HSBC Bank Account

An overdraft lets you borrow money on your current account. An arranged overdraft is where we agree an overdraft limit with you. This can help in months when you have extra expenses. 

An unarranged overdraft is when you make a payment that takes your account over your arranged limit or overdrawn when you don’t have an arranged overdraft in place.

We’ll always consider an unarranged request and make the payment if we can. Unarranged overdrafts may incur higher fees and result in declined transactions. We report account activity, including overdraft usage, to credit reference agencies. An unarranged overdraft lasting more than 30 days could have a negative impact on your credit rating.

Overdrafts are not suitable for long-term borrowing and usually result in interest.

If you take an arranged overdraft, you can later ask us to increase, reduce or remove your limit at any time online, by phone or in a branch. 

If you end your overdraft you’ll have to repay any overdrawn amount and any interest owed. If you want to reduce your limit, you’ll first need to make sure you bring your borrowing down within the new limit.

To find out more, visit our overdrafts page where you can find out if you’re eligible and overdraft cost calculator.

When you open your account, you can apply for an arranged overdraft. The first £25 is interest free. Anything you borrow above that but within your arranged or unarranged overdraft limit will be charged interest at 39.9% EAR⁴.

If you go over your arranged overdraft limit, you’ll be charged interest at 39.9% EAR variable on any amount over the limit, up to a maximum of £20 a month. This is known as using an ‘unarranged overdraft’. 

We have some tools to help you avoid going over your arranged overdraft. As long as you've given us your mobile number, we'll send you a text alert if a payment is going to take you into an unarranged overdraft. We'll also send you a text alert if there isn’t enough money available in your account to make a payment.

Representative example: 0% EAR variable on the first £25, 39.9% EAR variable on anything above that, giving a representative rate of 38.9% APR⁵ variable (assumed arranged overdraft £1,200).

Overdrafts are subject to status.

We’ll send you overdraft text alerts if you’ve used or are due to use an arranged or unarranged overdraft on your account. This is to help you monitor your usage and let you know what action you can take to avoid interest.

If you don't provide your mobile number or let us know when you've changed it, we won't be able to send you these text alerts.

You can opt out of the arranged or unarranged texts at any time by phone, or by going into a branch.

If you pay for something using your HSBC Visa debit card while you’re outside the UK, you’ll need to pay a ‘non-sterling transaction fee’ of 2.75%. So, for example, if you spent £100, you'd be charged a fee of £2.75.

If you withdraw money from an ATM, you’ll also need to pay a ‘cash fee’ of 2% (minimum £1.75, maximum £5) as well as the non-sterling transaction fee. So if you took out £100, you’d be charged a total of £4.75.

Any transactions you make will be converted into pound sterling (unless you choose to pay in local currency). To make sure your exchange rate is as competitive as possible, you’ll pay the exchange rate set by Visa. 

More about using your card abroad

1. Our telephone, online and mobile banking services are open 24 hours a day subject to scheduled maintenance periods. To help us offer the best service, we may monitor and/or record your calls with us. Back to 'At a glance'

2. Our mobile banking app is currently available on iPhones and iPads with an operating system of iOS 10.3 or higher and Android devices with an operating system of 5.0 or higher. Back to 'Easy mobile banking'

3. The fixed rate of 2.75% AER/gross over 12 months is available to HSBC Bank Account customers who open a new Regular Saver account. Save between £25 and £250 per month by standing order from your HSBC Bank Account for a fixed term of 12 months. If you do not save £250 in any given month you can carry over any unused subscription to following months. Interest is calculated on the daily balance on your Regular Saver and we’ll pay this into your Regular Saver on the anniversary of your account being opened. For example, if you saved £250 every month for 12 months a total of £3000 will be paid in to your account during the 12 month term. At 2.75% you would earn approximately £44 interest (gross). Partial withdrawals are not allowed during the 12 month term. If you close your Regular Saver before the anniversary, we’ll pay interest at the same rate as we would apply to an equivalent amount held in our Flexible Saver account. You can only hold one Regular Saver account at any time. AER stands for Annual Equivalent Rate. This shows what the gross rate would be if interest was paid and compounded each year. All credit interest will be paid gross. Gross is the rate of interest if interest were paid and not compounded each year. Back to 'Overdraft charges'

4. EAR (Effective Annual Rate) takes account of the interest rate, the compounding of interest and how often interest is charged. It doesn’t include any other fees or charges.

5. APR (Annual Percentage Rate) is the rate at which someone who is borrowing money is charged, calculated over a period of 12 months. It takes into account not just the interest, but also any other charges that may have to be paid and any interest-free amount.