MSE News: HSBC to offer £500 interest-free overdraft buffer to help with cost of living

MSE_Petar

HSBC is giving current account customers a £500 interest-free overdraft buffer for a year, if they request it. The banking giant says it's hoping to support those most in need of help with the rising cost of living.

Read the full story:
'HSBC to offer £500 interest-free overdraft buffer to help with cost of living – here's what you need to know'

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oldagetraveller1

And those who take up this offer, spend the £500, then are unable to pay it back in a year's time, will be hit with 39.9%EAR, variable interest!

I don't call that "support".

dealyboy

Nationwide BS Flex Direct offers this as standard on whatever arranged overdraft is agreed.

surreysaver

Could earn up to about £15 by sticking it in a savings account

Band7

surreysaver said:

Could earn up to about £15 by sticking it in a savings account

£25 if you can stick it into a Barclays Rainy Day Saver.

Before any tax, which is a factor for some people.

surreysaver

Band7 said:

surreysaver said:

Could earn up to about £15 by sticking it in a savings account

£25 if you can stick it into a Barclays Rainy Day Saver.

Before any tax, which is a factor for some people.

Already filled it up. Just stick it in the HSBC Online Bonus Saver. Haven't filled that up yet

Alex9384

surreysaver said:

Could earn up to about £15 by sticking it in a savings account

No fees, but it will show on your credit files that you've been overdrawn for a whole year...

How are most lenders going to interpret that? From my experience, probably in the worst way possible.

surreysaver

Alex9384 said:

surreysaver said:

Could earn up to about £15 by sticking it in a savings account

No fees, but it will show on your credit files that you've been overdrawn for a whole year...

How are most lenders going to interpret that? From my experience, probably in the worst way possible.

No different than having a 0% credit card with a persistent balance

Band7

It also may not matter to people who aren't after mortgages or other large credit.

fabsaver

dealyboy said:

Nationwide BS Flex Direct offers this as standard on whatever arranged overdraft is agreed.

I thought that was only for the first 12 months after opening the account. I can't see anything on their website about any free overdraft beyond that.

phillw

I maxed out my free overdrafts when banks offered it during covid, it doesnt seem to have made a huge difference. 

However there were a lot more people in overdrafts then and it would harm their business if they excluded everyone.

I'm more intrigued what HSBC will do, if in a year they see its been maxed out and I have a bonus saver. Will they decide I don't need an overdraft...