Customer FAQs

• In the absence of receiving any instruction from you by the requested closure date, we will treat remaining balances as unclaimed and act in accordance with our Terms and Conditions and the New Zealand Unclaimed Money Act 1971.
• Balances remaining in your account(s) of NZD1.00 or less (or foreign currency equivalent) will be donated to Hato Hone St John (St John Ambulance) – a registered charity in New Zealand providing ambulance services and first aid to those in need.
• Balances remaining in your account(s) of NZD1.01 or more (or foreign currency equivalent) will be transferred to the New Zealand Inland Revenue Department (IRD).
• In line with the IRD’s procedure, amounts of NZD100.00 or less (or foreign currency equivalent) are not captured on the IRD’s unclaimed money register. As a result, you will not be able to claim values below this amount from the IRD.
• Please visit Unclaimed money (ird.govt.nz) for further details on the Unclaimed Money procedures.

• Balances of amounts of NZD100.01 or more (or foreign currency equivalent) will be captured on the IRD’s unclaimed money register in the name of the account holder. These funds can be then be claimed directly from the NZ IRD.
• Please note that, in line with the IRD’s procedure, amounts of NZD100.00 or less (or foreign currency equivalent) are not captured on the IRD’s unclaimed money register. As a result, you will not be able to claim values below this amount from the IRD.

• Like all organisations, HSBC regularly reviews its business to ensure we are operating effectively and efficiently for the long term.
• The bank has to make challenging decisions to prioritise areas that drive the highest commercial growth and identify how to simplify operations to reduce costs and inefficiency.
• The decision to wind down the deposit business in New Zealand has come after a strategic review of the business and reflects the rapidly evolving commercial, regulatory and technology needs of running a sustainable retail business. 

• Due to the sale of our mortgage portfolio, the wind down will progress faster than we initially expected.
• We are now sending formal requests to our customers asking them to close their account(s) by a specified closure date.

• Customers with term deposits that mature on or prior to 1 May 2024 have now been contacted and requested to close any remaining HSBC accounts once those TDs have matured.  Please ensure you action your account closure in a timely manner after your maturity.
• Customers with term deposits that mature on or after 2 May 2024 have been contacted separately.

• On 1 May 2024, any customers with term deposits that mature on or after 2 May 2024 will be paid out the value that they expected to earn over the original term of their deposit.  If you are eligible for this, we have contacted you separately.

• In June 2023 we announced our decision to wind-down the Wealth and Personal Banking Business in New Zealand. 
•  In December last year we sold our mortgage portfolio to Pepper Money, and we are now winding down the deposit portfolio.  
• Up until June 2023, we were still taking deposits for terms up to five years, so we have had to make this decision in order to complete the wind-down in a timely manner. 
• We must ask our customers to move their funds to another financial provider as part of the wind down as HSBC will be closing its Wealth and Personal Banking business in the coming months.  
• For customers with longer dated maturities for their term deposits, the best way we can do that is through this process where we will honour the value promised for the original term of their deposit and ask them to move their funds as soon as possible.

• You can break your TD with us at any time.  However, if your TD matures after 2 May 2024, and you wish to break it before 1 May 2024 you will not be eligible for the net future interest pre-payment. 
• We have waived all TD break fees and penalties of interest earned.  
• Any TDs broken prior to 1 May 2024 will earn interest up until the break date only.

• With the sale of the mortgage portfolio in December 2023, the wind-down of the deposit portfolio has accelerated.  We had to select a suitable date where you, our customers, would have enough notice to arrange another financial services provider, and balance this with the announcement of these Term Deposit future interest pre-payments. 

• As with any business decision, there must be a date chosen for these decisions to be made public.  This is a commercial decision that has been given careful consideration before proceeding.
• HSBC New Zealand first announced the wind-down on 13 June 2023.  At that stage we also announced that Term Deposits on terms of more than 12 months could be broken without penalty. Interest would be earned up until the break date and paid at the contracted interest rate.  
• As the wind-down continued, from 29 September 2023 we further enabled Term Deposits on all terms to be broken without penalty. Our customers have had the ability to break and move their term deposits for some time.
• HSBC staff and impacted customers have only been advised of these future interest pre-payments as of Monday, 15 April 2024.

• Due to the sale of our mortgage portfolio, the wind down will progress faster than we initially expected.
• We are now sending formal requests to our customers asking them to close their account(s) by a specified closure date.
• After this requested date for closure, if your account(s) remain open with a balance, HSBC New Zealand will consider the funds unclaimed and we will commence the formal process of forwarding your funds to the New Zealand Inland Revenue Department, in accordance with the Unclaimed Monies Act. Should you have questions regarding the Unclaimed Monies process, please visit www.ird.govt.nz for further details on their procedures.
• If you would like further assistance with transferring your funds and closing your account(s), please contact your Relationship Manager, send us a Secure Message via Personal Internet Banking, or call our Contact Centre on 0800 02 80 88, or +64 9 368 8557 from overseas (if calling from outside of New Zealand international toll charges will apply).

• If you have your salary deposited into your HSBC current or savings account, or you have regular payments loaded on your account(s) – including automatic payments, direct debits, and bill payments – we recommend you transfer these over to your new bank account now.

• There are 3 options available to you to initiate the closure process;

1. IF YOU HAVE INTERNET BANKING, the most efficient and safest way for you to instruct us to close your HSBC account(s) is to reduce your account(s) to zero balance and include your account closure request in your payment instructions. Do note that small balances remaining in account(s), will be donated to the HSBC New Zealand selected charity, Hato Hone St John (St John Ambulance) – a registered charity in New Zealand providing ambulance services and first aid to those in need.

• For Local Payments, total account balance(s) below $1.00 will be donated.
• For Overseas or Currency Payments, total account balance(s) below $10.00 (NZD equivalent) will be donated.

To avoid low balances being donated to charity, for interest bearing accounts you are best to action your transfer on the 1st of the month.

Courtesy note, should HSBC NZ will make the charitable donation (on its customers’ behalf) you will be unable to seek a tax credit for your donation. HSBC NZ will also not be seeking a tax credit for the donation. For further details on donation tax credits, please visit the Inland Revenue Department website at ird.govt.nz.

Please refer to our Account closure via Internet Banking guide for the step-by-step process flow.

2. Send us a Secure Message via our Personal Internet Banking platform, selecting the “Account Closure” option from the drop-down menu; or

3. Complete the Account Closure Request Form in person at our HSBC Auckland Branch or you can mail it to us.

• Please refer to our Account Closure Guide for more details and step-by-step instructions for each of these options.

• Some of our customers have HSBC accounts in other countries.  It may be an option for you to open a New Zealand dollar account in that other market and transfer the funds there.
• Or, if available, you may be able to utilise the services of HSBC in your country to open an HSBC account in a different market entirely and move the funds there.

• If you have any funds remaining in your account, you can send these to your new account via Personal Internet Banking at any time, as we cannot close your account(s) if they have any credit balance.
• However, if you have provided us with your other/new bank account details and saved these as a New Payee at the time you requested your accounts to be closed, we will pay you the remaining funds as soon as possible.
• Please note, should you transfer your funds yourself via Personal Internet Banking with the intent to close your account(s), please be advised that balances remaining in your account(s) below NZD1.00 or foreign currency equivalent will be donated to Hato Hone St John (St John Ambulance).

• No. We will ensure you are paid out any accrued interest before we close your account.

• Your account(s) will need to be closed as part of the wind down, so we encourage you to find another financial services provider for your transactional banking requirements, transfer all your available funds across and close your HSBC account(s).
• The easiest way for you to achieve a seamless transfer would be to transition to another financial services provider before more of our services and functionality are withdrawn as part of the wind down process.
• Please note, if your account(s) is currently dormant or unclaimed (and we have not transferred the balance to the IRD), you can request that your account(s) be reactivated in order for you to transfer your funds out to your new financial services provider.
• If your account(s) remain dormant or unclaimed, we will try to contact you to advise of our intention to close your account(s). If we do not hear from you within the specified timeframe, we will treat your account(s) as unclaimed and act in accordance with our Terms and Conditions and the New Zealand Unclaimed Money Act, wherein any funds will be transferred to the New Zealand Inland Revenue Department.
• To request your account(s) to be reactivated, you can send us a Secure Message via Personal Internet Banking or contact our Contact Centre on 0800 028 088 within New Zealand, or +64 9 368 8557 if calling from overseas (noting international toll charges may apply), and they will redirect you to the appropriate team.

• We are now sending formal requests to our customers asking them to close their account(s) by a specified closure date.

• Please note, if your account(s) is currently dormant or unclaimed (and we have not transferred the balance to the IRD), you can request that your account(s) be reactivated in order for you to transfer your funds out to your new financial services provider.
• To request your account(s) to be reactivated, you can send us a Secure Message via Personal Internet Banking or contact our Contact Centre on 0800 028 088  within New Zealand, or +64 9 368 8557 if calling from overseas (noting international toll charges may apply), and they will redirect you to the appropriate team.

• In the absence of receiving any instruction from you by the requested closure date, we will treat remaining balances as unclaimed and act in accordance with our Terms and Conditions and the New Zealand Unclaimed Money Act.
• Balances remaining in your account(s) of NZD1.00 or less (or foreign currency equivalent) will be donated to Hato Hone St John (St John Ambulance) – a registered charity in New Zealand providing ambulance services and first aid to those in need.
• Balances remaining in your account(s) of NZD1.01 or more (or foreign currency equivalent) will be transferred to the New Zealand Inland Revenue Department (IRD).
• In line with the IRD’s procedure, amounts of NZD100.00 or less (or foreign currency equivalent) are not captured on the IRD’s unclaimed money register. As a result, you will not be able to claim values below this amount from the IRD.
• Please visit www.ird.govt.nz for further details on the Unclaimed Money procedures.

• Our Relationship Managers will continue to support customers throughout this wind-down process.
• If you can’t reach your Relationship Manager, please refer to the initial communication we shared with you for the best contact details for all of your queries and requests relating to the wind-down.
• If you are still unsure who can help you, please contact our Contact Centre on 0800 028 088 within New Zealand, or +64 9 368 8557 if calling from overseas (noting international toll charges may apply), and they will redirect you to the appropriate team.

• Your Premier status is sponsored by an HSBC market, typically where you have most of your banking products and services.
• If your Premier status is sponsored by an HSBC market outside of New Zealand, you will retain your Premier status.
• If your Premier status is sponsored by New Zealand, but you are also Premier qualified in another HSBC market, you will also retain your Premier status (and your sponsoring market will automatically update).
• However, if your Premier status is sponsored by New Zealand, and you are not Premier qualified in any other HSBC market, we will offer you a Premier status exemption for one year. This exemption will give you time to connect with another HSBC market of your choice and understand their Premier qualifying criteria.
• We suggest that you refer to the other HSBC market’s website for details on their Premier eligibility requirements. After 30 June 2024, your Premier status may be withdrawn if you have not met any of these requirements.

• We understand that for some customers, there may be reasons why they cannot move to another provider just yet. For example, a relationship breakdown or loss of employment.
• We are committed to supporting all of our customers through this wind-down process and will endeavour to find suitable solutions, where needed.
• Please talk to your Relationship Manager (or call our Contact Centre, who will transfer you through to a Relationship Manager) as soon as possible to discuss options.

• We suggest that you visit the Reserve Bank of New Zealand (RBNZ) website for details of the banks registered in New Zealand: https://www.rbnz.govt.nz/regulation-and-supervision/cross-sector-oversight/registers-of-entities-we-regulate/registered-banks-in-new-zealand
• This website will provide you the details of all the registered banks, along with their registration date and credit ratings. You will also be able to click on the name of the bank to be redirected to their website, where you can then search for “open account from overseas” to find the information relevant to you.
• Although we cannot recommend a specific bank for you to engage with, there are currently 27 registered banks in New Zealand and the majority allow for bank accounts to be opened from overseas.
• Please note that some banks will require you to physically be in New Zealand in order to fully activate the account. Each of the banks will have account opening requirements including provision of identity documents, such as a certified copy passport and certified proof of address. However, please note that each bank may have specific requirements which they will detail as you engage with them or may be set out on their website.

• If you would like to share feedback or make a formal complaint, please refer to our Customer Feedback and Complaints page for details on how to do this.

• At the time of announcement, we continued to explore options, such as a sale, which we have now been able to achieve.
• The agreement with Pepper Money to acquire our mortgage portfolio was subsequent to our announcement to wind down.
• This decision was made after careful consideration and will ensure our home loan customers have continued support within New Zealand.

• Pepper Money is one of Australia and New Zealand’s leading non-bank lenders, and is listed on the Australian Securities Exchange (ASX:PPM).
• It was established in 2000 as a specialist residential home loan lender in Australia with a focus on providing flexible home loan options to borrowers.
• Pepper Money today has a broad product offering of residential home loans, asset finance, commercial real estate and novated leases in Australia and residential home loans in New Zealand.

• We have entered into a Sale and Purchase agreement with Pepper Money, who has taken over our mortgage business.
• The transfer of your home loan(s) to Pepper Money was completed on Friday 1 December 2023 and from Monday 4 December 2023 you will manage your home loan(s) with Pepper Money.

• Your loans have transferred to Pepper Money on the same interest rate that you were on with HSBC, regardless of whether your loan is on a fixed or floating rate.
• Pepper Money’s current interest rates for new customers can be found on their website here: peppermoney.co.nz/home-loans/buying-a-home¹.
  
• If, in future, Pepper Money were to increase or decrease interest rates, customers on floating rates would be subject to this change. Customers will receive notification in relation to any changes in interest rates.

• If your loan had an existing discount, it will continue to apply until any expiry date.
• However, the wind-down discount of 1.50% p.a. will no longer apply for new rollovers from 1 December 2023.
• Before your existing discount or fixed rate is due to expire, Pepper Money will contact you at least 30 days prior to the expiry date outlining what interest rates they can offer at that time.

• To ensure you can make your loan repayments, you will need to set up a new Direct Debit Authority (DDA) with Pepper Money, authorising them to debit your chosen servicing account. 
• Please visit Pepper Money’s website at peppermoney.co.nz/direct-debit¹ and complete the online form to set up your DDA.
• The online DDA form will ask you some basic questions, such as your name and your bank account number you’d like Pepper Money to debit in order to make your loan repayments. It should take you no more than 5 minutes to complete.
  

• We encourage you to use a New Zealand bank account with another financial services provider as your servicing account, since your HSBC NZ account(s) will eventually be closed as part of the wind down of our deposit business. 
• However, if you do not yet have alternative banking arrangements in place, you may direct the DDA to HSBC, which will be limited to a period of two months.
  
• Before your HSBC servicing account closes, it is your responsibility to advise Pepper Money of the new NZ bank account to be used for your DDA so that you don’t default on any repayments.  After 4 December 2023, you will be able to advise Pepper Money of your new DDA over the phone.

• All customers whose loans have transferred to Pepper Money will receive a welcome letter or email reconfirming their payment details, due date and frequency. After Monday 4 December 2023, they’ll also be able to check these details online after they’ve set up their online account with Pepper Money.
• For customers paying interest only, or those who have a revolving credit loan, their interest charge date and repayment date will change from the last day of the month to the first business day of the month.
• All other customer’s direct debit frequencies and next repayment date will remain the same as when their loan is transferred across from HSBC.

• If you did not set up your DDA before 1 December 2023, you risk defaulting on your loan repayments and incurring penalties with Pepper Money.
• Please note, if you continue to default on your loan repayments, this could lead to foreclosure on your property.
• Please contact Pepper Money directly should you have any questions or would like to discuss payment options.

• The limit(s) have transferred across to Pepper Money. However, the credit balance(s) have been transferred to a Transactional Account held with HSBC NZ. 
• If you do not have a Transactional Account, HSBC will open one for you, at no cost to yourself, to receive the amounts debited from your RCM(s). We will advise customers of their new account number in the communications shared after the transfer date.
• This new account will be added to your Personal Internet Banking platform, if applicable, so you can access your funds after the transfer.

• All Automatic Payments from your RCM have transferred to Pepper Money.
• However, for any Direct Debits you had loaded against your RCM, please ensure you advise your vendor(s) (i.e., the initiator(s) of the Direct Debits) to update your DDA with them to use your new debit servicing account number.

• For any customer whose home loan(s) have transferred to Pepper Money, all historic loan statements dating back 7 years have also be transferred to Pepper Money as part of the transfer. These statements will be made available to you upon request.
• For any customer whose home loan(s) did not transfer to Pepper Money (i.e. were discharged before the transfer date), the historic statements will remain with HSBC for up to 7 years after the closure date.
• Please contact us on 0800 028 088 within New Zealand, or +64 9 368 8557 if calling from overseas (noting international toll charges may apply) if you want to order historic statements (noting fees may apply), or visit our website at www.hsbc.co.nz/help/contact-us/ for all of our contact information.
  

• The fees and charges applicable to your loan(s) will remain unchanged as detailed in your loan agreement and terms and conditions.
• Pepper Money will publish a fees and charges table on their website to ensure customers understand their pricing structure.
• Customers who choose to refix their loan after the transfer to Pepper Money will migrate to Pepper Money’s loan agreement and fee schedule at that time.

• For our customers in financial hardship, any existing arrangements will remain in effect.
• We are committed to helping our customers manage their financial position.
• Please talk to your Relationship Manager (or call our Contact Centre, who will transfer you through to a Relationship Manager) as soon as possible to discuss options.

• For HSBC NZ, please visit our website for details on sharing feedback and complaints: https://www.hsbc.co.nz/help/feedback-and-complaints/
  You can also make a formal complaint to the Banking Ombudsman:
  The Office of the Banking Ombudsman
  PO Box 25-327, Featherston Street, Wellington 6146
  Telephone: (04) 915 0400. Freephone: 0800 805 950
  Email: help@bankomb.org.nz
  Website: https://www.bankomb.org.nz
• For Pepper Money, please visit their website for details on sharing feedback and complaints: www.peppermoney.co.nz/complaints-and-feedback¹
  You can also make a formal complaint to Financial Services Complaints Limited:
  Financial Services Complaints Limited
  Level 4, 101 Lambton Quay, Wellington 6011
  Telephone: 04 472 3725. Freephone: 0800 347 257
  Email: info@fscl.org.nz
  Website: http://www.fscl.org.nz