HSBC UK Reduces Financial Guidance Fee to 1% for Premier Clients - How Does It Measure Up Against Other £100k Accounts?
** freshening up the finance game **
HSBC UK is shaking things up by slashing its financial advice fee from a hefty 2.75% to a more modest 1% - and they're planning to keep this promotional offer running until the end of the year for their premium account customers. This move, targeting their more affluent Premier account holders, aims to attract what they call the "mass affluent."
To sweeten the deal even further, HSBC UK has also trimmed the minimum asset threshold needed for customers to access its Premier investment management service. The exact figure isn't clear yet, but it's dropped significantly, from a hefty £250,000 to a more entry-level £100,000.
With financial matters increasingly on people's minds, particularly with changes in inheritance tax and pensions, this might provide more folks with the opportunity to get a leg up with professional advice.
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Xian Chan, head of Premier Wealth at HSBC UK, shared, "There are numerous scenarios where a customer might benefit from receiving financial advice - like planning for the long haul, having complex financial needs, or facing life milestones such as buying a home or preparing for retirement. Offering cheaper access to financial advice is an essential part of this, and we make it available at one of the most competitive rates on the market."
Earlier this year, HSBC UK revamped its Premier "packaged account" - no monthly fee required - with a slew of new features, centered around popular themes like wealth, health, international travels, and more.
The health benefits include easy access to virtual GP appointments, mental health support, and even two annual second opinions for you and your family.
Other bonuses include a £500 gift card to sweeten the switch, access to HSBC's wealth centers, and a money management tool on their app.
However, if you're primarily in search of the best savings accounts, this may not be your go-to choice. Starting from July 21st, HSBC will trim the rate on its Premier savings account:
- Below £50,000 - 1.35% AER
- £50,000 to £100,000 - 1.45% AER
- Over £100,000 - 2% AER
Comparing HSBC Premier to other premium bank accounts:
How does HSBC Premier stack up against the competition?
Lloyds Premier account
One significant competitor to HSBC's Premier account is Lloyds Premier account. To snag this account, you'll need to either stash away £5,000 each month or have £100,000 lodged in savings or qualifying investments with Lloyds. The £15 monthly fee is refunded each month you meet the eligibility requirements.
Lloyds Premier comes packed with its own exclusive perks, which are more extensive than HSBC's. These include Bupa Family GP and Wellbeing subscription service, 1% cashback on your spending (up to £10), competitive mortgage rates, savings bonuses, and access to financial coaches.
Natwest Premier account
Another main competitor in the premier account arena is Natwest Premier. To be a part of Natwest Premier, you'll require one or more of the following:
- Minimum of £100,000 sole income or £120,000 joint income paid into your NatWest account
- Minimum of £100,000 savings or investments held with Natwest
- Minimum £500,000 mortgage with Natwest
Natwest offers three Premier accounts to choose from. The most basic, the Premier Select, doesn't charge a monthly fee, but it doesn't offer much except for:
- No foreign transaction fee when you make a payment outside the UK or in a foreign currency
- An arranged overdraft with a £500 interest-free buffer available
Bump up to a £2/month fee, and you get the same things as the basic account, plus:
- £9 a month back in rewards for two direct debits - they need to be at least £4.50 each
- £1 a month in rewards just for logging into our mobile app monthly
- Earn 1% at partner retailers when you use your NatWest debit card
level up to the Premier Reward Black for £36 a month and, alongside the rewards and cashback, you also get perks like VIP access to events and restaurants, airport lunch access, car breakdown cover, and mobile and phone insurance.
Natwest’s Premier offerings might be less comprehensive than Lloyds, but it's more extensive than HSBC. It's also the most expensive if you go for the Reward Black account – but the £10 monthly cashback and the one-off £175 account switching cashback should help sweeten the deal.
- Amidst the efforts to improve personal-finance matters, HSBC UK's decision to lower the financial advice fee and the minimum asset threshold for its Premier investment management service could potentially provide more individuals with access to professional advice, especially those planning for long-term goals, facing complex financial needs, or preparing for life milestones such as retirement or buying a home.
- As HSBC UK adjusts its Premier savings account rates, starting from July 21st, it's essential to compare these changes with the offerings of other premium bank accounts like Lloyds Premier and Natwest Premier, as selecting the best savings account suitable for one's personal-finance needs and business ventures remains crucial.
