HSBC will launch a current account limiting
overdrafts to £50 ($77) thought to be the first account of its kind
in the UK.
The plan comes after the UK’s Office of Fair
Trading recommended that customers should be given the right to
refuse unauthorised overdrafts.
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HSBC said the account, Bank Account Pay
Monthly, will be available from 26 April and features a “strict”
overdraft limit that cannot be exceeded unless the bank has agreed
a higher limit with the account holder beforehand.
The account will cost customers £15 per month,
although they will not run the risk of incurring further fees for
breaching their overdraft limit.
The bank said the £50 buffer on the account
will mean short term emergency payments can be made and small
miscalculations are not “an inconvenience” to customers.
Basic bank accounts already prevent customers
from going overdrawn, but they do not offer the same transactional
facilities as standard current accounts.
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