TL;DR
First Direct is a wholly owned subsidiary of HSBC UK Bank plc. Deposits held with both brands count toward a single FSCS limit of 85,000 pounds. First Direct operates exclusively online and by telephone with no branch network. It consistently outperforms HSBC on customer satisfaction surveys. HSBC suits customers who need branches, international banking or a broader product range.
Last reviewed: June 2026
HSBC and First Direct are two of the most recognised names in UK retail banking, but they serve quite different customer needs despite sharing the same parent organisation. Understanding the structural relationship between them, and the practical differences in product, service and pricing, is essential before opening an account with either.
HSBC UK Bank plc is the UK retail and commercial banking subsidiary of HSBC Holdings plc, one of the world's largest banking and financial services organisations. First Direct was launched in 1989 as the UK's first telephone-only bank, making it a pioneer in branchless banking. It is now a wholly owned subsidiary of HSBC UK Bank plc.
KEY FACTS
- First Direct is a wholly owned subsidiary of HSBC UK Bank plc. Both are separate from HSBC Holdings plc (the global parent).
- FSCS protection is shared: deposits with HSBC UK and First Direct count toward a combined limit of 85,000 pounds per person.
- First Direct operates with no branch network, accessible by phone 24/7 and online.
- First Direct's 1st Account has no monthly fee and a 250 pound interest-free overdraft for qualifying customers.
- HSBC UK has approximately 40 million customers globally; First Direct has around 1.7 million UK current account customers.
- First Direct regularly tops Which? customer satisfaction surveys for current account providers.
The FSCS shared pot: what it means in practice
Because First Direct is a subsidiary of HSBC UK Bank plc, both brands are part of the same FCA-registered institution for FSCS purposes. This means deposits held across HSBC UK and First Direct accounts are aggregated and assessed against a single FSCS protection limit of 85,000 pounds per eligible person.
A customer with 60,000 pounds in a First Direct savings account and 30,000 pounds in an HSBC UK current account has a combined 90,000 pounds with a single FSCS-registered institution. Only 85,000 pounds is protected. This is a critical consideration for anyone holding significant savings across both brands.
To access separate FSCS protection, deposits would need to be held with a legally distinct institution, such as Lloyds Bank, NatWest, Barclays or a building society. Each has its own FCA registration and separate 85,000 pound limit.
HSBC Holdings plc (the global parent) has a separate FSCS registration from HSBC UK Bank plc. Deposits held in HSBC Expat accounts, which are booked offshore under the HSBC Holdings structure, are not covered by FSCS at all. This is a separate product from HSBC UK's domestic offerings.
First Direct: accounts and features
First Direct offers a straightforward product range centred on its 1st Account current account, savings accounts (Regular Saver and linked easy-access savings), personal loans and mortgages (arranged through HSBC UK's mortgage infrastructure). There are no tiered premium current account packages, no monthly fees on the standard account, and no complex product matrix.
The 1st Account pays no in-credit interest but offers an interest-free arranged overdraft of 250 pounds for eligible customers, with arranged overdraft interest of 39.9 percent EAR on amounts above that threshold. First Direct is consistently rated among the top current accounts for customer service by Which? and Ipsos MORI's Financial Research Survey.
First Direct's Regular Saver has been one of the most competitive regular savings rates on the market in recent years, at 7 percent AER fixed for 12 months on deposits of up to 300 pounds per month. The account is available to existing First Direct current account holders only. Terms are subject to change and should be verified at firstdirect.com before applying.
First Direct operates with no physical branches. All banking is conducted online at firstdirect.com or via the mobile app, or by phone to the 24/7 customer service team on 03456 100 100. The lack of branch access is the primary practical limitation for customers who regularly handle cash or need face-to-face banking.
HSBC UK: accounts and features
HSBC UK offers a broader product range than First Direct, including tiered current accounts (Bank Account, Advance Account, Premier Account), a significant branch network across the UK, full international banking capabilities, and a range of investment products through HSBC Global Asset Management.
HSBC Premier is aimed at customers with a minimum annual income of 75,000 pounds or who hold a mortgage or investment product with HSBC. Premier customers receive access to relationship managers, international account services and preferential rates on selected products. Premier is not available through First Direct.
For customers who need to send international payments or hold foreign currency, HSBC's Global Money account allows multi-currency holding and international transfers with no HSBC fees (though correspondent bank fees may apply). First Direct does not offer a dedicated multi-currency account.
HSBC UK also offers Kinetic, its SME-focused business banking account, and a range of commercial banking products that are not available through First Direct.
Customer satisfaction: how the two brands compare
First Direct consistently outperforms HSBC UK on customer satisfaction metrics. In the FCA's Banking Service Quality data published in 2025, First Direct was rated the top provider for personal current account service quality, with 86 percent of customers stating they would recommend the bank. HSBC UK's score was significantly lower, reflecting the challenges of servicing a much larger and more diverse customer base through a traditional branch network.
The difference in satisfaction scores is partly structural: First Direct has a self-selected customer base of people who are comfortable with digital and telephone banking and who actively chose a branchless model. HSBC UK serves a much wider demographic including customers who may have defaulted to HSBC due to geographic availability rather than active preference.
Which should you choose?
First Direct is the better choice for customers who are comfortable with digital-first banking, value accessible 24/7 phone support, and want a simple no-fee current account with consistently high customer service ratings. It suits people who rarely or never need in-branch services and who want a regular saver product with a competitive rate.
HSBC UK is the better choice for customers who need in-branch access, international banking capabilities, a premium relationship banking service (Premier), or a broader range of investment and commercial products. It also suits customers who need to bank internationally or who hold significant assets that benefit from global banking relationships.
Customers holding significant deposits should be aware that splitting funds between HSBC UK and First Direct does not provide additional FSCS protection due to their shared legal entity. Diversifying across legally separate institutions is the appropriate strategy for balances above 85,000 pounds.
Frequently asked questions
Do HSBC UK and First Direct share FSCS protection?
Yes. Because First Direct is a subsidiary of HSBC UK Bank plc, deposits held across both brands count as held with a single institution for FSCS purposes. The combined protection limit is 85,000 pounds per eligible person.
Can I switch from HSBC to First Direct using CASS?
Yes. The Current Account Switch Service (CASS) takes seven working days and redirects all payments automatically. However, note that switching between HSBC and First Direct does not provide separate FSCS protection, since both are the same legal entity. Switching for other reasons, such as service quality or the Regular Saver rate, is entirely reasonable.
Is First Direct part of HSBC Group?
Yes. First Direct is a wholly owned subsidiary of HSBC UK Bank plc, which is itself a subsidiary of HSBC Holdings plc. For FSCS purposes, the relevant entity is HSBC UK Bank plc, under which both HSBC UK and First Direct are registered.
Does First Direct have any branches?
No. First Direct operates exclusively by telephone (03456 100 100, 24 hours a day) and online at firstdirect.com. Customers who need in-branch cash handling or face-to-face services should consider whether a branchless bank suits their needs before switching.
