Not eligible for the hsbc basic account?

Brallaqueen

Hi CK My mum doesn't have that much lying around (thankfully :eek:) but I can imagine that you have enough charisma and personal power to head issues off at the pass

My mum is not a stupid person at all, but she does have particular anxieties and needs that I (we) have to work around.

If I can do something to make things easier without having to restructure my banking as a whole then great.

CKhalvashi

Brallaqueen wrote: »

Hi CK My mum doesn't have that much lying around (thankfully :eek:) but I can imagine that you have enough charisma and personal power to head issues off at the pass

My mum is not a stupid person at all, but she does have particular anxieties and needs that I (we) have to work around.

If I can do something to make things easier without having to restructure my banking as a whole then great.

I generally chuck it into Lloyds, where they do have coin counting machines. Lloyds don't know I ever cabbed, just knew that £70k in cash was coming from somewhere for a few years (not all drivers earn that much, most considerably less, I was being 'fed' by the office as I also owned the company).

If they ask me whether it's for business, I tell them it's going into my personal account, as although I lived in the UK for over 20 years, I still work in cash most the time!

CK

jen245

CKhalvashi wrote: »

I do this, too, as it's been an old Cabbies trick for ensuring there's enough change in the car at all times, and it's become habit. I've got about £800 of change in the centre console of my car because I can't be bothered to bag it up, and don't pay for parking etc. Why should it accumulate?

CK

You have £800 in change in your car?! Just how big is your centre console?! Lol!

CKhalvashi

jen245 wrote: »

You have £800 in change in your car?! Just how big is your centre console?! Lol!

It's in the ashtray, cupholders etc. I've got a Jag XF Sportbrake (company car), and believe it or not, there's quite a bit of space in there!

Most of it is £1/£2 coins.

CK

Gentoo365

SnowTiger wrote: »

What advantage does a basic bank account have over an ordinary bank account to the customer and/or the bank?

For the bank the disadvantages are:

1) Possible extra liability if for some reason the account goes overdrawn (customer claims that it should not have happened due to account type and refuses to pay).

2) No income from debit card purchases (retailers pay to accept debit cards and the bank gets some of this fee)

3) More usage of cash machines (ATM transactions cost money, in the UK these fees are usually paid by your bank, on the basis that it equals out between the bigger banks over time)

4) Less chance of 'upsell' to profitable products

5) Less (or no) chance of the customer using overdraft facilities and hence paying interest.

Note that this post is an answer to the question, not a justification. I am not defending any banks, just explaining.

Current accounts can be a cost to the bank, they cannot do much with the money any more due to liquidity and segregation rules. So they have to pay all the costs for the services. For normal accounts it is worth it as enough people take on other products, or use their debit card so profit can be made.

Basic bank accounts are a requirements set in law because no bank would offer them otherwise. The shareholders could (in theory) sue the bank for doing so, as they would be losing money and hence not acting in the best interest of shareholders.

I don't think that a bank can say that you are not 'eligible'. Even if you have a good credit rating you can surely say that you are inexperienced at managing money and therefore are unable to open an account which has an overdraft facility.

pmduk

Gentoo365 wrote: »

Basic bank accounts are a requirements set in law because no bank would offer them otherwise.

Which law precisely? Surely they were a quid pro quo from the banking industry in return for Government paying benefts straight to bank accounts and as such have no legislative basis?

jonesMUFCforever

stclair wrote: »

That's fine however if someone asks for a basic account regardless of their credit history they should get one. So seeing the op has no relationship with HSBC they should just say I want to open a basic account and be done with it.

I am not disputing that.
I am only saying that the process of opening a bank account is exactly the same whether you want a basic account or a proper account or even a fee paying account.
They feed the information in to the machine and a decision comes out the other end. Some with bad credit history will get no choice but a basic account - others will be offered a choice of accounts of which a basic will be one.

JuicyJesus

pmduk wrote: »

Which law precisely? Surely they were a quid pro quo from the banking industry in return for Government paying benefts straight to bank accounts and as such have no legislative basis?

They were told "open basic bank accounts or we will make you". Simple as.

It's not like it's "in return" for that - benefits claimants are an almost uniquely unprofitable customer base (unless you're Wonga, and banks do not wish to be Wonga) and in general far more troublesome than they are worth. Having benefits paid into bank accounts serves the Government far more than it does banks - the Government can then run down and close expensive and less-used Post Offices, while shifting similarly the expensive cash handling, fraud liability and transactional costs caused by people who mostly work in cash and have neither the need, desire nor potential to purchase other financial products onto banks. Were it up to the banks, they wouldn't touch them with a bargepole.

Lith

Brallaqueen wrote: »

The current hsbc account requires 500 in income per month, as I want it to help budget for spends (~ 160 per month) I don't qualify.

it's 'BS' i have the current account and i don't pay in £500 a month i pay in £60 £300 sometimes even a tenner, they just say that on there website - they want the money, just advertising that's all it is' clever but it fails.

if you're under 25 this 'rule' doesn't apply to you, i had the HSBC account at 23 (now 25) still don't pay in £500.

stclair

jonesMUFCforever wrote: »

I am not disputing that.
I am only saying that the process of opening a bank account is exactly the same whether you want a basic account or a proper account or even a fee paying account.
They feed the information in to the machine and a decision comes out the other end. Some with bad credit history will get no choice but a basic account - others will be offered a choice of accounts of which a basic will be one.

That may the case if you apply in the branch. However if you apply online your most likely to get a basic account. They might offer you alternatives at end but your under no obligation to accept them. As in theory I think the Rbs group are the only ones that do full credit checks for basic banks accounts in the hope that someone might think oh ill have a fee paying one instead should they be offered one.