Home Money HSBC now says you need to be richer to get its dedicated current account – would you qualify?

HSBC now says you need to be richer to get its dedicated current account – would you qualify?

0 comments
Premium Benefits: HSBC has increased the eligibility requirements for its Premier account

HSBC’s wealthiest customers will now need to earn even more or have a large amount of savings as it makes radical changes to its Premier account.

The high street bank quietly announced changes to its Premier Pay account, which has strict eligibility requirements related to salary and savings/investments.

The account, which offers a range of benefits including family travel insurance, previously required customers to have an income of £75,000 a year or more, or have £50,000 of savings and investments with HSBC.

Last week, HSBC told its customers they will now need to earn at least £100,000 a year, or have £100,000 in savings and investments, or have an international account.

It said the changes were made for new customers starting in September 2024, but would be rolled out to all customers starting April 9, 2025.

Premium Benefits: HSBC has increased the eligibility requirements for its Premier account

An HSBC spokesperson said: ‘The HSBC Premier Account has received the biggest redesign in over a decade, adding a range of new features and capabilities to meet the complex wealth, financial planning and lifestyle needs of Premier customers.

“We have revised the eligibility criteria for the first time in six years to allow us to provide focused service and support to our customers, all without a monthly fee.”

For joint accounts, HSBC said “at least one party must have an individual annual income of at least £100,000”.

“When qualifying through savings or investments, these must be held with HSBC in the UK within 6 months of opening the account if you are new to HSBC, or before opening your account if you are an existing customer.”

That £100,000 level is above the Financial Services Compensation Scheme protection threshold of £85,000.

Andrew Hagger, founder of Money Comms, said: “HSBC reviews these limits from time to time and may have considered that the £500 interest-free overdraft and wide-ranging travel insurance, and specialist wealth advice benefits are sufficiently to justify higher income or savings requirements and it was no longer considered profitable to continue offering at the previous income/savings level.’

How do HSBC Premier’s benefits compare to other banks?

Premium bank accounts are designed for your bank’s wealthiest customers and typically offer generous benefits.

They also tend to have stricter eligibility requirements based on salary and/or savings and investments.

Following the changes made to HSBC’s premium account, is it worth keeping if you’re still eligible and how does it compare to other banks?

HSBC does not charge a monthly fee and with this you will receive family travel insurance worldwide up to age 69.

You’ll also get discounts on other products, such as mortgages, as well as fee-free cash transfers between HSBC accounts.

Barclays’ main product also doesn’t charge a monthly fee and you’ll need an annual income of at least £75,000 or have a total balance of at least £100,000 in savings or investments.

With this you will receive monthly Avios rewards, cashback rewards and exclusive mortgage options, including a higher annual overpayment allowance. It also offers customers improved savings rates.

Natwest also has strict eligibility requirements for its premium accounts. You will need a minimum income of £100,000 or £12,000 joint income. Similarly, you will need savings or investments of £100,000 and a minimum mortgage of £500,000 with Natwest.

Your Premier Select account does not charge a monthly fee and, in return, you will not have to pay transaction fees on payments outside the UK and you will not have to pay interest on the first £500 of an arranged overdraft.

Their Premier Reward account, which costs £2 a month, offers £9 a month in rewards for two direct debits, which must be at least £4.50 each. You’ll also receive £1 a month in rewards just for logging into the mobile app monthly and earn at least 1 per cent cash back at select retailers.

Your Premier Reward Black account, which costs £6 a month, will give you VIP access to events and top restaurants, as well as 25 per cent cashback on discounts on concerts and shows.

You’ll also receive worldwide family travel and telephone insurance, access to airport lounges, car breakdown cover in the UK and Europe and 24/7 emergency home service.

The Santander Select account is open to customers who earn at least £5,000 a month or keep £75,000 in their investments, savings or current account.

You’ll receive priority service, including 24/7 phone support, as well as access to life and travel insurance, among other benefits.

Has your HSBC Premier account been downgraded? editor@thisismoney.co.uk

SAVE MONEY, MAKE MONEY

Open a new Stocks and Shares Isa with £10k

£100 cashback Isa

Open a new Stocks and Shares Isa with £10k

£100 cashback Isa

Open a new Stocks and Shares Isa with £10k

Find out if you can save with our partner uSwitch

Fix energy bills

Find out if you can save with our partner uSwitch

Fix energy bills

Find out if you can save with our partner uSwitch

Earn 5.10% with our TiM Rate Increase

5.1% cash Isa

Earn 5.10% with our TiM Rate Increase

5.1% cash Isa

Earn 5.10% with our TiM Rate Increase

Cash Isa and money management

5.06% cash Isa

Cash Isa and money management

5.06% cash Isa

Cash Isa and money management

Up to £3,000 when you open a Sipp before January 31

money back

Up to £3,000 when you open a Sipp before January 31

money back

Up to £3,000 when you open a Sipp before January 31

Affiliate links: If you purchase a This is Money product you may earn a commission. These offers are chosen by our editorial team as we think they are worth highlighting. This does not affect our editorial independence. Terms and conditions apply to all offers.

Some links in this article may be affiliate links. If you click on them, we may earn a small commission. That helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.

You may also like