HSBC has raised the eligibility criteria for its Premier account, requiring higher earnings or larger savings. The bank quietly updated the terms for its Premier account, which includes perks like family travel insurance.
Previously, customers needed an annual income of £75,000 or £50,000 in savings or investments with HSBC. Now, the bank has increased these thresholds to a £100,000 annual income or £100,000 in savings or investments, or the option to hold an international account.
These changes apply to new customers from September 2024 and will extend to all existing customers by April 9, 2025.
A spokesman for HSBC said: 'The HSBC Premier Account has received the biggest redesign in over a decade, adding a range of new features and capabilities to meet the complex wealth, financial planning and lifestyle needs of Premier customers.
'We have revised the eligibility criteria for the first time in six years to enable us to provide focused service and support to our customers, all still without a monthly fee.'
For joint accounts, HSBC said 'at least one of the parties must have an individual annual income of at least £100,000.
'When qualifying through savings or investments, these need to be held with HSBC in the UK within 6 months of account opening if you're new to HSBC, or before you open your account if you're an existing customer.'
That £100,000 level is over the threshold of Financial Services Compensation Scheme protection of £85,000.
Andrew Hagger, founder of Money Comms said: 'HSBC review these limits from time to time and maybe it felt that the £500 interest free overdraft and wide ranging travel insurance, and specialist wealth advice benefits are sufficiently exclusive to warrant increased income or savings requirements and was no longer seen as cost effective to continue offering at the previous income/savings level.'
Premium bank accounts are designed for your bank's wealthier customers and they typically offer generous perks.
They tend to also have stricter eligibility requirements based on salary and/or savings and investments.
Following changes made to HSBC's premium account, is it worth hanging onto if you're still eligible and how does it compare to other banks?
HSBC does not charge a monthly fee and with this you'll receive worldwide family travel insurance up to age 69.
You'll also get discounts on other products, like mortgages, as well as transferring cash fee-free between HSBC accounts.
Barclays' premier product also does not charge a monthly fee and you'll need an annual income of at least £75,000 or have a total balance of at least £100,000 in savings or investments.
With this you'll receive monthly Avios rewards, cashback rewards and exclusive mortgage options, which include a higher annual overpayment allowance. It also offers customers enhanced savings rates.
Natwest also has strict eligibility requirements for its premium accounts. You'll need a minimum income of £100,000, or £12,000 joint income. Similarly, you'll need £100,000 savings or investments, and a minimum £500,000 mortgage with Natwest.
Its Premier Select account doesn't charge a monthly fee and in return, you won't have to pay transaction fees on payments outside the UK and won't have ot pay interest on the first £500 of an arranged overdraft.
Its Premier Reward account, which costs £2 a month, offers £9 a month back in Rewards for two direct debits, which need to be at least £4.50 each. You'll also receive £1 a month in rewards just for logging into the mobile app monthly, and earn at least 1 per cent cashback at certain retailers.
Its Premier Reward Black account, which costs £6 a month, will give you VIP access to events and top restaurants, as well as 25 per cent cashback on concert and show discounts.
You'll also receive worldwide family travel and phone insurance, airport lounge access, UK and European car breakdown cover and 24/7 home emergency service.
Santander's Select account is open to customers that earn at least £5,000 a month or keep £75,000 in their investments, savings or current account.
You'll receive priority service, which includes 24/7 telephone support, as well as access to travel and life insurance, among other perks.