gatsbygirl8

Just got a letter from HSBC stating they are downgrading our current account, which has always been (to our knowledge) a regular old current account, to a basic account (i.e. no debit cards, just a cash card). The reason for this is that our account apparently now requires a minimum 500 GBP deposit monthly. In the six years since we opened this account, this is the first I've ever heard of this. It's not a premium account of anything like that.
Now we're really screwed because we have two UK credit cards we're still paying off. Every month, we use XE Trade to transfer money from the US into our HSBC account, then make an online payment using our debit card. I have no idea how we're going to be able to continue paying our cc if HSBC revokes our debit card, not to mention the hassle we're going to have the next time we visit the UK, try to buy Christmas pressies, etc.
I've already called and spoken with an HSBC rep, who says those are the terms of our account and there's nothing else we can do. This makes no sense to me.

Can anyone recommend a UK bank that doesn't have a minimum deposit?

tonrob

Would assume that a basic account still has online bill payments and/or direct debit features, so you could pay your CCs that way.

scrubbedexpat099

As you are no longer resident in the US you will not be able to open a UK account.

MrsWaring

Just a suggestion but as far as I am aware, you only need to deposit £500 into the account every month, not keep it there.

One thing you could consider (if you are in the financial situation to do so) is to transfer £500 every month, leave it for say a week or so, then transfer it back into US account. I'm not entirely sure if this would cause any further problems.

On another note, we have both a current and cardcash account with Halifax. (we are still in the UK). We use the cardcash for direct debits/ bills only and we can use online banking with this account.

tonrob

Any idea where this GBP500 "rule" popped up from?

Mrs tonrob and I have have a HSBC UK current account each, with debit cards, and also a joint account together, all of which we've held for years (17 in her case, 23 in mine). We certainly don't pay money in regularly, but have both just had letters confirming that our overdraft limits have been renewed for another year.

I have paid in lump sums occasionally to my checking account (maybe GBP2000 once every 2 years on average) just to leave a beer float for when I take trips back, but no deposits have been made to either of the other two accounts since we left the UK 7 years ago.

The overdraft limits have been reduced by HSBC over the years, but they are clearly still extending regular current account facilities to us - at least for another year.

Duncan Roberts

Same here, had an HSBC account since I was born and it was Midland. Every couple of years I wasn't using it at all I would get a letter saying that they had frozen it due to non use but a phone call and a promise to use it was all it took to get it going again. Now I transfer a hundred or so a month and its fine.

guitarmaan

I do recall some mention of a minimum deposit amount each month when we opened our HSBC current account. Maybe for some older accounts it's not applicable, but for ours opened a couple of years ago it certainly is.

That's quite a clever idea. Might be worth a try?

AdrianR

I'll chime in with two cents worth here.

I've had an HSBC/First Direct checking account and Visa credit card since 1994 and have been non-UK resident since 2003.

I use the visa card from time to time and make deposits to the check account (by foreign transfer) as needed so I can pay the CC bill online.

Never had a problem...methinks they're following 'Da Rulez' a little too closely and you need to speak with someone higher up the food chain.

materialcontroller

Banks have been tightening up over the last couple of years and now offer far less to customers than they once did. Even allowing for the fact that it was only ever a tiny nominal amount, a lot now don't pay any interest on current accounts. They're also reducing the number of other convenient features on a lot of standard current accounts and either require a minimum monthly deposit (as in this case) or a monthly/annual fee instead.

jjmb

its something to do with all the new American overseas reporting standards for foreign banks coming into effect in 2014. (FATCA) Here are some details in this Wall Street Journal article Its the same regulations that are making waves with the tax return requirements this year and why a lot of US citizens aboard are considering renouncing their citizenship - Tax time pushes some American to take a hike

tonrob

HSBC in the UK changing the type of debit card you have is something to do with FATCA? Are you sure about that?

Steve_

What's the difference?

I had the same letter, I found it quite amusing because I knew there was a minimum deposit limit and it has been years and years since I made any such deposit. I got the impression it was penny-pinching so they didn't have to pay me interest anymore on the account. But I have bugger all in it anyway and I only ever use it to buy Christmas presents for people I know in the UK so I couldn't give a crap honestly. Gave up all my UK credit cards many years ago now. I've actually gone through several debit cards without ever using them.

Sally Redux

They're handy when you visit though.

Steve_

It's nothing to do with that, I got the letter (and I live in Canada). The FATCA rules aren't in force yet. They will at some point have to ask all their customers whether they are US citizens though.

Steve_

Oh I agree, just making the point that it's all to do with HSBC penny pinching. I mean I do use my debit card to buy stuff on-line occasionally, what I meant was I never use it in person.