23rd August 2014
HSBC is planning to upgrade 1.3 million banking customers to an ‘Advance’ account.
From 10 November the high street bank will offer a new Advance bank account with as no monthly fee. The 1.3 million existing HSBC bank account holders who pay a minimum of £1,750 into their account each month will be automatically upgraded to the new account.
The account will allow customers to access preferential savings rate, a 24/7 helpline, a daily ATM withdrawal allowance of £500 and free worldwide withdrawal transactions from ATMs.
Existing Advance customers will still be able to benefit from worldwide travel insurance, motor breakdown assistance and mobile phone cover for a reduced fee of £9.95, a reduction from the current price of £12.95.
Customers can opt out of the insurance offer and take advantage of the standalone account with no monthly fee if they wish.
Earlier this week HSBC announced it was cutting its e-ISA savings rates from 1 October due to ‘downwards market pressure’. Those with a HSBC Premier current account will receive 1.6% in the Loyalty cash ISA, but if you have an Advance account you will receive 1.5%, despite the company promising ‘preferential rates’ on savings.
If consumers have any other HSBC accounts they will receive 1.4%.