Dormant account closures, card cancellations among HSBC Malta’s new banking rules

HSBC Malta has informed customers of a series of changes to its banking terms and conditions, including rules governing dormant accounts, credit cards, minimum balances and cheque payments, which will come into effect on 1st January 2027

In an email sent to customers, the bank outlined amendments affecting personal and micro-enterprise accounts, although it noted that not all changes will apply to every customer.

Among the changes is an update to the bank's right of set-off, allowing HSBC to use funds held in a customer's accounts, including across different currencies, to settle money owed to the bank.

The bank may also request supporting documentation when customers seek to update their addresses, with changes only processed once the documents have been received and verified.

Under the revised conditions, HSBC will provide at least 30 days' notice before an account becomes dormant.

If a customer fails to respond within 60 days of the account being classified as dormant, the bank may transfer its balance to another active account held by the same customer and close the dormant account. Transfers will only be permitted between accounts of the same type, either personal or business.

Where all of a customer's personal or business accounts are dormant, HSBC may transfer the balances to a suspense account before closing them, subject to at least 60 days' written notice.

The bank clarified that funds transferred to suspense accounts will remain the customer's property and can be reclaimed at any time.

Changes to cheques and card conditions

From January 2027, cheques must be issued for a minimum of €50, while their validity will be limited to three months. Cheques will also no longer be encashed directly and must instead be deposited into the payee's account.

Meanwhile, customers will be required to activate newly issued cards within 90 days. Cards that remain inactive or unactivated for 13 months may be cancelled.

Automatic card renewal will require at least one transaction before the final two months preceding the card's expiry.

The bank is also introducing a requirement for credit card holders to maintain an active savings or current account with HSBC.

Other amendments clarify the handling of credit card payments, interest charges and replacement cards.

Minimum balance requirements

For Fusion customers, HSBC clarified that the €200 minimum balance requirement will be calculated across Fusion accounts separately from personal accounts.

Certain exemptions from the minimum balance fee have also been removed, meaning customers who no longer qualify for an exemption may incur the charge.

HSBC said customers can review the revised terms and conditions on its website or request printed copies from its branches.