I have had a student account with HSBC for seven years (I know what you're thinking, I'm the classic work dodger with too many degrees), and at first I had no problems with them. Recently however they have changed the terms and conditions of their Graduate account, which will directly and adversely affect anyone with a HSBC Student account. HSBC were fine at first, but they have started to consistently dissapoint me. When I signed up for the student account it was clearly stated in all their literature that when you graduate, your Student account would automatically switch to a Graduate account, and the terms and conditions of the Graduate account at that time stated that the account would retain the interest free overdraft that was part of the Student account for a year after graduation, and that the interest free limit would gradually decrease over 3 years, so basically giving you 3 years after graduation to pay back your overdraft. HSBC have now changed the terms and conditions of their Graduate account, which affects anyone who currently has a Student account with them, or any new accounts which are opened. They have pulled the interest free overdraft on the Graduate account, so anyone who graduates from July 2007 with a HSBC Student account (which will automatically be transferred to a Graduate account) will either have to pay all their overdraft back (I think they give you a 2 month period in which to do this before they start charging interest, aren't they generous!), pay interest on the overdraft of 9.9% per year or open a Graduate Plus account, which retains the interest free overdraft as per the previous terms but for which you must pay a fee of £9.95 a month.
Understandably I am very unhappy about this, as I (perhaps naively) did not realise that they could change the terms and conditions of a bank account just like that. To make matters worse they have not even informed me of this themselves, I read it in a national newspaper, and they have only just started sending letters out to people with a Student account who graduate this year to let them know how they will be affected. I suppose they won't let people who have at least a year left on their course know of this change yet, as that would give any disgruntled customers time to switch to another student account, which is exactly what I will now do. HSBC don't even offer the best value student accounts, you can get higher overdraft limits elsewhere, and their customer service is shocking. Most other banks who offer student accounts will allow a reasonable amount of time, usually at least a year after graduation, before they start charging interest on overdrafts, in recognition of the fact that it takes a little time to get on your feet after you have finished university, and graduates can be lucrative customers, who will usually stick with the same bank that they had a student account with. I have always managed my account extremely well, and I would have thought that I was a valued customer, but no, to HSBC I'm just a number. HSBC deserve to lose all their potentially high earning customers in droves.
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I've just graduated, and recently got their letter. Have to say was pretty disgusted. Fortunately my balance is positive, but I suspect many students will have some hefty charges forced on them. I intend to go to Natwest and get a graduate account there-they offer £2000 overdraft interst free. Good review.
Jul 27th, 2007
(Jul 28th, 2007)
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