HSBC offers price protection on current accounts

HSBC is now offering its current account customers price protection insurance, meaning if one of its customers finds something they have bought cheaper elsewhere, the bank will refund the difference.

This is the first time a UK current account has offered this sort of deal, although similar propositions have been available on credit cards for some time.

"Who hasn't left a shop after making a purchase and then wondered whether shopping until they dropped could have got them a better price? Now, with HSBC's new price promise insurance those concerns will be a thing of the past as we give UK consumers the ultimate purchasing power on the UK high street," said Joe Garner, head of customer propositions at HSBC.

The HSBC product allows people to claim for a refund for a difference of as little as £10, up to a maximum of £5,000 on a wide variety of high street goods.

The free HSBC insurance covers thousands of items bought at high street stores - but has some hefty exclusions.

While purchases including televisions, trainers, sofas, stereos and jewellery are covered; any purchase online, or by mail order is excluded.

It also does not cover computers, mobile phones, holidays, cars or any of the accessories to go with these. Understandably antiques, living products such as plants or animals, and perishable goods are also not covered.

Stuart Glendinning, director of current accounts at price comparison website moneysupermarket.com, commented: "The HSBC price promise is not new to the personal finance industry but this offer is eye-catching for its scope - making it available to all existing customers unlike most new current account propositions.

"In the past, banks have relied on inertia to retain customers and this is a further sign that competition is making the banks become more proactive in responding to market conditions."

Price promise insurance is available to the vast majority of HSBC's 7.6 million UK current account holders, but not to customers of the bank's Basic Bank Account, International Student Account, or Live Cash Account.

HSBC has also refreshed its Premier account and its Bank Account Plus.

These accounts now offer free worldwide travel insurance, free global ATM access, fee-free travel money, and travel discounts of up to 50 per cent. The Premier account also offers a 24/7 concierge service, free global emergency assistance, and the highest ATM withdrawal limits available on the high street.

Moneysupermarket's Mr Glendinning was less convinced by these new account offerings.

"People need to assess whether they will take advantage of the ancillary benefits and weigh these up against the monthly charge. At nearly £13 a month, the fee is not insignificant and it's certainly worth looking at other current account propositions before deciding whether to take sign up to this account or not," he commented.