HSBC Expat: offshore banking in Jersey for expatriates

HSBC Expat accounts are held by HSBC Bank plc, Jersey branch, whose banking business is regulated by the Jersey Financial Services Commission. Jersey is part neither of the United Kingdom in banking terms nor of the European Union: neither the British guarantee scheme nor the European schemes apply.

Deposits fall under the Jersey Bank Depositors Compensation Scheme, which aims to protect eligible depositors up to up to £50,000². This ceiling is significantly lower than those of the European and British schemes, and the level of assets required to open the account exceeds it.

The public pages of the Jersey regulator that we consulted do not give the ceiling as a figure, and the page of the authority that runs the scheme could not be consulted: the ceiling cited comes from the official HSBC Expat page. The precise terms (overall cap of the scheme, rules per banking group) remain to be checked with the Jersey authority.

The bank requires one of the following conditions: having at least from £75,000³ (or the currency equivalent) to save or invest with HSBC Expat, to be deposited shortly after opening and maintained; or receiving an individual annual salary of at least figure being updated (or equivalent monthly credits) paid into the account; or already being an HSBC Premier client in another country and bringing in at least figure being updated.

These thresholds apply to accounts opened since the September overhaul of the fee schedule; older accounts remain subject to earlier, lower thresholds published in the same schedule.

The account is multi-currency, held in pounds sterling, euros or US dollars, with a debit card, international transfers and currency exchange between the account's currencies.

No monthly fees are payable as long as the eligibility criteria are met. Otherwise, the bank charges an Underfunding Fee of £50¹ for each calendar month in which the relationship does not meet the criteria. Clients who retain HSBC Premier status obtained with another group entity are exempt.

The full schedule of transfer and exchange fees has not been reproduced here: we have not verified it line by line in a form that we could cite and date.

• Is their country of residence among those accepted? The bank refers to its online application process, with no published list of exclusions.
• Their ability to maintain the assets or income threshold over time: otherwise, monthly fees apply.
• The scope of the Jersey guarantee, weaker than the European guarantees, relative to the amounts deposited.
• The reporting obligations of their country of residence: an account in Jersey must be declared like any foreign account and is included in the automatic exchange of information.