HSBC Offered Applicants for Its Student Accounts Standard Current Accounts in Error

Some university students who applied for HSBC’s student account this summer were offered the bank's standard account after a “processing error.”

HSBC admitted that a “number of individuals” who applied for its student account between some point in June (HSBC wasn’t able to pinpoint a day) and 16 August were instead offered, and took out, its regular current account, which comes with fewer perks.  

HSBC has now fixed the error and says applicants from 16 August onwards weren’t affected.

The bank says it is now in the process of contacting impacted customers to migrate them to the student account. “We apologise for any inconvenience caused,” a spokesperson for HSBC UK said.

Technically, you can decline to be migrated to the student account but it will probably be a better fit for most students. It comes with an interest-free overdraft of up to £3,000 and, for those in England, Scotland and Wales, perks including £80 in cash and the choice of either a £20 Uber Eats voucher or ASOS Premier membership for a year, a value of £9.95. (Those bonuses aren’t available to students in Northern Ireland). The account is available only to students over 18 and holding a confirming place on a qualifying course at a UK university or college.

In comparison, HSBC’s standard current account offers only a £25 interest-free overdraft buffer and doesn’t include any switching incentives.

Applicants for bank accounts and the credit search banks run when they consider them appear on your credit report. HSBC says this error won’t impact applicants’ credit scores. If yours is affected, HSBC will remove the standard bank account application from your credit report. If you reapply for HSBC’s student account after being falsely offered the current account, your credit file will show just one application.

Some applicants for the student account were told their applications was rejected due to their credit score. HSBC says that for some customers this rejection was in error but admits that some may have been rightfully rejected due to their credit record, as permitted by the terms and conditions of the account.