Around one in every four HSBC customers is to be charged €5 a month for personal banking services, with the bank moving ahead with the plan despite a request by the Central Bank and financial regulator to reconsider.

The bank said on Wednesday that it had decided to proceed with the plan, which would be tweaked following “extensive consultation” with stakeholders. 

The revised version of the plan will mean that 75 per cent of its customers will not be affected by the new charge, the bank said.

HSBC first announced the fee in January but froze those plans following a public outcry and a request by the Central Bank and MFSA to reconsider the fee

It has said that the €5 monthly fee is necessary to cover the costs of operating a bank account. 

Who will have to pay?

The change will affect any customers aged under 61 who deposit less than €2,300 over three months into any of their accounts. Customers aged 61 or older must deposit a minimum of €1,250 every three months to avoid the fee.

Children, students, people who receive disability, sickness or unemployment benefits are exempt. 

Also exempt are customers who have a home loan, personal loan or a wealth product with HSBC.

Following talks, disabled people who do not qualify for a social security disability benefit and those with a part-time job with their salary paid into their HSBC bank account will also be exempt. 

The change comes into effect in June for customers over 61 and one month prior, in May, for everyone else. 

HSBC Malta made a €1.8 million profit in the first half of 2020, with the COVID-19 outbreak adding to its credit losses and declining revenues and pushing profits down by €19.1 million. The company has yet to release details of its full 2020 earnings. 

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