HSBC is probably the worst high st. bank to have a foreign currency account with. I closed mine down last week as they insisted on a 1% euro cash handling charge.
When I queried as to how they could justify this chage, their retort was that it took "time to count and process the euro cash" and hence the charge.
In light of the fact that I deposited 20k euros made up of only 40 notes (each of 500 euro denomination), I am left in no doubt these guys are lazy good for nothings!
More so they charge about 4 euro a month to maintain the account.
I just opened one up with Barclays - no handling nor monthly charge. I'm not sure if the £50k gaurantee still applies.