HSBC has completed the official transfer of M&S Bank, a move that impacts thousands of customers. M&S Bank was acquired by HSBC in 2004 but continued operating under its own brand until now. The high street lender has been legally transferred to HSBC UK, meaning all accounts, products, and services previously held with M&S Bank—including credit cards, personal loans, savings products, general insurance, and store cards—will now be provided by HSBC UK.
What Changes for Customers?
The M&S Bank brand name will remain, but the biggest change involves the Financial Services Compensation Scheme (FSCS) protection. Since M&S Bank, HSBC, and First Direct are now under the same banking license, customers with savings across these brands will only have a combined FSCS limit of £120,000. This means if you have savings in multiple accounts, your total protection is capped.
Savings and cash ISAs held with M&S Bank are now under HSBC UK, but access to your money remains the same. Account numbers, payment details, and direct debits are unchanged. Interest rates also stay the same.
Fixed ISA Customers: Penalty-Free Transfer Window
According to MoneySavingExpert.com, customers have until July 31 to transfer or close a fixed ISA without penalty. An MSE spokesperson said: "If you fixed some time ago, it's worth checking your rate to see if you can beat it elsewhere, as the move means you won't be charged the usual early withdrawal charges. Of course, if you close an ISA rather than transferring it, the money LOSES its tax-free status."
Credit Cards, Loans, and Insurance
Credit card and personal loan customers can continue using these services as normal. Payment details and bank accounts remain the same, including direct debits. M&S credit card holders can make payments at HSBC branches, similar to First Direct customers. First Direct customers can continue using HSBC branches for basic banking needs like paying in cheques, depositing cash, and withdrawing money.
Insurance policies will continue as normal until they expire. After expiry, customers will need to find new cover because M&S Bank no longer offers renewals or new insurance policies.
Current Accounts and Branches
M&S Bank does not offer current accounts. It closed its 29 branches in 2021, citing a shift to online banking. All branches were located inside M&S stores, but its travel money bureaux desks were unaffected.
