HSBC has launched a new current account which charges a hefty £15 a month for the privilege of not going over your overdraft limit.
The Bank Account Pay Monthly, which will be available to new and existing HSBC current account customers from the 26th April 2010, features a strict overdraft limit which cannot be exceeded unless the increased limit has been agreed beforehand. The account has no unauthorised overdraft charges or returned item fees, but will cost £180 a year to run.
Most current accounts are fee-free as long as you are in credit and offer more flexibility than the Pay Monthly account, which is likely to be an expensive choice.
Which? spokesperson Doug Taylor said: ‘We like the idea of consumers being able to opt out of unauthorised overdraft facilities, but the charge for this seems high. We can’t see it being attractive to most customers and we will be asking HSBC how they arrived at the figure of £180 per year’.
If you regularly go overdrawn, switch to one of our Best Rate current accounts. These offer the best deals on authorised overdrafts and could save you hundreds of pounds.
Which? Money when you need it
You can follow @WhichMoney on Twitter to keep up-to-date with our Best Rates and Recommended Provider product and service reviews.
Sign up for the latest money news, best rates and recommended providers in your newsletter every Friday.
Or for money-saving tips, and news of how what’s going on in the world of finance affects you, join Melanie Dowding and James Daley for the Which? Money weekly money podcast
For daily consumer news, subscribe to the Which? news RSS feed here. And to find out how we work for you on money issues, visit our personal finance campaigns pages.