HSBC student -> graduate account

Basher · 16 Jul 2007 at 20:17

AcidHell2 said:
They've always done that.

On £1500 it works out like £3 a month, so nothing to worry about.

end of first year they drop your interest free section to 1000 then the year after drop it to 500 then finally to zero.

Surely it's more like £12 a month!? 9.9% of 1500 ( as we have no interest free overdraft anymore) is 148.5 / 12 = 12 something

Steedie · 16 Jul 2007 at 20:19

I've just upgraded my Abbey account to a graduate account, they told me my overdraft stays at £1500 interest free, but lowers by £250 every year until it hits £250 where it stays at that

I was pleased as I was worried it would be like yours and they would start charging me interest

Glaucus · 16 Jul 2007 at 20:23

Basher said:
Surely it's more like £12 a month!? 9.9% of 1500 ( as we have no interest free overdraft anymore) is 148.5 / 12 = 12 something

ah good point, it's probably as I go around the zero mark when I get paid. forgot about that. But even so £12 isn't a lot.

toadsy666 · 16 Jul 2007 at 20:30

Steedie said:
I've just upgraded my Abbey account to a graduate account, they told me my overdraft stays at £1500 interest free, but lowers by £250 every year until it hits £250 where it stays at that

I was pleased as I was worried it would be like yours and they would start charging me interest

Well thats what the HSBC one was, until today. Well, lowered more than £250, but very similar.

Basher · 16 Jul 2007 at 20:41

AcidHell2 said:
But even so £12 isn't a lot.

Perhaps, but they didn't tell us about it was my key concern, and why stay with HSBC when plenty of other banks will offer you a free overdraft?

Vote with your feet and teach them a lesson, it's what i'm doing!

Glaucus · 16 Jul 2007 at 20:42

Basher said:
Perhaps, but they didn't tell us about it was my key concern, and why stay with HSBC when plenty of other banks will offer you a free overdraft?

Vote with your feet and teach them a lesson, it's what i'm doing!

which offer you a free overdraft?

Basher · 16 Jul 2007 at 20:43

AcidHell2 said:
which offer you a free overdraft?

Interest free I mean, and most other banks will, certainly on graduate accounts.

NerveAgent · 16 Jul 2007 at 20:52

Ive just switched to a Natwest Graduate account, paid off my hsbc overdraft and closed it down.

toadsy666 · 16 Jul 2007 at 20:59

Basher said:
Perhaps, but they didn't tell us about it was my key concern, and why stay with HSBC when plenty of other banks will offer you a free overdraft?

Vote with your feet and teach them a lesson, it's what i'm doing!

Hmmmm, can you transfer an account to a different bank?? Like before they start to charge me interest? I know people change credit cards all over the show, but can it be done with accounts?

NerveAgent said:
Ive just switched to a Natwest Graduate account, paid off my hsbc overdraft and closed it down.

Think I'll be doing that- it's annoying though, I've been with HSBC since before they were HSBC, and they've always been good. Suppose all good things come to an end.

Basher · 16 Jul 2007 at 21:02

toadsy666 said:
Hmmmm, can you transfer an account to a different bank?? Like before they start to charge me interest? I know people change credit cards all over the show, but can it be done with accounts?

Yes, also, due to some recentish banking code changes, all of your standing orders, DD's etc will be transfered over to you. Also they cannot charge you as they have not given you adequate notice. As I have mentioned I have this in writing from the graduate marketing manager, if they try and charge you, complain, a lot!

Cheers,

James

Kitchster_uk · 16 Jul 2007 at 22:22

I'm afraid this is a reaction to the massive amount lost on Grad/student accounts. We (HSBC) are the first but won't be the last to do this. The amount of £1500 o/d's that get maxed and never repaid is frightening tbh. What's worse is he few that max that THEN go on a spending spree with their chq book and guarantee cards. These people are the ones messing it up for the rest. The bank is a business at the end of the day and has to justify to the shareholders etc why it loses money on certain things and before anyone whines about how much money the banks make, 1 in 3 UK pensions is directly affected by HSBC stock so it is in everyone's best interests that the bank performs.

Basher · 16 Jul 2007 at 22:52

Kitchster_uk said:
I'm afraid this is a reaction to the massive amount lost on Grad/student accounts. We (HSBC) are the first but won't be the last to do this. The amount of £1500 o/d's that get maxed and never repaid is frightening tbh. What's worse is he few that max that THEN go on a spending spree with their chq book and guarantee cards. These people are the ones messing it up for the rest. The bank is a business at the end of the day and has to justify to the shareholders etc why it loses money on certain things and before anyone whines about how much money the banks make, 1 in 3 UK pensions is directly affected by HSBC stock so it is in everyone's best interests that the bank performs.

Can you explain why you (HSBC) didn't bother telling us? And a good percentage of support staff I spoke to had no idea of the changes!?

Going to Cali · 16 Jul 2007 at 22:55

Can anyone explain to me how it works? I'm with HSBC, student account. I have one more year at uni, i expect my od will be about 1k. Once I graduate, will they immediately start charging me or do I get time to clear it?

Basher · 16 Jul 2007 at 22:57

Going to Cali said:
Can anyone explain to me how it works? I'm with HSBC, student account. I have one more year at uni, i expect my od will be about 1k. Once I graduate, will they immediately start charging me or do I get time to clear it?

As soon as your student account becomes a grad account, they will start charging you 9.9%

Kitchster_uk · 16 Jul 2007 at 23:02

Basher said:
As soon as your student account becomes a grad account, they will start charging you 9.9%

Incorrect, you should be transferred on to a standard graduate account, not Graduate Plus. Mail seems to be a mess at the moment, getting more and more complaints about stuff not arriving that I can see has been sent out.

Graduate Plus is free for the first 3 months and then £9.95 per month afterwards and being as ther was a recent training session in this and several circulars, the staff should know better - it's easy enough to find the info on our systems. Do not accept being 'upgraded' to Plus unless it is going to be a benefit. There is the flight offer plus annual travel insurance, free ATM withdrawals abroad and loads of offers via the website as well as the o/d being interest free.

Basher · 16 Jul 2007 at 23:04

Kitchster_uk said:
Incorrect, you should be transferred on to a standard graduate account, not Graduate Plus. Mail seems to be a mess at the moment, getting more and more complaints about stuff not arriving that I can see has been sent out.

How is what I said incorrect? You will be transfererd to a standard grad account, where you will be charged 9.9% on your overdraft :confused:

Going to Cali · 16 Jul 2007 at 23:15

Shame there's no time frame for paying off my OD without charges. After I graduate there'll be expenses when I move into a job etc. Could have done without the hassle of extra fees.

Basher · 16 Jul 2007 at 23:20

Going to Cali said:
Shame there's no time frame for paying off my OD without charges. After I graduate there'll be expenses when I move into a job etc. Could have done without the hassle of extra fees.

Like I've said, they can't charge you until they have given you 'adeequate notice'. If you spot a charge this month, for example, complain, you should be able to get it taken off.

Kitchster_uk · 16 Jul 2007 at 23:32

Basher said:
How is what I said incorrect? You will be transfererd to a standard grad account, where you will be charged 9.9% on your overdraft

Apologies, I thought you'd posted £9.95 - teach me to flit in beween MSN and the forums!

calnen · 16 Jul 2007 at 23:32

My girlfriend got the same letter this morning. Are they really allowed to change their policy and give you (literally) zero notice? If we'd known they were going to charge her, I'd have used my overdraft to fill hers.

It'll only cost a couple of pounds for the week it'll take to work out, but there are probably half a million students with HSBC (and a lot of them will actually pay the fees!) so they'll make a killing on this.

Anyone considering paying it: Switch to Natwest. You get a £2000 overdraft with no interest at all.