Reclaiming HSBC overdraft charges where savings account has sufficient funds?

Hi all,

Quite a lot of the articles and posts I've read regarding reclaiming overdraft charges emphasise how to negotiate with the bank if you're under financial hardship. I am wondering if anybody has had any luck getting a refund of overdraft charges where the overall bank balance was always positive?

I'll give a bit more background info about my case. Recently, my wife received an annual summary from HSBC for her Advance account and found about £500 of overdraft charges had been applied over the year. She doesn't regularly check her current account balance and statements, so when I looked back at her statements, most of the charges seemed to be a result of accumulated charges from consecutive days of being overdrawn.

The more annoying side of these charges is the fact that her overall account balance is always positive, but most of it is kept in the savings account. HSBC helpfully adds to the problem by calling at times to help her move the balance from her current account into her savings.

It would be nice to know if anybody has experienced something similar. If there was money in savings while the current account is overdrawn, does this make negotiation easier, harder, or just the same?

Finally, my wife is worried about talking to the bank as she isn't as confident about negotiating with them. Any opinions about me arguing on her behalf?

Thanks for reading!


  • Massively harder, the argument is about hardship, if you have savings, arguably even if small, then the hardship argument is massively reduced as it points to you simply being bad at managing your accounts than simply not having enough money to survive.

    Whilst banks will take from positive balances to repay debt if your accounts get totally out of hand that is supposed to be the exception not the rule. If you dont want to be charged for spending too much money in a single month you should be transferring funds from the savings yourself.
  • Archi_Bald
    Archi_Bald Posts: 9,681
    Name Dropper First Post First Anniversary Combo Breaker
    Probably very slim, if any, chance to get any money back. But your wife should consider at least 3 actions after that shock:
    1. do not ignore bank statements. If you can't/won't do online banking, at least open the letters the bank sends, and read them.

    2. start budgeting so no overdraft is being used. It is a bit silly to get into an overdraft if you have money sitting in a savings account, as the overdraft charges will always be massively higher than interest from savings

    3. move her savings away from HSBC. Apart from their Regular Saver which isn't the worst, all their savings interest rates are terrible. There are plenty of 3, 4 and 5% accounts about:
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