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18.2.2021 5 NEWS NICOLE MEILAK HSBC Malta have confirmed that they will be proceeding with the introduc- tion of a monthly €5 customer account fee, which will be applicable only to per- sonal banking customers. e bank said that approximately 75% of its existing customer base will not be impacted by the introduction of the fee as they already meet one of the exemp- tion criteria set forward. Customers paying in a minimum of €2,300 (€1,250 for account-holders aged 61 and over) over a three-month period into any of their current or savings ac- count will be excluded from paying the fee, as will customers receiving a disa- bility, medical sickness or unemploy- ment benefit directly into their HSBC bank account. ose receiving a local Social Security pension directly into their bank account will also be exempt from the charge. If a part of the customer's localy pension pays for their elderly home expenses, while the remainder is paid directly into their HSBC bank account, that custom- er will be exempt from the fee. Further exemptions will be in place for customers already paying a month- ly HSBC Advance proposition fee, and those holding a Home Loan, Home Owner Loan, Personal Loan, or Wealth Product distributed through HSBC. Students up to 25 years of age and fol- lowing a full-time programme of stud- ies will also be exempt. Following discussions with authorities over the bank fee, three further exemp- tions will be added to the list: • Customers only holding a Term Deposit account with HSBC will be ex- empt from the charge • Customers registered with the Com- mission for the Rights of Persons with Disability but not eligible for a Social Security Disability benefit, will be ex- empt so far as they provide relevant documentation to the bank • Customers in part-time employ- ment, with their salary paid directly into their HSBC account, will be exempt as long as they provide the bank with the relevant documentation Crawford Prentice, Head of Wealth and Personal Banking, said that the bank needs to concede that the banking environment has changed, and that the costs associated with operating a bank account have changed as well. "e introduction of this fee, which has been designed to give customers a choice, will partially cover that cost," he said. e bank experienced major backlash over the €5 fee, with the Consumers' Association arguing that it unfairly tar- gets low-income earners and pension- ers. HSBC ended up suspending the fee, and went on to hold discussions with the Central Bank of Malta and the MFSA over the matter. HSBC to go ahead with €5 monthly charge on customer accounts

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