HSBC UK slashes financial advice fee to 1% for Premier customers – how does it compare to other £100k accounts?

HSBC UK is reducing its financial advice fee to 1% down from 2.75% as part of a promotion the bank plans to run until the end of the year for its more affluent Premier account customers.

In addition to the new lowered advice fee, HSBC UK also recently reduced the minimum asset threshold needed for customers to access its Premier investment management service, from £250,000 to down to £100,000.

With more people seeking financial advice than ever before, especially with rule changes around inheritance tax and pensions, this could offer more people the opportunity to get access to professional help.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Xian Chan, head of Premier Wealth at HSBC UK, said: “There are numerous scenarios where a customer might benefit from receiving financial advice, for example if they are planning for the long-term, have more sophisticated financial needs, or are facing a life milestone such as buying a home or preparing to retire.

“Providing cheaper access to financial advice is an important part of this, which we now offer at one of the most competitive rates on the market.”

Earlier this year, HSBC UK relaunched its Premier packaged account – which has no monthly fee – with a host of brand-new features, designed around the key themes of wealth, health, international and travel.

The health benefits include access to digital GP appointments, mental health support, plus two second opinions a year for you and your family.

Other perks include a £500 gift card if you switch banking to HSBC, access to its wealth centres, and money management tool on its app.

If you are however simply after the best deal on savings accounts, this may not be the place as HSBC is cutting the rate on its Premier savings account from 21 July, when the following rates will apply:

• Below £50,000 – 1.35% AER
• £50,000 to £100,000 – 1.45% AER
• Over £100,000 – 2% AER

We looked at some of HSBC Premier’s rival packaged accounts to compare the banking perks on offer to those with assets of at least £100,000.

How does HSBC Premier compare to other premium bank accounts?

Lloyds Premier account

One of the main competitors to the HSBC Premier account is the Lloyds Premier account.

Customers must pay in £5,000 each month or have £100,000 of savings or qualifying investments with Lloyds to be eligible for this account. The monthly fee of £15 will be refunded each month a customer meets the eligibility criteria.

Lloyds Premier which comes with a host of its own exclusive perks – which are more extensive than HSBC. 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

The other main competitor to HSBC in the Premier account arena is the Natwest Premier account. To join Natwest Premier you’ll need 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 Natest
• Minimum £500,000 mortgage with Natwest

There are three Premier accounts to choose from. The most basic is the Premier Select for no monthly fee, and which is eligible for Natwest’s £175 switch offer. But you don’t get much:

• No non-Sterling transaction fee when you make a payment outside the UK or in a foreign currency
• Arranged overdraft with £500 interest-free buffer available

Scale up and pay £2 per month and you still get the £175 cashback and 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 at least 1% at partner retailers when you use your NatWest debit card

Upgrade your membership to Premier Reward Black for £36 a month and in addition to the above, including the cashback, you also get other perks such as VIP access to events and restaurants, airport lunch access, car breakdown cover and mobile and phone insurance.

Natwest’s Premier offering is arguably less comprehensive than Lloyds, though more than HSBC. It is 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 does sweeten the deal.