Should I keep my personal finances structured this way?

[thomasparra]

I have bank accounts with HSBC US, HSBC HK and HSBC Expat (Jersey). I also invest with HSBC HK, UK (through HSBC Expat with the Sharedealing platform) and Interactive Brokers HK.

The HSBC US account is used to pay my US credit card (Chase Sapphire) but due to the dramatic increase in fees and weaker reward program I am thinking of cancelling it after holding it for almost 10 years.

HSBC Expat is now asking for GBP 75k, invested in their expensive funds (buying LSE ETFs does not count towards the relationship balance) and as I do not pay myself GBP 120k in salary I cannot be exempt from the Premier charge anymore. I could be premier in HK but I am only able to buy HK or US listed ETFs, but I want European ones.

With all these factors coming together in 2025, I was thinking of simplifying my finance life: close HSBC US, Chase Sapphire, and all HSBC Expat accounts. However, this means that all my liquidities will be tied to Hong Kong (HSBC and Interactive Brokers). I have had zero issues with banking in HK, transferring large amounts of money before etc. but I am always wary of putting all my eggs in the same basket.

Any thoughts?

 

[daniels27]

I think it depends on your preferences. If you value cashback on credit cards, you cannot really avoid the US.

For the £120k, I think you can easily pay out £10k per month and pay it back to your company few days later. If possible, use scheduled recurring transfers.

Apart from that, I think the chance that HSBC goes bankrupt is faily limited. Even with all in one basket, the risk is probably acceptable to you. They may block your account and you will be without access for a while. That is probably more likely, hence it would not hurt to have money in at least 2 bank accounts with global access. Same for the credit cards, it just happens too frequently that one does not work or is currently blocked for too much travelling.

 

[thomasparra]

Thank you. I get about $1,000 per year in credit card bonuses/points, so worth it but I also value simplicity of not having to deal with multiple banks/cards.

I am also reconsidering closing bank/investment accounts in the US and Jersey for geopolitical reasons, always good to have open banking options. However, not sure I will ever need it.

 

[void]

isn't this the whole point of "overdiversification"? the fact you won't ever use it just means the luck went your way and not that it was useless

 

[thomasparra]

Yes, but overdiversification also needs to be managed (e.g. many accounts/apps/documents to fill, keeping track of finances across various credit cards/banks, not missing payments etc)

 

[daniels27]

Then why not HSBC Elite credit card? It pays 7.5% on travel if you book through their portal.

 

[daxbr]

... as long as you stay away from hsbc.mx .

 

[Houdini]

Makes sense, I’d probably do the same in your position. If the fees keep rising and access to EU investments is limited, it’s not really worth the hassle. That said, I’d also be a bit hesitant to keep everything tied to HK, maybe worth looking into a backup option in the EU just in case.

 

[thomasparra]

My backup was HSBC Expat but I do not want to pay all these fees. Maybe having everything invested through (and not in) HK with Interactive Brokers HK makes sense.

 

[cuno]

IBKR could be an alternative ?

 

[thomasparra]

Yes but I am still with IB HK