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HSBC To Stop Free Banking for Charities & Music Groups in UK - Any Suggestions for Good Replacements ?

rhysonsax

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I have been the treasurer for our local Big Band (Jazz Orchestra) since 2003 and set up the original bank account with HSBC at that time. As with many UK bank accounts that stay in credit, we are not charged for any standard banking activity like statements, cashing cheques etc.

But HSBC have just changed their policy and announced that from November this year charities, community groups and sports clubs will have to pay charges of around £60 per year. More information on the story is here.

Has anyone on the forum got experience of UK banks or other institutions that still provide free banking for community groups ? And would you recommend them ?

Thanks in advance

Rhys
 

Jeanette

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Unfortunately I think it is a trend. Coop used to give the hospice free banking but that stopped. I see they are listed here for smaller charities.

Best charity and community bank accounts in 2020

I like RBS, having used them personally and for the hospices. Always been able to speak to someone if needed but that was a bigger business.

Jx
 

Pete Thomas

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We use the Co-op, didn't realse they'd started charging though!
 

Tenor Viol

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This all started with Midland Bank as it then was (Hong Kong & Shanghai Banking Corporation as it is now - funny you rarely see HSBC spelt out in full...) who in 1984 decided to grab a chunk of the market by offering free banking to current account customers in credit. At the time I was on a two week attachment to a branch to learn the retail bookkeeping system prior to us switching over to it in a few months time. The office manager said to me that this was a short-sighted decision not in the long-term interests of customers.

By making it free to some, someone else must pay - banks cost a lot of money to run, e.g. the enormous IT infrastructures behind the various payments engines. The direct consequence of that was increased cost of overdrafts, much larger margins on loans, and increased charges on those who do pay such as small businesses.

The daft thing is most small charities/clubs are not big users.

I can remember back in the 1970s though that the society I was in back then paid some bank charges.
 

Targa

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This all started with Midland Bank as it then was (Hong Kong & Shanghai Banking Corporation as it is now - funny you rarely see HSBC spelt out in full...)
That is probably because it isn't. It is HSBC Holdings Plc, changed from the 'full name' in 1991.
 

Tenor Viol

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That is probably because it isn't. It is HSBC Holdings Plc, changed from the 'full name' in 1991.
I know. But it was done to make it more marketable in the UK as a high street brand (yes, it's a British bank and always was, but it's focus used to be trade in Asia/Pacific). When I worked in import/export shipping side of banking rather than IT it was pre 1991 so I only knew it under its full name
 

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