Not wanted by HSBC? These banks are for you

Not wanted by HSBC? These banks are for you

HSBC prompted a storm of protest this week after effectively banning less well-off customers from one of its branches. From June, its branch at Canford Cliffs in Poole, Dorset, will offer personal, over-the-counter service to "premier" customers only - those with at least £50,000 in savings, or a £200,000-plus mortgage, or an annual income of £75,000-plus and a mortgage of at least £100,000.

So where can low earners find a basic bank account? Below we name the providers catering for the less well-off, and at the other end of the scale, we list the private banks for those who now like to be known as the "economically enfranchised".

Basic accounts

Nationwide building society's current account and credit cards do not carry an annual fee, while all its savings accounts can be opened with £1, and all its investment products can be started with just £20.

All the major banks offer basic accounts aimed at the poor and those who have problems opening a normal account. These include direct debits and standing orders, and a card for cash machines. Some offer a debit card, allowing people to buy goods provided they have the funds. But in most cases you don't get a chequebook and many don't pay any interest.

There are still many people with no current account, sometimes because they are unable to provide adequate ID. But now there is an alternative. Eight credit unions.....continued below

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recently launched their own current accounts. You get a debit card that can be used in shops and at ATMs, and can set up standing orders and direct debits, but you don't get a chequebook or overdraft.

The credit unions taking part in the pilot are Capital Credit Union (Edinburgh, Lothian and the Borders), Glasgow Credit Union, Hull and East Yorkshire Credit Union, Leeds City Credit Union, Scottish Postal Workers Credit Union, Scotwest Credit Union, Southwark Credit Union (London) and White Rose Credit Union (Wakefield, West Yorkshire). However, some will be imposing charges. Glasgow Credit Union's charge is £1 a month, while Capital Credit Union's is £1 a week.

Only the rich need apply

Coutts, the Queen's bank, is perhaps the most famous for the rich. You really need "investable assets" of around £500,000-plus, though there is some flexibility. Coutts has 63,000 UK clients, and not all are old-money toffs. It is targeting "the millionaires of the future", and opened an office in Milton Keynes last year.

Citigroup says it is the biggest global private bank specialising in the "ultra high net worth individual". That means a minimum of £5m-£10m.

Barclays Private Bank promises "bespoke solutions" to help clients achieve their "lifestyle goals" and plan for the "future transfer of your wealth to younger generations". But unless you have at least £500,000 in investable assets, it is not interested.

Kleinwort Benson Bank offers "total wealth management" even for the only moderately affluent. Its minimum is just £100,000.

C. Hoare & Co have looked after the wealthy since 1672. It says the typical client has at least £500,000, but will take those with "excellent prospects".