$200 fee for UK HSBC Account from US now

Yesterday I called the international line of US HSBC to ask for the applications and process of opening a UK HSBC account as we expect to arrive in late February 2009. Here's the upshot of the conversation after "Mike" verified our existing US HSBC accounts (they have now been opened just over 6 months):

HSBC: "We'll be happy to take care of that for you and I can email you the forms. You'll complete them, sign them and return them to us along with certified copies of your passports. Please be aware there will be a $200 fee for opening your UK HSBC account."

ME:  "Since I can't be sure when the visas will be issued, can UK HSBC simply hold the new account cheque/passboks, etc. in London until we arrive? I don't want the documents coming here to Texas if we're already in the UK."

HSBC:  "Well, it should take no more than 4 weeks for the accounts to be opened, so that's plenty of time before you leave, so the documents will be returned to you in the US. Then you can take it into a UK branch and have the account changed to your new UK address." (He seems resistant to holding the documents in the UK until our arrival, even though past postings here and their own website seem amenable to that.)
 
ME: "About this $200. Is this a required initial deposit?"

HSBC:  "No, this is a nonrefundable fee in addition to any deposit."

ME: "I've never heard of this fee before."

HSBC: "I'll email you the documents for your perusal."

Emails arrives with 4 pdf attachments:
1) International Application XXXXXX (<== tracking number, I suppose)
2) Premier Terms & Conditions Mandatory Reading
3) Non-Premier Terms & Conditions Mandatory Reading
4) Non-Premier Credit Card Application and T & Cs

*****
Dear Customer,
 
Reference: International Application ID no: XXXXXX
 
Thank you for your recent enquiry.
 
We attach an application for our Premier Service for your completion.

As a Premier customer, you may also contact your local International Banking Centre for assistance on account opening, there is no charge for this service (emphasis is mine).

Alternatively, please take the completed application and the supporting documents to your local HSBC branch or International Banking Centre and our staff will arrange for your UK Premier bank account to be opened.

If you are not a Premier customer, please contact your local International Banking Centre for assistance on account opening (refer to www.HSBC.com for contact details). Please note that this service usually incurs a fee. (emphasis is mine.)

This form is not encrypted. To protect your information, it is important that you do not email the completed application form.

If you require any assistance completing this form, please contact the number below*.
   
HSBC Bank Plc International Services
Manchester DSC
Regents Place
Regent Road
Salford
Manchester
M5 4BT

TEL No: 08456 076 706 International: +44 20 7991 7278
 
HSBC Bank plc
Registered Office: 8 Canada Square, London E14 5HQ
Registered in England - Number 14259
Authorised and regulated by the Financial Services Authority

Assisted account opening by the International Banking Centre is subject to local regulations 

*To ensure that we carry out your instructions accurately, to help us to continually improve our services, and in the interest of security we may monitor and/or record your calls with us.
   
To use this PDF application form you will need Windows XP or 2000 and the free Adobe Reader, from version 7.05 onwards. You can download the free Adobe Reader by clicking on the link below
******

Looks like what they're saying is, if you're a Premier customer, either you must maintain $100,000+ in your account, or pay a $50 monthly fee. In either case, there is no $200 fee to open the account from the US.

OR,

If you're not a Premier customer, you must pay a $200 to open a UK account from the US.

I'm not sure if this applies only because I'd be opening the account from the US, or if the same fee would apply if I open it once I'm in the UK. But it seems untenable that a bank would charge me to open an account locally once I'm in the UK (and such an extortionate amount to boot!)

I tried to call back a couple of hours later to get another CSR on the phone, but alas, Mike answered again. I really wanted to have this set up before we arrive, but I'm not willing to be gouged like this!

DH opened an account with HSBC after he arrived here with no charge.  Might be worth waiting until you get here?

Meh. I'd wait. I just opened my first UK bank account yesterday (Lloyd's) and they estimate it's only going to take a week to get my checkbook and debit card to me. For a week, you could pay cash.

All the banks will try to push their 'premier' account on you.

The fact remains that a standard bank account will be free. Recently, everytime I deal with the bank, I get the sales pitch about premier accounts. I think they are a complete waste (for me anyway--the services they offer are just not worth the charge). Just keep insisting that you would like a standard, free current account. This may mean you need to wait 'til you get here. I guess the question is is $200 worth it to save some hassle when you arrive? The answer might be yes, if you are short on time, and need to have access to a UK bank account.

I'd wait too.  We actually wound up waiting a lot longer than we needed to after we arrived (we waited until we had proof of address since most banks ask for it), but we went to Lloyd's on Wednesday and opened a joint account with just our passports.  We got our cards in the mail today.  We've just been withdrawing cash from Barclay's (because we used Bank of America in the States) for money.

All good advice. Thanks. Just to point out though for others thinking of going the US=>HSBC=>UK route as many others have in the past: the new $200 fee is for opening any account, Premier or otherwise, before arriving in the UK. This is new and I suspect only recently added during the past month or so as banks try to think up ways to bleed us for more money during the financial crisis.

I just wanted the peace of mind of already having a UK account so as to smooth the process of flat renting. We'll be in temporary quarters until then.

But I'm not willing to pay $200 for the "privilege". So looks like we'll wait until we arrive. Is using a hotel or B&B address okay? Don't know how we're going to prove that, though.

If your bank requires proof of address, it'd need to be your home address.  See this post for bank-specific requirements: http://talk.uk-yankee.com/index.php?topic=22395.0

All good advice. Thanks. Just to point out though for others thinking of going the US=>HSBC=>UK route as many others have in the past: the new $200 fee is for opening any account, Premier or otherwise, before arriving in the UK. This is new and I suspect only recently added during the past month or so as banks try to think up ways to bleed us for more money during the financial crisis.

I just wanted the peace of mind of already having a UK account so as to smooth the process of flat renting. We'll be in temporary quarters until then.

But I'm not willing to pay $200 for the "privilege". So looks like we'll wait until we arrive. Is using a hotel or B&B address okay? Don't know how we're going to prove that, though.

When you get here just go to a couple of banks. When I opened my Barclays account, they accepted my US address (on my license and a bank statement) The manager said something about being able to open an account right off the plane. But this was over three years ago. However, it's possible you might find something that wont require a proof of UK address.

Thanks Mort and Broken. That's what I think I'm going to do. 

ETA: Just found Barclays requirement of ID to open account. We just need our US passports and an original (no more than 3 months old) US bank statement.

Here's their page:

http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?task=popup1group&value=7551&target=_blank&site=pfs

Does paying this $200 fee mean that you can establish an account while still in the US and not have to prove your address when you get to the UK?  That seems to be a problem for a lot of people (ie. trying to rent a house and not having a bank account).  We will be staying with relatives, our names aren't on any bills and will need to rent a house right away.  I actually went into the HSBC bank today in Virginia and they told me about the $200 fee but I didn't know to ask about proving an address.

Will paying this fee and establishing a bank account a few months before we leave help with establishing credit, getting a UK credit card, etc?

Susanjc,

As I understand, by paying the $200 fee, your HSBC account statements, cheque book, etc. will have your US address on it, but will establish that you have a UK bank account. Having a UK bank account upon arrival is precisely what I wanted (no matter the US address), just as you, as we too will need to rent right away (we haven't any relatives to stay with, even temporarily).

This will satisfy a landlord's or estate agency's requirement, as any deposit, etc will be drawn on a local bank. Then once you've rented, you only need to go into your HSBC UK local branch and change the address to your UK one. Only proof of identification at that point.

But keep in mind, it's not just the $200 fee. The account HSBC offers also carries a $50 monthly fee if your balance is below $100,000 in cash or a combination of mortgage, cash and such. That can strain your funds at a time your trying to save as much as you can for the move over.

I was told when I went to the bank on Friday that only the premier account you have to have 100k.  The advantage of the premier account was that you can have a UK and a US account and go online and make transfers.  Otherwise you would have to have a US account and a UK account and pay $30 to do a wire transfer each time.  He didn't say that the $200 was for opening a premier account, just to open a regular UK current account.

I called the branch manager in the HBSC bank in Reston, VA and he told me today that the $200 fee was the administrative fee to open an regular checking, saving, etc account in the UK - it is not for the premier account.  And the $200 covers opening more than one account (ie checking and savings).  I think for us it is worth the $200 just to have an account open for when we go there in the summer and not have to deal with proof of address, since we will need to find a place to live when we get there.

I don't know if this is applicable to y'all, but I just wanted to note that our biggest hurdle with getting a house wasn't proof of address, but our lack of a credit history.  Since my husband had been living in the US for several years, his was basically nonexistent in the UK, and I never had one there in the first place.  All estate agents require a credit check and that's where we were getting stuck.

I called the branch manager in the HBSC bank in Reston, VA and he told me today that the $200 fee was the administrative fee to open an regular checking, saving, etc account in the UK - it is not for the premier account.  And the $200 covers opening more than one account (ie checking and savings).  I think for us it is worth the $200 just to have an account open for when we go there in the summer and not have to deal with proof of address, since we will need to find a place to live when we get there.

The document fine print say the $200 is to open any account. It's only waived as a 'courtesy' if you choose Premier ($100,000 deposit or balance, or some combination of balance and mortgage).