider

Check the T/C of the breakdown insurance as many banks ones are the basic of basic and will only take you to the nearest garage to be repaired.

You can get personal cover from green flag for less that you are paying a year for the advance account.

Catbells

rb10 wrote: »

It's worth factoring in that if you closed this account and switched to another bank, you'd likely be able to get a monthly reward, interest payment, or sign-up bonus from there.

This may seem old fashioned but... I have been with HSBC for 35+ years (When it was Midland Bank) and I feel secure with them. But I could be persuaded to move if the benefits were much better although am cautious about freebies up front if the long term benefits don't follow on.

I am not a huge traveller abroad - maybe twice a year so could get Post Office insurance for around £50 for this. This in itself would save me nearly £100.

Have just taken out AA car insurance for £470 which was the best one I could find. UK recovery is free although Homestart isn't covered - so if my car didnt start I would have to get my local guy over to help.

dalesrider

You can get personal cover from green flag for less that you are paying a year for the advance account.

Thanks - Its all pointing to getting rid of the Advance account.

One other thing I need to check is whether the overdraft fee is lessened if you have an Advance account. I do get overdrawn every now and again.

Catbells

gt94sss2 wrote: »

The 8% Regular Saver ?
Regards
Sunil

Thanks. I used to save more with Regular Saver but am only able to afford £50 a month now . Do you know if this facility only comes with HSBC Advance account?

gt94sss2

Catbells wrote: »

Thanks. I used to save more with Regular Saver but am only able to afford £50 a month now . Do you know if this facility only comes with HSBC Advance account?

No - its just a slightly higher interest rate with the Advance account - 8% rather than 6% normally. Not enough of a reason to get the account by itself especially if you can't save the full amount each month.

From your other post, it sounds as if you would be better off stopping Advance - at least until your AA insurance policy (with free motor insurance?) finishes and then review your options again.

One other thing I need to check is whether the overdraft fee is lessened if you have an Advance account.

So HSBC say - 2% off their standard rate..

Regards
Sunil

YorkshireBoy

Catbells wrote: »

One other thing I need to check is whether the overdraft fee is lessened if you have an Advance account. I do get overdrawn every now and again.

Well their 'representative' interest rates (yours may be different) are 17.9% vs 19.9% EAR, meaning an increase of £2 per £100 per year...or 0.5p per £100 per day. Insignificant?

Overdraft 'fees' are the same for both accounts I believe.

rb10

Catbells wrote: »

This may seem old fashioned but... I have been with HSBC for 35+ years (When it was Midland Bank) and I feel secure with them. But I could be persuaded to move if the benefits were much better although am cautious about freebies up front if the long term benefits don't follow on.

It's not just old fashioned, it's a waste of money.

You could get £60 per year just by banking at Halifax (provided you can pay in £1k/month).

You could get 3% interest on your current account if you had it at Lloyds TSB.

You could get free European travel insurance from Nationwide.

You could earn interest, and cashback on bills from Santander.

Or you could get zero from HSBC.

It's your loss.

Catbells

rb10 wrote: »

It's not just old fashioned, it's a waste of money.

You could get £60 per year just by banking at Halifax (provided you can pay in £1k/month).

You could get 3% interest on your current account if you had it at Lloyds TSB.

You could get free European travel insurance from Nationwide.

You could earn interest, and cashback on bills from Santander.

Or you could get zero from HSBC.

It's your loss.

Many thanks. I didnt know this.

Maybe if tell this, point by point to HSBC they might make me an offer similar to the ones you mention above. After all they reduced my Advance Fee by half when I said I was thinking of stopping it. Its worth a try.

Catbells

YorkshireBoy wrote: »

Well their 'representative' interest rates (yours may be different) are 17.9% vs 19.9% EAR, meaning an increase of £2 per £100 per year...or 0.5p per £100 per day. Insignificant?

Overdraft 'fees' are the same for both accounts I believe.

By both, do you mean Advance vs 'normal' bank account.

I usually am no more than £200 overdrawn in a bad month.