Difference between HSBC Cash ISA and Cash e-ISA?

ian-d

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Before I ask HSBC themselves, does anyone know the difference between HSBC's two ISA offerings? Cash ISA and Cash e-ISA?

I've had a Cash ISA with them since they began, and have put the maximum in each month, yet the interest rate is 4.65 (upto £15k) / 5.13 (£15k+), compared with the Cash e-ISA rate of 6.08.

Am I missing something, could I ask HSBC to transfer me over to achieve the better rate? They never mentioned this when I had a review a few weeks ago!

jonesMUFCforever

I would imagine that the E- one is for online/telephone transactions only.

As it is online no transactions allowed in branch should mean a slightly better rate as the cost base is lower.

Aegis

ian-d wrote: »

Before I ask HSBC themselves, does anyone know the difference between HSBC's two ISA offerings? Cash ISA and Cash e-ISA?

I've had a Cash ISA with them since they began, and have put the maximum in each month, yet the interest rate is 4.65 (upto £15k) / 5.13 (£15k+), compared with the Cash e-ISA rate of 6.08.

Am I missing something, could I ask HSBC to transfer me over to achieve the better rate? They never mentioned this when I had a review a few weeks ago!

They should have mentioned that this year's deposit could go to the higher-paying e-ISA. They can't transfer the old balance for you because it only accepts new money, but if you've contributed this year following a review where it wasn't mentioned, you should kick up a fuss and try to get this year's contributions into the better paying account.

1618

Hi i have had similar problems with HSBC which has resulted in me leaving after 30 Years,i moved my ISA to TSB when they were fixing @ 6,5%.They have become very good at the little dirty tricks game,we still have considerable funds with them and only yesterday i have had another difference of opinion regarding funds in there on line saver account.I had a telephone call from a sales consultant last week asking if i would make an appointment to see their advisors regarding better paying accounts,he quite nicely forgot to tell me about the new investment i year bond paying 6% interest when i declined the meeting.I am still a premier customer and regular receive calls from them asking why we have moved funds from them ! they seem somewhat put out when you advise them their rates are not copetative in todays market

ian-d

Well I've just sent them a message asking why, and seeing if they will transfer it before I transfer out of HSBC! What annoys me is that I've just done a calculation of the interest received, and I'm not sure I'm even receiving the preferential rate I should be on the standard ISA account! Forgive me if I'm wrong but isn't it as simple as taking your balance, calculating the interest over a year, then dividing it by 12 months?

Aegis

ian-d wrote: »

Well I've just sent them a message asking why, and seeing if they will transfer it before I transfer out of HSBC! What annoys me is that I've just done a calculation of the interest received, and I'm not sure I'm even receiving the preferential rate I should be on the standard ISA account! Forgive me if I'm wrong but isn't it as simple as taking your balance, calculating the interest over a year, then dividing it by 12 months?

It's an ok approximation, but for only one or two months the actual interest will be slightly lower than that calculation, while in the last couple of months it will be slightly higher.

If you divide the gross interest by 12, that's what you should get.

UproarUK

ian-d wrote: »

Before I ask HSBC themselves, does anyone know the difference between HSBC's two ISA offerings? Cash ISA and Cash e-ISA?

I've had a Cash ISA with them since they began, and have put the maximum in each month, yet the interest rate is 4.65 (upto £15k) / 5.13 (£15k+), compared with the Cash e-ISA rate of 6.08.

Am I missing something, could I ask HSBC to transfer me over to achieve the better rate? They never mentioned this when I had a review a few weeks ago!

They wouldn't allow me to transfer any funds from my existing ISA into an e-ISA as it only accepts new money, so I transferred my existing ISA to A&L and opened a Tax Haven ISA with Barclays for this year.

ian-d

Well I've asked the question of them, and they've said they will see what they can do to resolve...i think they have treated my request as a complaint so have a specific team reviewing. Its an easy decision for them, either retain my business by giving me the higher rate, or I take the money elsewhere. Will report back.

Aegis

ian-d wrote: »

Well I've asked the question of them, and they've said they will see what they can do to resolve...i think they have treated my request as a complaint so have a specific team reviewing. Its an easy decision for them, either retain my business by giving me the higher rate, or I take the money elsewhere. Will report back.

Hopefully they'll see sense on this one. Unfortunately the average counsellor you meet is unlikely to know the intricacies of the ISA rules, specifically that funds can be removed and invested elsewhere if a mistake was made by the bank, or once per year for a new money deposit anyway (called a self transfer, or something to that effect)

genny

It's very irritating, I have one of these original cash ISAs, and can't move it into an eISA, so it's just sitting there earning bad interest. Moving it out soon, not impressed with HSBC, will never bank with them again.

Are the transfers smooth from HSBC? I don't want any screw-ups and loosing the ISA status when I ask for a transfer from another company.

johnaspley

ian-d wrote: »

Before I ask HSBC themselves, does anyone know the difference between HSBC's two ISA offerings? Cash ISA and Cash e-ISA?

I've had a Cash ISA with them since they began, and have put the maximum in each month, yet the interest rate is 4.65 (upto £15k) / 5.13 (£15k+), compared with the Cash e-ISA rate of 6.08.

Am I missing something, could I ask HSBC to transfer me over to achieve the better rate? They never mentioned this when I had a review a few weeks ago!

From what I remember they won't let you transfer your Cash ISA into an e-ISA. Daft I know but I think that's what they'll tell you. I had my ISA with them too but had to move it to a Barclays Cash Haven ISA as HSBC wouldn't transfer it for me into their own E-ISA, despite me being staff!