When we started our move to HSBC, we hoped that all our bank woes would be over but sadly not. We've now got HSBC and Natwest accounts but neither fully serve our needs. I've started this page to record the pros and cons of each bank (and also PayPal as a reference) and it's likely we'll open an account with a third bank some time this year in our ongoing search for a decent UK bank...
| Feature |
HSBC |
Natwest |
PayPal |
Notes |
| Bank transfers in and out |
 |
|
 |
PayPal only do outbound transfers. |
| BACS limit |
£10k |
£10k |
Unknown |
HSBC has a £10k per day limit which is acceptable - they also show when you've exceeded it. Natwest have a £10k per month limit which is a nightmare - and they don't tell you if you exceed it. |
| Online Banking (OLB) Usability |
 |
|
|
HSBC have a truly confusing interface that's very difficult to use. PayPal have by far the best interface. |
| Cheques |
 |
|
|
HSBC have very poor record keeping with cheques - cheques are not uniquely numbered and the statement details are useless as they only state what branch the cheque was paid in to. |
| OLB Features |
|
|
|
HSBC have lots of features, but difficult to use. Natwest have fewer features but hard to use. PayPal has loads of features and all easy to use. |
| Multi-user access |
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|
|
The banks allow multiple users but assign them all the same privileges - eg. they can make payments, etc. Only PayPal allows user-level privileges to be set. |
| Responsiveness |
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|
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The banks are starting to become more responsive, even Natwest now allows us to email our account manager. However, the banks look stupid in comparison to the amazing service offered by PayPal. |
| Foreign Currency Accounts |
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|
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While the banks can provide foreign currency accounts, they can't compete with PayPal's offering. |
| Security Measures |
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HSBC is the winner here - their BIB code generator strikes exactly the right balance of security vs. usability. NatWest have archaic security mechanisms that are extremely difficult to use and a single mistake can quickly lead to lock-out of all your accounts and services. While PayPal is super-easy to use, it would be nice to have a BIB code device for added security. |
| Online Statements |
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|
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The banks provide obfuscated statements which are of minimal use. In particular you can only ever get the past 30 days or so from HSBC and about 6 months from Natwest. PayPal provide extremely detailed, searchable statements right back to our first transaction in 2005, making the banks look silly in comparison. |
| Multi-account access |
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HSBC is the only service that allows us to see all our bank accounts and credit cards in one place. Both Natwest and PayPal require us to log in to separate sites to see credit card statements which is really annoying. |
| High interest accounts |
|
|
|
PayPal don't offer a high interest account (or indeed any form of interest). Natwest have a better interest rate than HSBC and also have more detailed information associated with interest payments. |
I've been told on various occasions by the banks that the reason they don't provide longer periods for statements is either due to a) technical reasons or b) money laundering regulations. I think both excuses are utter crap considering what PayPal provide.
I'll update the table from time to time as I think of more key differences.
At the moment my feelings are:
- Banks are not in touch with their customers' needs, but PayPal are.
- PayPal desperately need to start accepting incoming bank transfers and cheques - and also get better security
- HSBC is the best bank for making payments and has the most usable security
- Natwest is the best bank for receiving payments but their security measures are painful
The search for a decent UK bank continues. The issues I've had over the last week alone have made me feel we can't stay with either HSBC or NatWest for too long.
Likely candidates for the next account:
- Alliance and Leicester
- RBS (Royal Bank of Scotland)
Added by
This is worth a read: http://news.bbc.co.uk/1/hi/business/7417303.stm
It should be noted that RBS Group is the parent company of Natwest, as such I'd be surprised if it were substantially different - worth a shot if you think so though.
Well, I'm still pretty keen to look in to RBS. I didn't rate them much in the past but knowing what they've been doing recently makes me want to give them another try - they certainly seem to be working hard on improving things.
Remember that Natwest was acquired by RBS so although they will share lots of similarities I'm guessing the parent company does a better job of things.
I find RBS annoying as a personal customer. I don't find their site easy to use. But then I don't do multinational transactions with them. They might be good in that regards.
My favourite online bank so far was lloydsTSB.