HSBC Premier Lifehack

[toums]

Is there a specific reason to go to Turkey just to open an HSBC Premier‌ account (besides the lower minimum deposit)?

I personally opened an HSBC Expat (Premier) account a‍ few years ago, completely remotely. HSBC Expat is based in Jersey, and the minimum balance⁠ when I opened it was the equivalent of 50K GBP.

I think it's still a⁤ good option, as it's convenient (no need to travel), and Jersey is probably a better⁣ jurisdiction than Turkey. As mentioned by @Overtrade, once you have an HSBC Premier account,⁢ it should be easier to open another Premier account in different jurisdictions.

However, jurisdictions like︀ Singapore don’t seem very accessible (with extremely strict due diligence), especially if you are not︁ a Singapore resident or don’t have strong local connections (business-related). Hong Kong still appears challenging,︂ but it’s easier than Singapore.​

 

[daniels27]

https://www.hsbc.com.tr/en/daily-banking/accounts/interest-rates
What is strange, is that you pay about 4% on TRY consumer loans while‌ the time deposit rate is 7%. Sounds like you can get a consumer loan and‍ then put it in a time deposit?

UPDATE: Just checked the fineprint. The credit interest⁠ rates are monthly, while the savings and deposit rates are annual rates.

@toums, I⁤ think some people use it to get cheaper pricing on some streaming etc. service. I⁣ personally would not recommend that road as it is a waste of time for very⁢ little gains.

 

[dziter]

What about getting a real estate mortgage as a non-resident with HSBC thanks to HSBC‌ Premier status?
Any clue about that? Of course, in a juridiction where HSBC Premier is‍ available.

 

[daniels27]

Yes is possible. Would need real estate in that⁠ country though.

 

[Marie Manila]

You have 6 months after the new limit comes into force to fulfill the‍ conditions for retaining Premier (if you hold Premier status already by that date).
Maybe in⁠ August the TRY decreased enough to keep Premier with only 35 k$. 😉

They changed to to 75k GBP a few month⁢ ago.

This might really︂ work. But keep an eye on the withholding taxes.
But will they really give you︃ a 30k consumer loan as a non-resident?

Does anyone know what will happen if you︄ lose the Premier in Turkey and have an HSBC expat account (without holding 75k GBP︅ with them)?
Will they really charge you the underfunding fee from day one?
What happens︆ to your long-term time deposits in Jersey?

 

[toums]

yes i think they charge 35/40 GBP per month if you dont keep the minimum‌ balance in the bank account / deposit / investment account on HSBC expat.

Note also‍ that Jersey has no WHT on interests distributed.

 

[daniels27]

Thanks. Yes, it says so in the small print of the email.

 

[daniels27]

Figured it out, the credit interest rates are monthly rates.

 

[Marie Manila]

How long will it take for HSBC entities in other countries (Jersey, UK, Singapore etc.)‌ to receive the information about the loss of Premier status in Turkey?
They do not‍ participate in Global View. Do they really share the information about Premier immediately?

 

[redeye]

It's only 65,000 EUR‍ it's still worth it to keep the Premier account.

 

[JustAnotherNomad]

Once you have it, why not just open an account in another jurisdiction and then‌ start paying the fee there? If it's 500 GBP per year or so, what's the‍ big deal if you really like the account?
Might be less risk than keeping 65k⁠ in Turkey?

 

[daniels27]

They won't go bankrupt. But at 3% interest,⁤ 60k USD still cost you 1800 USD per year.

 

[Marie Manila]

I did a lot of research on Google and after a while found this document:
https://www.hsbc.com.tr/medium/document-file-6834.vsf

According to this HSBC document, in most cases no filling is required if you have‍ interest or dividends. The bank will make a tax withholding, which is final.

 

[Marie Manila]

To be honest, I have a hard feeling entrusting more than 40 k$ to a‌ single bank. So far I have spread my money over many banks. And 2 million‍ TRY is way more than 40 k$.
(For example, what happens if HSBC Turkey freezes⁠ my account and I have all my money there?)
So I am still looking for⁤ a way to keep Premier until the TRY loses enough value.
As long as you⁣ are still Premier in Turkey, it should be easy to open an account in another⁢ country.
Would it be possible to open a Premier account in another country, which would︀ allow Premier for a fee? Jersey or Singapore has an underfunding fee if the conditions︁ for Premier are not met. But you remain Premier, if I understand correctly (in SG︂ for max. 1 year).
So I would still be Premier worldwide as I retain Premier︃ status in Jersey or SG by paying my underfunding fee, right?
If so, which country︄ has the cheapest underfunding fee? 😛

 

[toums]

If you are worried︃ about having 40K in a single bank account (especially in a large international bank like︄ HSBC), then it probably means you are not yet at the level to truly optimize︅ your international banking setup. Just keep a few basic retail bank accounts in your country︆ of citizenship and your current and/or previous country of residence. Add an IBKR account, and︇ that should be more than enough for now.

 

[daniels27]

I think most HSBC︃ charge about 50 USD if you do not meet the requirements. I think it will︄ probably be possible in Turkey too.

You can try Malta or US or︊ somewhere where there is a governmental asset protection scheme.

 

[Marie Manila]

Most of my accounts are already offshore, and I am not worried about⁣ 40k in a single bank account.
The question is not how much money can I⁢ lose in order to get into financial trouble, but rather how much money can I︀ lose and still be able to sleep peacefully at night without being mad at myself..︁
I have been involved in 3 bankruptcies so far. All of them were 5 figures.︂ And I have been able to sleep at night without being angry at myself.
I've several (comparatively small) bank accounts frozen because they want to get some documents I don't︃ want to send. I can still sleep well and keep the accounts frozen.

A peaceful︄ night's sleep is one of the most important things in my life.

About HSBC, I︅ just don't trust HSBC that much. In this company nobody knows what's going on where︆ and how. Take Jersey Branch, for example. The website says minimum relationship balance is 50︇ kGBP. I opened the account and received an e-mail. It also states 50 kGBP. In︈ the introduction call I was told that 75 kGBP is the minimum.
Another HSBC entity︉ is not able to upgrade me to Premier. “Technical error” is the statement. I have︊ tried via secure message (which are not answered), chat and phone. So far without success.︋
I have made a transfer between 2 own HSBC accounts. This should be free of︌ charge. I was charged about 20 $. The receiver HSBC entity refers to the sender︍ HSBC entity and says the transfer must be free of charge on both sides. Sender︎ HSBC entity says that they cannot help me any further. It's a really small amount️ of money, but it doesn't make a professional impression.
How can I really trust such‌ a bank so much and sleep peacefully?

In Turkey, there is no underfunding fee. They⁤ simply withdraw the premier status if you don't meet the requirements.

Thank you for your suggestions.
I don't care about asset protection. I think⁢ HSBC is too big to fail.
I'm more worried about account freezing and struggling to︀ get the money back. If it's a small amount then I can just ignore it.︁ But with 2 million TRY, I can't just ignore it.
(Btw, if I remember right︂ Turkey has asset protection only for Turkish citizens)

 

[daniels27]

This one?
https://www.tmsf.org.tr/en-us/Tmsf/Mevduat/mevduat.sss.en

But which banks⁤ went down?

 

[Marie Manila]

Ui! My information seems to be outdated‌ and there seems to be a protection for foreigners now.
Almost 10 years ago, I‍ considered opening an account in Turkey. At the time, I was informed that in the⁠ past only Turkish citizens were compensated in the event of bank insolvency. (I must confess⁤ that I did not cross-check this information)
After that, I never looked into Turkey's Deposit⁣ Protection Fund again.

Two were⁢ in Europe and the well known EPB.

 

[nobel]

I had three in Europe: Satabank (Malta), BNC10 (Spain), FlowBank (Switzerland). BNC10 owes me money‍ that I will probably never see again.
Which one was it for you, the same⁠ or?