Why don't HSBC offer good rates?

Inactive

ian-d wrote: »

Does anyone know if they have any large saver accounts planned, or would even consider a larger rate to me, who's been a positive customer of there's for many many years?

I am in a similar position to you, I have now decided to move some money away from HSBC, to Nationwide, better rates, easy access if required.;)

ManAtHome

My main accounts are with HSBC, secondary accounts with Nationwide for travelling - certainly wouldn't swap them over. HSBC haven't yet asked me to set up "security for 2-year olds" (eg carp like "what's your favourite record/colour/page 3 floozie (made the last one up)", doh! pick one of many, so possibly have to write it down...highly secure) as well as some calculator thingy that may or may not be ever used. Really just waiting for Saga to come up with a Flex equivalent (have already moved from NW to Saga CC).

brookerbabyisababy

Steve_xx wrote: »

What exactly don't you understand? Can you give an example?

HSBC offer the Online Bonus Saver with a rate of 5.25% whereas First Direct offer the Bonus Saver with a variable rate of 4.05%. To me that does not make sense unless the account is old and has not been mistaken been updated. Which doesn't make sense. They really need to launch some new Savings products.

dunstonh

HSBC and first direct operate under two different business models and management.

They really need to launch some new Savings products.

New products are expensive to launch. Usually running into millions, if not billions of pounds. Why launch a new product when you dont need to?

RayWolfe

dunstonh wrote: »

New products are expensive to launch. Usually running into millions, if not billions of pounds.

????
A product manager putting up a new savings account costing a billion pounds to launch, may not see the end of the week in post!

dunstonh

RayWolfe wrote: »

????
A product manager putting up a new savings account costing a billion pounds to launch, may not see the end of the week in post!

Ok, probably not savings accounts but some investments and new products have gone to through the billion mark. However, millions is not an unusual figure for new "minor" product launches.

EalingSaver

I think it has mostly been said - banks aren't going to narrow their margins if they have no need to do so. Simple supply and demand, market forces. So the obvoius conclusion is that e.g. first direct either don't have a business model which is heavily biased round lending, or if they do they currently have plenty of access to money to lend at profitable rates.

I'm a stalwart long standing FD customer, but its been a long long time since I used them principally for anything other than a current account, (dropped their credit card, dropped them as main savings provider etc.). I do have their reg saver @ 8%, and I have a savings account at 4.75% which is basically their as a 'float' for easy transfer to/from my current a/c. But with faster payments in place, even that is going to be less useful.

Lack of a decent savings product hsa long been a source of frustation for me, but its up to them to have the products they need to support their business model. Of course, if the bulk of UK customers were more savvy and fleet footed in getting out of bad savings products and into good ones, that would make a substantive difference to all UK banks. But then with frequent new scare stories about different institutions, that can hardly help, and those seen as solid can reap the benefits by offerring non-competitive rates.

Steve_xx

brookerbabyisababy wrote: »

HSBC offer the Online Bonus Saver with a rate of 5.25% whereas First Direct offer the Bonus Saver with a variable rate of 4.05%. To me that does not make sense unless the account is old and has not been mistaken been updated. Which doesn't make sense. They really need to launch some new Savings products.

They're operating as different units. Similarly HBOS, IF and Bank of Scotland are essentially the same entity but they often have different products. I'm not sure that it matters. You simply choose the product you want.

AndysDad

Jonbvn wrote: »

Only drawback is that their customer service is shockingly poor.;)

I would put it alot stronger than that.Their CS is absolutley appalling.

RayWolfe

That's a VERY interesting point.
Abbey, reasonable rates: appalling customer service.
HSBC, poor'ish rates: superb customer service.
Take your pick. I know that I will never darken Abbey's door again.