HSBC Business Banking

About HSBC

HSBC are on of the Big Four Banks and are a very common sight on UK high streets despite being founded in Hong Kong in 1865. More than 150 years later they operate in 65 countries with more than 15 million business customers and more than 600 branches in the UK. HSBC is an acronym of The Hongkong and Shanghai Banking Corporation Limited.

See our full HSBC business bank account review of features, fees and how they compare against other online and high street bank accounts.

HSBC pros & cons

Pros of HSBC

• Mobile, online, & telephone banking
• Over 600 branches in the UK
• 12 months free banking for startups
• Award-winning business Kinetic account
• High rate of small businesses being approved for loans
• Business overdrafts available

Cons of HSBC

• Expensive monthly fees
• Turnover requirements on accounts
• Customer support not available 24/7

HSBC current accounts

Businesses can apply for and open both current and savings accounts with HSBC. These are the main features you'll benefit from:

• Business insights - access a suite of business guides, articles & webinars to help with every aspect of your company
• UK customer support - HSBC have UK-based support call centres for any banking problems you may have
• Advanced reporting - get spending & cashflow insights or forecasts as well as automatically categorised expense reporting
• Tomorrow Ready hub - a programme designed to help take the stress out of planning for tomorrow, with loads of helpful tools & guides

HSBC have three current accounts available, one for sole traders, one for small business and another for larger businesses that need more management:

• Kinetic Account - this account is for sole traders or single director companies and startups that generate less than £2 million in turnover per year.
• Small Business Banking Account - startup or switching businesses with more than one director can apply for this account, if their annual turnover is less than £2 million.
• Business Banking Account - designed for SMEs with an annual turnover of more than £2 million, suitable for multi-user access. You'll receive a dedicated relationship manager that will help with any problems.

All three of the business current accounts that HSBC offer are subject to a 12 month introductory free banking period, during this you'll pay no monthly or standard transaction fees.

After the 12 months is up you will be put on the tariff that relates to your account activity.

These are the different HSBC business accounts and their fees:

Eligibility

To be eligible for a HSBC account you must:

• You have a limited company or are the sole director (registered with Companies House)
• You are a sole trader or sole owner of the applying business
• Provide proof of address and tax residency
• Have a suitable iPhone (6 or newer) or Android device

You will also need to supply the following during your application:

• Companies House registration number (if applicable)
• Business details: tax information and turnover
• Personal details: name(s), date of birth, address(es), National Insurance Number(s)

Opening an account

Here's how to open an HSBC business account:

1. To open online download HSBC's app from the App Store or Google Play, or sign up from their website
2. To open in store find your nearest HSBC and head on in
3. Complete their application - HSBC will confirm your eligibility
4. Verify your ID - with photo ID such as a passport or photocard driving licence
5. Once approved (can take 2 working days) you can start banking

Overdrafts

HSBC offer businesses overdrafts of up to £30,000.

Interest is charged at 12.85% EAR variable and an arrangement fee of 1.75% the agreed limit, or a minimum of £25 is charged annually.

HSBC savings accounts

HSBC have multiple business savings accounts available, they are:

• HSBC Kinetic Savings Account - when you open you HSBC Kinetic current account you'll also have the option to open an HSBC Kinetic savings account at the same time, from just a £1 deposit. Rates from 1.03% to 1.12% AER.
• Business Money Manager Account - there are usually three rates and how you save determines what you get. If you make a withdrawal within 30 days you'll be put on the instant access rate, whereas if you don't take any cash out for 30 or 60 days you'll get the 30 day or 60 day rate, with interest starting at 1.03% to 1.11% AER. There is no minimum deposit amount.
• Business Money Market Accounts - businesses will have the choice of three types of savings accounts, all of which require a minimum deposit of £50,000:
  • Call account - instant access account with no withdrawal charges and no minimum periods of investment
  • Notice account - another instant access account that requires giving notice between a week to six months before taking money out
  • Fixed account - the fixed periods you can save for range from one day to a year, all the way to five years. You won't be able to withdraw until your chosen term is up

Additional business services

HSBC offer many finance and borrowing solutions to their business customers. You'll have access to business loans, credit cards and other business cards.

They also provide bank accounts for charities and other non-profit businesses.

HSBC reviews

The HSBC Kinetic app scores a near perfect 4.8 stars on the App Store, from over 9,800 customer ratings.

On Google Play, they score well with 4.2 out of 5 stars, from nearly 4,000 reviews.

But on Trustpilot, HSBC only get 1.4 stars from over 7,000 reviews, with 89% rating them 1-star.

Information correct as of 1st February 2023.