HSBC Advance Account Review – Forbes Advisor UK

November 24, 2022 by No Comments

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HSBC’s Advance Account comes with an interest-free overdraft up to £25, discounts from retail partners and access to a regular savings account — with no monthly fee. The bank is also offering £200 for a full switch.

Representative Example

The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide on how much carrying a balance could cost. Your personal offer may vary from the representative APR example.

For an arranged overdraft of £1,200, the first £25 will be charged at 0% variable EAR (Equivalent Annual Rate). EAR is 39.9% variable thereafter, giving a representative APR 38.9% (variable). Subject to financial status.

Pros

  • £200 welcome bonus for full switch
  • Interest-free overdraft up to £25
  • No monthly fee
  • Access HSBC Regular Saver Account

Cons

  • Overdraft charged at 39.90% AER above £25
  • Welcome bonus and overdraft facility subject to status

Key perks

£200 switching incentive

Overdraft

First £25 interest free

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Key features

  • £200 welcome bonus for full switch to HSBC
  • Access to linked Regular Saver account paying 1.00% AER 
  • Interest-free overdraft of £25 (subject to status), arranged overdrafts cost 39.9% AER
  • Online and mobile banking available

Who is eligible?

To be eligible for an HSBC Advance account, customers must be aged 18 or over. Contact details, ID and proof of address must also be provided so the bank can carry out a credit check. 

Although HSBC accepts applications from outside the UK, non-UK residents may not be able to access all account features. 

To qualify for the bank’s £200 welcome bonus, switchers must complete a full switch through the Current Account Switch Service. They cannot have opened an HSBC or First Direct current account since 1 January 2019. 

HSBC’s switching offers are subject to status and can be withdrawn at any time. 

The Advance Account can be held solely or jointly.

Other factors to consider

Along with a £200 switching incentive, HSBC Advance Account holders can access the bank’s Regular Saver Account, which is currently paying 1.00% AER for 12 months on balances up to £3,000.

Customers can also sign up for the home&Away scheme, which offers discounts when using the card to spend with partners including Costa Coffee and ASOS. 

Eligible account holders receive an interest-free overdraft up to £25. Above this threshold, arranged overdrafts are charged at 39.9% EAR, giving a representative APR of 38.9% (variable). 

As with any credit facility, overdrafts are offered subject to status and could be charged at a different rate to the representative APR. 

HSBC’s Advance Account: who is it good for?

HSBC’s £200 switch incentive, as one of the best in the market, offers universal appeal –  while the £25 interest-free overdraft buffer could be a useful safety net for account holders whose balance can fall to zero. However it’s worth noting that overdrafts beyond this threshold are charged at 39.9% AER (variable).

Anyone with savings to stash could also benefit from the linked 1.00% AER regular saver, although higher savings rates could be available elsewhere.

What are the alternatives?

Customers chasing a current account with a switching incentive have a few other options to choose from. 

First Direct pays new customers a welcome bonus of £175 for making a full switch, for example. Its 1st Account offers an interest-free overdraft of £250, subject to status and – like HSBC’s Advance – does not charge a monthly fee to maintain. 

Meanwhile, Nationwide building society is matching HSBC’s welcome offer, paying £200 to customers who switch to its free FlexAccount. 

This account costs £3 a month to maintain, but the fee is waived so long as £1,500 or more is deposited every month.

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