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Our Verdict
HSBC’s Advance Account comes with an interest-free overdraft up to £25, discounts from retail partners and access to a regular savings account — with no monthly fee.
Representative Example
The representative APR example gives you an estimate of how much it might cost if you borrowed a certain amount of money. This helps you compare products and provides a guide on how much carrying a balance could cost. Your personal offer may vary from the representative APR example.
For an arranged overdraft of £1,200, the first £25 will be charged at 0% variable EAR (Equivalent Annual Rate). EAR is 39.9% variable thereafter, giving a representative APR 38.9% (variable). Subject to financial status.
Pros
- Interest-free overdraft up to £25
- No monthly fee
- Access HSBC Regular Saver Account
Cons
- Overdraft charged at 39.90% AER above £25
- Overdraft facility subject to status
5.0
Our star ratings are based on a range of criteria and are determined solely by our editorial team.
Key perks
Access to Regular Saver account
Monthly fee
£0
Overdraft
First £25 interest free
Table of Contents
- Key features
- Who is eligible?
- Other factors to consider
- HSBC’s Advance Account: who is it good for?
- What are the alternatives?
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Key features
- Access to linked Regular Saver account paying 5.00% AER
- Interest-free overdraft of £25 (subject to status), arranged overdrafts cost 39.9% AER
- Online and mobile banking available
Who is eligible?
To be eligible for an HSBC Advance account, customers must be aged 18 or over. Contact details, ID and proof of address must also be provided so the bank can carry out a credit check.
Although HSBC accepts applications from outside the UK, non-UK residents may not be able to access all account features.
The Advance Account can be held solely or jointly.
Other factors to consider
HSBC Advance Account holders can access the bank’s Regular Saver Account, which is currently paying 5.00% AER for 12 months on balances up to £3,000.
Customers can also sign up for the home&Away scheme, which offers discounts when using the card to spend with partners including Costa Coffee and ASOS.
Eligible account holders receive an interest-free overdraft up to £25. Above this threshold, arranged overdrafts are charged at 39.9% EAR, giving a representative APR of 38.9% (variable).
As with any credit facility, overdrafts are offered subject to status and could be charged at a different rate to the representative APR.
HSBC’s Advance Account: who is it good for?
HSBC’s £25 interest-free overdraft buffer could be a useful safety net for account holders whose balance can fall to zero. However it’s worth noting that overdrafts beyond this threshold are charged at 39.9% AER (variable).
Anyone with savings to stash could also benefit from the linked 5.00% AER regular saver, although higher savings rates could be available elsewhere.
Featured Partner Offer
1
Starling Bank
24/7 UK-based customer support
Instant payment notifications/ Smart budgeting tools
1
Starling Bank
On Starling Bank's Website
Featured Partner
2
first direct
£175 bonus to switch to 1st Account
Award-winning customer service
2
first direct
On first direct’s Website
What are the alternatives?
Since HSBC is not currently offering a switch incentive, customers chasing a welcome bonus may want to consider other options.
First Direct pays new customers a welcome bonus of £175 for making a full switch, for example. Its 1st Account offers an interest-free overdraft of £250, subject to status.
This account costs £3 a month to maintain, but the fee is waived so long as £1,500 or more is deposited every month.
Bethany GarnerForbes Staff
I’ve been writing for a broad array of online publications for four years, always aiming to make important insights accessible. It’s my goal to ensure that as many people as possible can make informed decisions about their money, and get the most out of their finances with the least amount of stress.
