HSBC NZ retail banking closure - All you need to know

HSBC NZ’s decision to phase out and close their retail banking businesses¹ will no doubt be a cause for concern for the bank’s existing customers. As of June 2023, no new customers were being accepted for accounts, with all existing customers urged to get in touch to begin the process of closing their HSBC account. We will also include some alternatives for managing your finances, including Wise, a trusty international account for sending, spending and converting money like a local.

What Happened to HSBC Retail Banking in New Zealand?

The decision was made after a strategic review of all business practices highlighted other aspects of the business that were ‘rapidly evolving,’ leaving the costs of running the retail banking sector as largely unjustifiable.

It follows a similar decision to remove itself from the retail banking sector in the US in 2021².

Many standard services, such as multi-currency accounts and international banking, were phased out. Revolving credit and overdraft services are also no longer available.

The result of this decision is that there is now a considerable number of people looking for a new home. We have put together this handy breakdown of alternative providers to alleviate some of the concerns you may have. We will explore the key features of each provider and who they may be best suited for.

Alternatives

So who are the alternatives? Let’s take a look.

ANZ Bank

ANZ is the largest banking provider in New Zealand, with over 150 branches nationwide. It has three types of personal accounts to choose from³:

• ANZ Go Account - this account has no monthly fee or automated transaction fees. There is also no Visa Debit card annual fee. This account is best suited for those who do most of their banking electronically.
• ANZ Freedom Account - this account has a $5 monthly account fee, though this fee can be waived with regular deposit payments. It also has no transactional or Visa Debit fees. This account is best suited for those looking to make regular savings and payments into their account.
• ANZ Jumpstart Account - this account is specifically designed for those under 21, or studying full-time. It has no monthly account fees, transactional fees, or Visa Debit fees. Overdrafts and personal credit cards are available through this account.

Bank of New Zealand (BNZ)

The Bank of New Zealand (BNZ) is another well-established banking provider, having first opened its doors in 1861. It also offers three types of personal accounts⁴:

• BNZ YouMoney Account - the most versatile of the accounts offered by BNZ. It has no monthly account fees or transactional fees, and arranged overdrafts are available. With a Flexi Debit Visa card, customers are able to complete overseas purchases as well as daily ATM withdrawal limits of up to $2500. This account is ideal for everyday, regular use.
• BNZ RapidSave Account - this account offers no monthly account fees and a current interest rate of 3.2% on savings. It also facilitates unarranged overdraft usage, but arranged overdrafts are not available. This account is best suited for those looking to build their savings.
• BNZ TotalMoney Account - if you are a former HSBC NZ account holder, and a homeowner, then this could be the account for you. Dollars that are held in this account contribute to lowering interest rates on mortgage repayments. This interest can be further reduced with the account grouping feature.

Westpac

Westpac is another major player in the New Zealand banking sector, servicing around 1.5 million customers annually. They have several account options available:

• Everyday Account - this account offers no monthly account or transaction fees, as well as access via an EFTPOS card. It also offers overdraft options as well as additional perks such as Cashback Wednesdays, which allows customers to claim money back off of their travel expenses⁵.
• Savings Accounts - Westpac is perhaps the most versatile for new customers when it comes to opening a savings account, with four different options available. Each offers slightly different features and benefits, so no matter who you are, you’ll be able to find something that suits your needs⁶.

Wise

For those seeking a more international account, Wise offers a multi-currency account and card that’s perfect for managing money globally, wherever you go. While Wise isn’t a bank, it functions as an online money transmitter, offering services similar to those of traditional banks.

• No Annual Fees: Open an account for free online or via the app, with no annual fees to worry about.
• Send Money Worldwide: Wise lets you send money to 140+ countries in 40+ currencies, offering low, transparent fees and the mid-market exchange rate, arguably the fairest rate available.
• 8+ Local Account Details: Get local account details in currencies like EUR and USD all in one place, making international payments and transfers easier.
• Most International Debit Card: Spend in 150+ countries with automatic currency conversion at the mid-market exchange rate. If your card gets lost or misplaced, you can instantly freeze and unfreeze it through the app for peace of mind.

🚀 Open your Wise account

With HSBC closing its retail banking services, it’s natural for many customers to feel uncertain about where to go next. A mix of a traditional personal account and Wise’s international features could be the ideal solution, giving you the flexibility and security to manage your finances wherever you are in the world.

Please see Terms of Use and product availability for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.