HSBC Grad Acc Removing Interest Free Overdraft

Meatballs

(I don't think this affects current HSBC Graduate holders - just new graduates.)

The HSBC website has the following details:

The HSBC Graduate Service is currently closed to new applications. There will be a revised Graduate Service available in the near future. In the interim, you may want to consider Graduate Plus or Bank Account.

The interest rate pdf file (http://www.hsbc.co.uk/1/PA_1_5_S5/content/uk/pdfs/en/stu_grad_int_rates.pdf) shows that accounts before 31st May will continue on the old gradually reducing interest free overdraft scheme.

New accounts opened from the 16th July will be charged 9.9% EAR.

There is no mention of how recently finished student accounts will be transferred or what to. There is a gap in the dates from the above file!

So I sent a message to HSBC:

Dear Mr x

Student Account

Thank you for your e-message received 24 June 2007

Please be advised that your 4th year Student Account will be converted to Graduate Account during the last weekend of June. Due to this the interest free limit on your Student Account will be reviewed.

Further I confirm that from 16th July, the interest free overdraft limit will be withdrawn on the Graduate Accounts. This has been replaced with the banks best rate of 9.9 per cent on all borrowing (HSBC does not charge a separate rate for unauthorised borrowing).

We are writing personally to all final year students over the next few weeks to advise them that they will start to be migrated onto the standard Graduate account from the weekend of 14/15th July. The 9.9% overdraft rate will come into effect at some point after this date.

Please note that until the conversion is completed you will continue to maintain your interest free student overdraft. The overdraft limit you had on your student account will remain the same.

However, for any time critical matters you can call our Customer Service Centre at 08457 404 404(UK) or ++44 1226 261 010 (International), where my colleagues can assist you.


Kind regards
Sainath Sridhar
HSBC Internet Banking Customer Support

It is a little unclear as to exactly what is happening as the message contradicts itself saying the interest rate will be applied 'at some point' whereas before it was very clearly the 16th.

Just a warning to let people know they may need to start moving for a new current account. Check out the articles on best current account and best student accounts!

See thread on Student Board: http://forums.moneysavingexpert.com/showthread.html?t=479809

masonic

It's not really contradictory. It looks to me as though they'll migrate as many people as they can over the weekend, with the new rate coming into effect on the 16th, and anyone left over will get a few more days interest free until they get to them. Not very useful, though, as you won't know in advance if you're going to be one of those lucky people.

morg_monster

I'm really disappointed in HSBC for this, it seems a mean, sneaky thing to do. It takes years to get back on your feet (ie permanently in the black) after uni, even with a well paid job. My HSBC graduate account was just converted to a regular current account since its 4 years since I graduated, it has been mainly dormant for a while but I'm going to go ahead and close it and tell them its because of this.
Whatever happened to wooing the students/graduates because they're the ones bringing more money to HSBC in the future? Maybe they finally realise we're not the loyal sheep we once were...
I hope that students vote with their feet - if they are indeed able to take their overdraft elsewhere with a possible low salary - and I also hope that the other banks don't follow suit!

BASFORDLAD

well prehaps its time students are treated the same as people who work, students need to get in to the real world!

masonic

BASFORDLAD wrote: »

well prehaps its time students are treated the same as people who work, students need to get in to the real world!

Perhaps we should just close all the universities altogether and put everyone out to work in the fields, eh?

Blacksheep1979

BASFORDLAD wrote: »

well prehaps its time students are treated the same as people who work, students need to get in to the real world!

or perhaps when a financial institution tells you they will do something when you open an account, maybe they should do it?

BASFORDLAD

but banks have a right to change t+c and then give u the appropiate time frame to take ur business else where

sampa99978

I'm a student graduating this year and have a HSBC student account. Except in my case I graduate in November so it might be safe to assume that I won't get the interest free overdraft.

After sinking further into my overdraft without choice, up to the limit of £1750, to have that help getting out of it snatched away is worrying.

Of course I'll be switching, but what about those who wouldn't think to, or are too loyal to the bank to change? Needless to say I'll be telling everyone I know in the same situation to switch!

jamesmbradley

Right, I have been into two branches to ask about this, both had no idea what I was talking about and had to ring up to get details!

Has anyone actually been officially contacted about the changes yet? I know I haven't neither have any of my friends. How can they expect us to make arrangements to clear debt when accounts change over on the 16th of July, when we do not actually technically know about the changes yet!!?? I asked this to the branch manager at my local branch and she was silent!

I tried to open a grad account at RBS, but as I have no proof yet that I have graduated, I am unable to! So at the moment I am technically not a student, but not a graduate!

The branch manager told me that she had no power to change anything but if enough people complain things might change, so everyone go and see your branch/ring up or nothing will be done!

What annoys me the most is the fact that only have we very very little time to find funds (£1500 in two weeks for me!) but we had to find out through the paper!

At the moment I just don't know what to do, both branches I have seen have said they have no power to do anything, I am in London tomorrow, I am tempted to go over to canary wharf and see if I can do anything there, grrr I extremely annoyed!

jamesmbradley

BASFORDLAD wrote: »

but banks have a right to change t+c and then give u the appropiate time frame to take ur business else where

That's the problem, we have not been given the appopriate time frame, and it is not possible for me to change to another graduate account, as I have no proof of graduation until November!

sampa99978

Just popped into my branch to check, one member of staff had heard about it but not the other.

Basically, if you've graduated before 31st May and have a graduate account, you're fine. Else - uh oh! They also said that HSBC were in the process of writing to all those customers concerned so I'm sure we'll hear soon (?) enough.

They had my details as graduating next month, so I told them to change my end date to Nov 07, which is true, as I'm doing a Masters. Might be interesting to point out they didn't ask for any proof although I had it with me....

Methinks I'll switch closer to November