M&S Bank completes official transfer to HSBC – here’s what it means for savers and borrowers

M&S Bank will continue as a trading name with the brand remaining. Here's what the transfer means for your savings, credit cards and more.

M&S Bank saver? Your money's now with HSBC UK – and your safe savings protection has changed

If you're an M&S saver, here are the key need-to-knows:

1. M&S Bank savings and cash ISAs are now held with HSBC UK. M&S Bank says you can continue to access your accounts through the same channels. Your account number, payment details and any Direct Debits you've set up will also stay the same.

2. Interest rates and charges won't change as a result of the transfer. That said, it's worth checking whether you could earn more elsewhere. See our Top savings and Top cash ISAs guides for the current best buys.

3. If you've savings with M&S Bank AND HSBC AND/OR First Direct, they now share the Financial Services Compensation Scheme (FSCS) protection. So, if you've over £120,000 saved across two or all three brands, you may want to move your money elsewhere – as you now only get a combined £120,000 limit across them. See How to save in 100% safety. You can also use our tool to Check which banks are linked.

Got fixed savings with M&S Bank? The move may give you extra flexibility

You've got until, and including, 31 July 2026 to:

• Transfer or close a fixed ISA penalty-free. If you fixed some time ago, it's worth checking your rate to see if you can beat it elsewhere, as the move means you won't be charged the usual early withdrawal charges. Of course, if you close an ISA rather than transferring it, the money LOSES its tax-free status.

• Transfer or close any fixed rate savings above the FSCS limit – and claim compensation for lost interest. Here, you can withdraw an amount equal to the protection you've lost from an M&S Bank, HSBC or First Direct account without early withdrawal charges or interest penalties. After 31 July, you'll face the usual charges.
  
  In this scenario, if you're on a fixed or bonus rate and can't get the same rate elsewhere for the rest of the term, you may also be able to claim compensation for lost interest. Contact your bank (M&S Bank, HSBC or First Direct) in this instance.
  
  You cannot withdraw money from non-ISA fixed or notice accounts in full without penalty.

Got other M&S Bank products? You can continue using them as normal

If you have an M&S Bank credit card, personal loan or insurance policy you can keep using it as normal. The legal provider has changed to HSBC UK, but M&S Bank says most day-to-day things will stay the same:

• Interest rates and charges won't change because of the transfer.

• Your account number will stay the same and you'll continue to manage your account in the same way.

• Payment details and bank accounts will stay the same including any Direct Debits you've set up.

• Credit card customers can continue using their card and earning M&S Rewards points.

• You'll continue to contact M&S Bank in the same way as before.

• Existing insurance cover and claims processes will continue until the policy end date. After this, you'll need to find new cover as M&S Bank is no longer offering renewals. It stopped offering insurance policies to new customers prior to the transfer.

Of course, this could be a good opportunity to check you're getting the best deal. Check our guides on the best bank accounts, cutting existing loan costs, shifting credit card debt to 0% and getting the best insurance deals. Remember to check for any exit fees or penalties before switching.

M&S Bank customer? How you access services won't change

You can continue to use mobile, online and telephone servicing as normal. M&S Bank doesn't offer personal current accounts, so it doesn't offer face-to-face account services at HSBC branches. However, M&S credit card customers can make a payment to their credit card at an HSBC branch.

First Direct customers can continue to use HSBC branches for basic banking needs, such as paying in cheques, depositing cash and withdrawing money.