The MoneySaving Forum: join to chat & swap tips with other MoneySavers. Learn how in the Forum Introduction Guide

HSBC axes free banking for 100,000s of small businesses

Michael Connolly
MSE News Reporter
29 August 2013

HSBC is ending fee-free banking for hundreds of thousands of small business customers from September.

Its Business Direct account, which currently comes with no monthly fee, will be renamed the Electronic Banking Tariff, and will cost £5.50 per month.

Related MSE Guides

Small Biz MoneySaving

Banking, gas & elec, phones & web

Best Bank Accounts

Up to 5% interest or £125 bonus

Bank accounts with benefits

You could get £600 insurance for £120

The Small Business Tariff monthly fee will now rise from £5 to £5.50 a month (see our Small Business Banking guide for alternatives).

HSBC has 700,000 customers with those two accounts who will face higher, or new, monthly fees. It doesn't break down how many use each account.

Other fees for services such as withdrawing and depositing money will also change; some will rise, some will fall. Full details are on the HSBC website.

Charity and Community Account customers with a turnover under £100,000 are not hit by price changes and will continue to receive free banking.

Last year, Santander planned to end fee-free business banking for 230,000 customers but performed a U-turn following pressure.

An HSBC spokesman says: "After carrying out a product review, we have written to all business banking customers to make them aware of changes we are making to our Business Direct and Small Business Tariff accounts.

"This will provide customers with clearer, more transparent pricing, making it easier for them to manage their costs."


Discuss this MSE news story: HSBC small business banking

Cheap Travel Money

Find the best online rate for holiday cash with MSE's TravelMoneyMax.

Find the best online rate for your holiday cash with MoneySavingExpert's TravelMoneyMax.