HSBC to hike overdraft fees from March

Yorkshire_Pud

eskbanker wrote: »

The only document I can find is the one SnowTiger linked at post #8, which I've just summarised in post #18 - it doesn't say anything about a £20 fee plus interest....

Yes that's it.

Clear to me its a £20 charge on top of OD fees.

eskbanker

Yorkshire_Pud wrote: »

Yes that's it.

Clear to me its a £20 charge on top of OD fees.

Sigh....

What do you think the word 'maximum' signifies here?

The Monthly Maximum Charge is the maximum amount we might charge you in a month for having an unarranged overdraft.

If you're still struggling to understand, they publish an explanatory document that spells it out in more detail, at https://www.hsbc.co.uk/content/dam/hsbc/gb/pdf/accounts/making-sense-of-overdrafts.pdf:

Monthly cap on unarranged overdraft charges

1. Each current account will set a monthly maximum charge for:
(a) going overdrawn when you have not arranged an overdraft; or
(b) going over/past your arranged overdraft limit (if you have one).

2. This cap covers any:
(a) interest and fees for going over/past your arranged overdraft limit;
(b) fees for each payment your bank allows despite lack of funds; and
(c) fees for each payment your bank refuses due to lack of funds.

john539

born_again wrote: »

Expect ALL banks to be in the same ball park.

Given FD are part of HSBC it won't be long and they will be the same %.

Lets face it they have to give 90 days notice of variation of terms. Pretty sure FD have already sent out several of these this year already.

FD operate as separate bank and do have different policies.

eskbanker

john539 wrote: »

FD operate as separate bank and do have different policies.

....but by a spooky coincidence have now announced an identical interest rate change the day after HSBC's!

https://www.moneysavingexpert.com/news/2019/12/first-direct-follows-hsbc-in-hiking-overdraft-fees-from-march/

Thrugelmir

john539 wrote: »

FD operate as separate bank and do have different policies.

By next April expect all banks to have followed a similar line. Policies will all change.

born_again

john539 wrote: »

FD operate as separate bank and do have different policies.

https://forums.moneysavingexpert.com/showthread.php?t=6078972

In other news I got it 100% right :rotfl::T

john539

eskbanker wrote: »

....but by a spooky coincidence have now announced an identical interest rate change the day after HSBC's!

https://www.moneysavingexpert.com/news/2019/12/first-direct-follows-hsbc-in-hiking-overdraft-fees-from-march/

Spooky indeed.

But FD is keeping £250 interest-free arranged overdraft.

john539

born_again wrote: »

https://forums.moneysavingexpert.com/showthread.php?t=6078972

In other news I got it 100% right :rotfl::T

Not quite, see above. :rotfl:

eskbanker

john539 wrote: »

Spooky indeed.

But FD is keeping £250 interest-free arranged overdraft.

HSBC are also keeping interest-free arranged overdrafts for products (or individual accounts) that already have them, while also introducing a somewhat tokenistic interest-free £25 (wow!) facility on some of their other accounts too, including what I believe to be the most popular ones.

Arguably that's what's more often referred to as a buffer rather than a genuine interest-free overdraft facility, but every little helps and all that....

il638

I see lots of talk about a 40% interest charge. Others seem to have missed there's a monthly cap of £20.

The BBC doesn't mentioned the cap at all.

Maximum annual charge for an arranged or unarranged overdraft with HSBC will be £240 a year.

Who's likely to lose out? Punters who use an arranged overdraft of less than £600, it appears their charges will double.

Saint Martin Lewis, editor of MSE: 'After 10 years there's finally an end to unfair bank charges'.

thanks so this actually works out better then, i have a 5k overdraft in theory i would pay less, luckily i dont use it but its good to know if i need to ill only be charged 20 quid a month.