HSBC current account holders to receive text alerts

Current account holders with HSBC will start receiving text alerts from next month if they are nearing their overdraft limit.

It is hoped that the new initiative will help consumers stay in control of their money and avoid bank charges for going over their borrowing limit.

The bank also intends to contact all of its current account holders who pay more than £180 each year in overdraft charges.

Mike Oliver, the bank's head of current accounts, said: "Introducing mobile phone text alerts will help the small proportion of our customers who sometimes exceed their borrowing limits, and offer peace of mind to those who don't."

He added that other initiatives which the bank has recently implemented have led to a 15 per cent fall in the number of people going over their overdraft limit.

One of these schemes was the introduction of HSBC's Pay Monthly account. It offers customers a current account with no 'hard floor' which means the customer cannot borrow more than their overdraft limit.

This means that the customer will avoid being charged for going over their limit. The current account has a monthly fee of £15, which is less than £180 a year.

There are other current accounts on the market, with a range of benefits and interest rates.

It may therefore be wise for consumers looking to switch current accounts to use a price comparison site, such as Money Expert, in order to do so.

A recent report by Halifax Savings revealed that the average Brit will spend £900 on attending a wedding each year.

It was found that wedding guests spend around £111 on accommodation and travel, £106 on clothes, £81 on wedding gifts, £91 on a stag or hen do and £69 at the wedding reception.

Therefore, text alerts could help those planning to attend a wedding to stay out of their overdrafts and having to pay out more money.
 

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