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Major bank to axe key service for all 1.9million customers in weeks
Read on to find out how the changes will affect you
MORE than 1.9million customers of a major bank will find it harder to pay money into their accounts after it announced it will axe a key service.
First Direct contacted customers yesterday to let them know they will no longer be able to use HSBC UK self-service machines to pay in cash.
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First Direct operates as a telephone and internet-based bank so it does not have any branches.
Instead, customers can visit an HSBC branch to access in-person banking services.
Previously they could pay in cash at the counter or by using a self-service machine.
But the bank has confirmed that this service will no longer be available from April 9.
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The change could mean First Direct customers are forced to wait in lengthy queues to speak to someone at the counter.
They will still be able to withdraw cash at an ATM or over the counter at an HSBC branch for free.
But they will need to arrange to withdraw money via a counter ahead of time by calling 03 456 100 100.
Meanwhile, last month First Direct changed its rules so that customers in the Channel Islands and Isle of Man can no longer pay cash or cheques into their accounts via an HSBC branch.
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Customers will be forced to go elsewhere to pay in cash or cheques.
How else can I pay money into my account?
First Direct customers will still be able to pay in cash at HSBC Full Service Branches, Cash Service Branches and Banking Hubs.
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Customers with a 1st Account can use their debit card at any of the 11,500 Post Office locations across the UK to:
- Check their balance
- Pay in money
- Withdraw cash
You can pay in up to £3,000 per day or £20,000 each year at the Post Office.
These services are not available at Post Offices in the Channel Islands or Isle of Man.
How do I switch bank accounts?
SWITCHING bank accounts is a simple process and can usually be done through the Current Account Switch Service (CASS).
Dozens of high street banks and building societies are signed up - there's a full list on CASS' website.
Under the switching service, swapping banks should take seven working days.
You don't have to remember to move direct debits across when moving, as this is done for you.
All you have to do is apply for the new account you want, and the new bank will tell your existing one you're moving.
There are a few things you can do before switching though, including choosing your switch date and transferring any old bank statements to your new account.
You should get in touch with your existing bank for any old statements.
When switching current accounts, consider what other perks might come with joining a specific bank or building society.
Some banks offer 0% overdrafts up to a certain limit, and others might offer better rates on savings accounts.
And some banks offer free travel or mobile phone insurance with their current accounts - but these accounts might come with a monthly fee.
To pay in more cash than this you must visit a Full Service Branch or Cash Service Branch at HSBC.
But this change also does not include HSBC branches in the Channel Islands or Isle of Man.
You can also pay in coins at the Post Office up to the value of £250 per transaction.
They must be bagged by denomination.
To find your local Post Office branch visit postoffice.co.uk/branch-finder.
Another option is to visit your local Banking Hub.
Banking Hubs are a new way to manage your money and are a shared space for different banks to meet with their customers.
The hubs are run by the Post Office and are shared by several major high street banks.
At a Banking Hub, you will find the same services you would expect in a Post Office branch such as checking your balance, withdrawing cash or paying in cash or a cheque into your account.
First Direct said it is amending its terms to explain to customers how they can use these services to pay in cash.
It said: “We’re adding additional wording to explain how you can deposit cash in multi-bank ATM deposit machines and Post Office Deposit Machines.”
It added that it has “clarified the timing and deposit limits that apply to some cash deposits”.
What other changes has First Direct made to its services?
First Direct scrapped its text message banking service, which provided customers with on-the-go alerts in August.
Getting rid of the service means thousands of customers can no longer get text notifications about their current account balance.
From August 10 customers can no longer receive “mini-statements” via SMS, which included a balance and their five most recent transactions.
Instead, the bank asked customers to use its online and telephone banking services.
Customers who are not registered for online and mobile banking will still receive text alerts.
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Those who want up-to-date information about their balance and transactions in real-time can enable push notifications on their mobile phone.
First Direct launched as a telephone-only bank in 1989 and has provided a text message service for the past 25 years.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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