HSBC Business Banking - £5.50 per month!

[d000hg]

Fee-free banking is hardly universal, in many countries monthly fees are the norm and even in the UK many personal current accounts charge a monthly fee and most "proper" business accounts incur charges for all transactions. So I'd say £5.50 was pretty good value in the grand scheme of things.

That is all well and good but it doesn't make AtW's argument that a bank makes its money through account fees any less laughable. These are just the icing on the cake for the banks...

[AtW]

That is all well and good but it doesn't make AtW's argument that a bank makes its money through account fees any less laughable. These are just the icing on the cake for the banks...

10 mln accounts paying £5.50 per month is £660 mln annual net profit if before those accounts were "free".

What's real problem is %-tage banks take from credit card payments - totally crazy 2-3%.

[d000hg]

So you reckon HSBC has 10 million small business accounts in a country of 47 million adults, with at least 5 other competing banks?

Also considering HSBC has UK profit of around £18bn a year, even your crazy figures prove me right - that would increase profit about 3%. A tiny proportion of their profits - account fees are not where they make money.

[doodab]

Also considering HSBC has UK profit of around £18bn a year, even your crazy figures prove me right - that would increase profit about 3%. A tiny proportion of their profits - account fees are not where they make money.

According to their annual report in the UK in 2012 they made $343 million from retail banking and $832 million from commercial banking.

Fee income of one kind or another is around 1/3rd of their income in both sectors and comes to a bit over $4 billion a year, so a few hundred million is well worth having.

[AtW]

So you reckon HSBC has 10 million small business accounts in a country of 47 million adults, with at least 5 other competing banks?

Charge should not just apply to business accounts - in many countries any bank account isn't free.

Having said that if I was bank manager I'd waive such small charge for those who keep decent balance in account.

[ankreeti]

Charges on HSBC Business Direct Account

Unless i have missed something, as per following link, if you are a internet/Telephone only user, you do not pay monthly fee.

Business Direct Rates and Charges: Starting a Business: HSBC UK

[blacjac]

Yes, you have missed something...

[amcdonald]

Paying interest is only uncommon in the Islamic world.


Banks don't make their profits from fees. They make it by lending money. Banks WANT you to put money in your account otherwise they can't lend it to someone else.

Even they still really pay interest, they just call it something different so as not to offend anyone

[d000hg]

I've been looking seriously at ditching HSBC and returning to my old, free, Santander account. However since I pay ~£30 a month on fees for international transfers, £5.50 doesn't seem a big deal.