For anything longer term, you may find it cheaper to use personal loans. You can opt out of the arranged or unarranged texts at any time by phone, or by calling into branch. A formal overdraft request is when you approach us in advance to set up an overdraft for a period of up to 12 months. Having even a small surplus left in your account at the end of each month could save you money in overdraft interest and/or fees over time. Based on an assumed arranged overdraft of £1,000 for an HSBC Student Bank Account, the rate is 0% EAR (variable), giving a representative rate of 0% APR (variable), Based on an assumed arranged overdraft of £1,200 for an HSBC Premier Bank Account, the rates are 0% EAR (variable) on the first £500, 39.9% EAR (variable) thereafter, giving a representative rate of 21.8% APR (variable), Based on an assumed arranged overdraft of £1,200 for an HSBC Jade Bank Account, the rates are 0% EAR (variable) on the first £1,000, 39.9% EAR (variable) thereafter, giving a representative rate of 5.8% APR (variable). Current rates are between 9.9% and 19.9% EAR, but from next year all account holders will be charged a blanket rate of 39.9% EAR for all arranged overdrafts. Arrange a limit with us, so when you’re near or go past the set limit, we’ll send you a text alert. 0% EAR variable. HSBC UK currently charges rates of 9.9% to 19.9% on arranged overdrafts, but the higher rate will be applied across its whole range of accounts except for its student bank account. An unarranged overdraft is when you authorise a payment that would take your account overdrawn or beyond your arranged limit without agreeing in advance an overdraft to cover it. Personal Overdraft. HSBC Overdraft Protection provides you with coverage for occasional shortfalls in your HSBC Chequing account 1, giving you peace of mind that results from knowing that your cheques, pre-authorized payments or other transactions such as cash withdrawals or Interac® e-transfers and Point of Sale transactions will be honored up to your approved overdraft limit. We will always try to make your payments even if you do not have sufficient cleared funds in your account and the payment would take you over any arranged overdraft facility. You’ll need to bring identification and proof of your address. If approved the overdraft will be provided for up to 31 days to cover the item concerned. HSBC and Santander ordered to refund overdraft fees to more than 100,000 customers. An arranged overdraft is one you’ve agreed with us in advance. M illions of HSBC customers are poised to have their overdraft interest rate fees quadrupled under a new lending scheme.. If you’re an HSBC customer, you can call our team of specialists on 0345 850 0622 to get a helping hand. £500. $0 . ‘We’re only an accident away from having nothing’: How Monzo and HSBC's new overdraft charges could harm British families. If you have any further queries, or need help understanding your overdraft, please visit our FAQs below. Unarranged overdraft monthly maximum charge, Follow HSBC UK on Facebook This link will open in a new window, Follow HSBC UK on Twitter This link will open in a new window, Follow HSBC UK on YouTube This link will open in a new window, Our website doesn't support your browser so please upgrade, View our service status to see how we're doing, Careers, media, investor and corporate information, Unarranged Overdraft service not available. 1. HSBC UK is also temporarily reducing the interest rate charged over the interest-free buffer on all these accounts from 39.9% to a rate of 19.9%, which was the rate set for the majority of its customer base before the introduction of the bank’s new simplified overdraft structure (2-page PDF 395KB), which recently came into effect. £1,000. About 8 million HSBC customers are to have their overdraft rate doubled – and in some cases quadrupled – to 39.9% as it becomes the biggest UK bank so … Each current account will set a monthly maximum charge for: We've introduced some new text alerts to let you know when you go into or are due to go into your arranged overdraft. Based on an assumed arranged overdraft of £1,200 for an HSBC Bank Account, the rate is 0% EAR (variable) on the first £25, 39.9% EAR (variable) thereafter, giving a representative rate of 38.9% APR (variable). Details of applicable service charges can be found in the Personal Service Charges/Statement of Disclosure.Terms and conditions of the Credit Agreement – Line of Credit or Overdraft and Personal Banking Agreement apply. See Select Credit Summary of Terms . Apply for or manage your arranged overdraft in the mobile app. There’s a monthly cap on unarranged overdraft charges of £20 on our accounts. HSBC adds that customers don't need to do anything as it will contact both current and former users. Alternatively, call 500 55 4722 (within UAE) or +971 4 366 9090 (outside UAE). One place to start is by reviewing your monthly commitments and seeing if there’s anything you could cut back on. 1 March at 12:44AM in Reclaim Bank & Credit Card Charges. Representative example: Based on an assumed arranged overdraft of £1,200 for an HSBC Graduate Bank Account, the rates are: Year 1:  0% EAR (variable) on the first £3,000, 39.9% EAR (variable) thereafter, giving a representative rate of 0% APR (variable), Year 2: 0% EAR (variable) on the first £2,000, 39.9% EAR (variable) thereafter, giving a representative rate of 0% APR (variable), Based on an assumed arranged overdraft of £1,200 for an HSBC Bank Account Pay Monthly, the rate is 0% EAR (variable) on the first £25, 39.9% EAR (variable) thereafter, giving a representative rate of 38.9% APR (variable). Representative example: Based on an assumed arranged overdraft of £1,200 for an HSBC Current Account, the rate is 0% EAR (variable) on the first £25, 39.9% EAR (variable) thereafter, giving a representative rate of 38.9% APR (variable). HSBC is to bring in a single overdraft rate of 39.9% for UK customers from March 2020, as much as quadrupling the rate it charges some customers. HSBC – Channel Islands & Isle of Man . Your available balance will also continue to take into account any pending payments. The monthly cap on unarranged overdraft interest for your account is £20. Opting out of alerts may mean you incur avoidable costs. However, if we are not able to agree to unarranged overdraft and a payment is refused, we will not charge you a fee for refusing the payment. You can also see your limit in the top right hand corner of recent statements. The good news is there are some practical steps you can take. HSBC Group  |   © Copyright HSBC Group 2002-2020. Overdraft Fees . Please use our Live Chat option if it’s available, or you can find our contact details at the bottom of this page. HSBC current account customers can book an appointment to apply in branch by calling 03457 404 404. You will be able to find out what your overdraft rate is by looking at your most recent current account statement. You can use our calculator to find out how much an overdraft through your HSBC current account could cost over a period of up to 31 days. APR (Annual Percentage Rate) is the rate at which someone who is borrowing money is charged, calculated over a period of 12 months. Be prepared for unplanned expenses with an overdraft facility from HSBC. UK banks have escaped the threat of a regulatory investigation into unarranged overdraft charges, but the City watchdog has said it will keep a close eye on pricing throughout the Covid-19 crisis. The balance part isn’t changing, but your available balance will no longer include any arranged overdraft limit. Use overdraft limit by making free cash withdrawals at HSBC Bank Armenia ATMs and branches (free encashment from branches is available only in case if amount is debited from Overdraft limit. We also offer the Pay Monthly Money Calendar, a quick, interactive tool to help you take an objective look at your spending. An unarranged overdraft is one we haven’t agreed with you in advance. It’s easy to get in touch online. At the beginning of December HSBC announced it would be following Nationwide and would also penalise customers with a 39.9 per cent interest rate on their overdraft from March 2020 – … HSBC's new £5-a-day overdraft explained. Monzo overdraft rate: App-based bank joins HSBC, Nationwide and others in hiking interest . You can use online banking or our mobile app to apply for and manage your arranged overdraft. Fees and charges for HSBC Banking and Wealth Management customers Find the latest fees and charges for bank accounts, deposit and payment services, overdrafts, mortgage and general banking services – such as copies of documents and safety deposit boxes. Monthly Fee : Pro-rated on HKD50 based on utilisation % of the credit limit in the previous month, maximum HKD50. Member FDIC. Talk to us directly through our chat channels. However, there was disagreement about how many HSBC … There are also details of the special privileges for HSBC Premier customers, and tips to save you money, time and effort in running your account. 39.9% EAR variable. Continually using your overdraft may mean you face significant interest charges, which can make it harder to repay the debt. Coronavirus guidance . The first £25 of an arranged overdraft is interest-free. HSBC has agreed to pay an estimated £8 million to approximately 115,754 customers. HSBC customers are set to see a significant hike on their overdraft charges from next year, with interest rates to shoot up by nearly 40 per cent. Further details can be found online in our Making Sense of Overdraft document. If you anticipate you may want to make frequent informal overdraft requests, it will be cheaper for you to apply in advance for a formal overdraft. Product Terms and Conditions apply . HSBC raised its overdraft charges to 39.9 per cent on March 14, up from 9.9 per cent for premium arranged overdrafts and 19.9 per cent for standard ones. you owe. Overdraft Fees resulting from ATM and everyday debit card transactions . MoneySaving Newbie. Fees and charges (PDF, 237KB) Fees and charges (PDF, 237KB) Download link. Year 2: 0% EAR (variable) on the first £2,000, 39.9% EAR (variable) thereafter, giving a representative rate of 0% APR (variable). Contact and Support . Remove any available overdraft from the description of a customer’s ‘available funds’ (HSBC, First Direct and … The bank, which charges overdraft rates of between 9.9pc to 19.9pc to some customers, is planning to impose a flat overdraft rate of 39.9pc from March. Whether you have an arranged overdraft facility or not, most of our accounts include an interest-free buffer. HSBC Group  |   © Copyright HSBC Group 2002-2020. HSBC could be the first major UK lender to charge customers for current accounts, as it tries to make up for the record low interest rates that have … However, free banking could soon be over for most of the bank’s UK customers, who have standard bank accounts that offer overdraft facilities. It takes into account not just the interest, but also any other charges that may have to be paid and any interest-free amount. It can help in months where there are extra expenses and unplanned events. 39.9% EAR variable . For details, please refer to Overdraft Fees & Charges.. 2. It doesn’t include any other fees or charges. You can apply for, increase, decrease or remove an arranged overdraft in online or mobile banking. They are based on assumptions rather than precise calculations. Representative example: Based on an assumed arranged overdraft of £1,200 for an HSBC Bank Account, the rate is 0% EAR (variable) on the first £25, 39.9% EAR (variable) thereafter, giving a representative rate of 38.9% APR (variable). We will report accounts that have been in a continuous unarranged overdraft for 30 or more days to Credit Reference Agencies, which could negatively affect your credit file and your ability to get credit in the future. First Direct customers get an automatic £250 interest free overdraft amount, while HSBC Premier account holders get a £500 interest free overdraft, so these charges only apply when these customers exceed these limits. An unarranged overdraft occurs when you spend more money than you have in your account and any agreed overdraft limit with your bank. Exactly how you’ll … HSBC Jade Account. You’ll have to pay interest if you have an unarranged overdraft. Our website doesn't support your browser so please upgrade. interest for going over/past your arranged overdraft limit; fees for each payment your bank allows despite lack of funds; and, fees for each payment your bank refuses due to lack of funds, Your arranged overdraft – to help you monitor your usage, Your unarranged  overdraft - so you know when you've gone over any interest free or arranged overdraft limit and what action you can take. Our team of financial specialists will talk to you about your situation and help you find a solution. HSBC OVERDRAFT CHARGES. 103 posts. You’ll usually see this at ATMs or when you’ve logged on to online banking. If you have one, you’ll automatically start using it when your balance falls below £0. For informal overdrafts where you have an existing formally agreed limit and go over this limit, we charge interest at the rate we have agreed with you on balances up to your facility limit and will charge our Currency Standard Debit Interest Rate 3 on any balance over … £50 interest free 'Buffer', the amount borrowed is drawn down in full at noon on the date of calculation, you are overdrawn for a continuous period – you don’t dip in and out of your overdraft, at the time you go into your overdraft the balance of your current account is £0, no other credits and or debits will be made from the account during the borrowing period, the outstanding balance will be repaid in full on the last day of the borrowing period, the interest rate will remain the same during the whole borrowing period, going overdrawn when you have not arranged an overdraft; or, going over/past your arranged overdraft limit (if you have one). 39.9% EAR variable. 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