HSBC is implementing a range of initiatives aimed at small businesses, worth £80 million a year and benefiting customers annually by an average of £148.

On January 1, 2003, HSBC business customers with a turnover of up to £25 million began receiving credit interest of 2.5 percent below base rate on their current accounts.

Additionally, some 166,000 clubs, charities and association customers were given unlimited free money transmission1.

Nearly 260,000 of HSBC's business savers were also converted to a new instant access savings account, Business Money Manager.

This account pays higher interest rates the longer customers leave their money in the account and the more they deposit.

And soon, new start-up customers will also receive credit interest and 12 months free banking as part of a package of services to support new businesses through their critical early months.

John Rendall, Head of Business Banking at HSBC Bank in London, said: "As well as paying credit interest of 2.5 percent below base rate, which is worth £50 million to our customers, we are committing over £30 million a year to a series of changes which go well beyond last year's Competition Commission's recommendations."

HSBC has more than 540,000 business customers and John says that the majority of customers will benefit.

"The vast majority of our customers will be better off as a result of the changes. We have also made our services more straightforward and transparent.

For example, customers did not have to apply to receive interest on their accounts. Where they are clearly better off, we automatically paid interest".

"Additionally, none of these changes alter our continuing commitment to the distinctive way of doing business that's behind our success in the small business market.

"We will continue our policy of keeping experienced and empowered managers in the front line across our branch network. Neither does it change our strategy of giving customers access to our services in the ways that suit them best be it local branch, phone or internet."

With increasing numbers of customers switching to HSBC, independent surveys have recognised the bank's different approach.

The Competition Commission found that HSBC provides the highest quality of service and some of the most competitive prices in the market.

In November 2002, clients of the UK 200 Group, the country's largest group of accountancy firms, voted HSBC the best bank for business for the third time running.

www.hsbc.co.uk