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HSBC to charge for not going overdrawn

New HSBC Pay Monthly account costs £15 per month


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’.

Best overdrafts

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.

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