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Coronavirus: overdraft support

We’ve reviewed our overdrafts and introduced support measures to help customers manage their finances in the coming months. 

This includes temporarily not charging interest on the first £500 of arranged overdraft borrowing on some accounts and temporarily charging less interest on overdrawn balances above interest-free amounts.

How does this work?

From 9 April, for 3 months, we will not charge interest on the first £500 of arranged overdraft borrowing for customers with overdrafts on the following HSBC UK accounts:

  • Bank Account 
  • Bank Account Pay Monthly
  • Current Account
  • Advance Bank Account

This £500 interest-free amount is automatically activated if you have an existing overdraft, so there’s no need to call us.

This is a temporary measure, designed to help those who are in financial difficulty because of coronavirus. We encourage you to use your arranged overdraft only if necessary. You can use our coronavirus overdraft calculator to work out overdraft charges until 9 July 2020.

We’re not automatically increasing existing overdraft limits, or adding a limit if you don’t already have an arranged overdraft on your account. If your arranged overdraft limit is less than £500, the whole arranged limit will temporarily be interest-free.

Overdraft limit increase:

If you want to increase your existing arranged overdraft limit, you don’t need to call us – you can log on and manage your current arranged overdraft limit.

Apply for an overdraft:

If you’re thinking about applying for an arranged overdraft, you can check whether you’re likely to be approved by using our eligibility checker. This won’t affect your credit file. 

These temporary measures won’t apply if you have an account with a negotiated rate (where we’ve separately agreed a non-standard rate for your overdraft).

How much interest will you be charged?

During this period, you’ll be charged a temporary rate of 19.9% EAR (variable) for any amount above £500 on your arranged overdraft balance.

The normal rate of interest for arranged overdraft borrowing is 39.9% EAR (variable). You can use our coronavirus overdraft calculator to work out overdraft charges until 9 July 2020.

What are the changes on other accounts?

For HSBC Graduate Bank Accounts, we’ll temporarily charge interest at 19.9% EAR (variable) for any arranged overdraft balances above the applicable interest-free amount. 

If you have an HSBC Student Account, we’ll still charge 0% EAR (variable).

For HSBC Premier Accounts, we’ll temporarily charge 11.9% EAR (variable) for any arranged overdraft balances above £500. For HSBC Jade Accounts, we’ll temporarily charge 9.9% EAR (variable) for any arranged overdraft balances above £1,000. 

If you have an account with a negotiated rate (where we have agreed a non-standard rate for your overdraft), these temporary interest rates will not apply to you.

What happens when the 3-month period ends?

Your account and overdraft contractual terms are not affected by these temporary measures and will remain the same. We’ll keep these temporary measures under review and update you before we make any changes to this interest waiver.

When we withdraw this temporary measure in the future, we’ll start charging the normal 39.9% EAR (variable) on all amounts borrowed over our standard interest-free amounts detailed below. 

How do our overdrafts compare?

You can compare our overdrafts with other ways of borrowing by looking at the APR. APR is the cost of borrowing over a year and lets you compare the costs with other credit products.

Standard interest-free overdraft amounts:
Account Standard interest-free overdraft amount Representative examples (based on an assumed arranged overdraft of £1,200)

HSBC Bank Account

HSBC Bank Account Pay Monthly

HSBC Current Account (offsale)

HSBC Advance Bank Account

£25

Representative rate of 38.9% APR variable

 

Based upon: 0% EAR variable on the first £25, 39.9% EAR variable on anything above that.

HSBC Graduate Account (year one)
£1,500

Representative rate of 0% APR variable.

 

Based upon: 0% on the first £1,500, 39.9% EAR variable on anything above that.

HSBC Graduate Account (year two)
£1,000

Representative rate of 5.8% APR variable.

 

Based upon: 0% on the first £1,000, 39.9% EAR variable on anything above that.

HSBC Premier Account £500

Representative rate of 21.8% APR variable.

 

Based upon: 0% EAR variable on the first £500, 39.9% EAR variable on anything above that.

HSBC Jade Account £1,000

Representative rate of 5.8% APR variable.

 

Based upon: 0% on the first £1,000, 39.9% EAR variable on anything above that.

Standard interest-free overdraft amounts:
Account

HSBC Bank Account

HSBC Bank Account Pay Monthly

HSBC Current Account (offsale)

HSBC Advance Bank Account

Standard interest-free overdraft amount £25
Representative examples (based on an assumed arranged overdraft of £1,200)

Representative rate of 38.9% APR variable

 

Based upon: 0% EAR variable on the first £25, 39.9% EAR variable on anything above that.

Account HSBC Graduate Account (year one)
Standard interest-free overdraft amount £1,500
Representative examples (based on an assumed arranged overdraft of £1,200)

Representative rate of 0% APR variable.

 

Based upon: 0% on the first £1,500, 39.9% EAR variable on anything above that.

Account HSBC Graduate Account (year two)
Standard interest-free overdraft amount £1,000
Representative examples (based on an assumed arranged overdraft of £1,200)

Representative rate of 5.8% APR variable.

 

Based upon: 0% on the first £1,000, 39.9% EAR variable on anything above that.

Account HSBC Premier Account
Standard interest-free overdraft amount £500
Representative examples (based on an assumed arranged overdraft of £1,200)

Representative rate of 21.8% APR variable.

 

Based upon: 0% EAR variable on the first £500, 39.9% EAR variable on anything above that.

Account HSBC Jade Account
Standard interest-free overdraft amount £1,000
Representative examples (based on an assumed arranged overdraft of £1,200)

Representative rate of 5.8% APR variable.

 

Based upon: 0% on the first £1,000, 39.9% EAR variable on anything above that.

To find out more, see our frequently asked questions.

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