HSBC Regular Saver account question

Adebisi

I am thinking about setting this account up (my current account, cash e-isa and mortgage is with HSBC) and wonder if it is worth paying the extra charge for the HSBC plus account (£12.95 monthly fee) to get the extra '10% AER/gross fixed for 12 months' or just stay with the standard '8% AER/gross fixed for 12 months'? I will be paying the full £250 per month.

TIA
Adebisi

YorkshireBoy

The additional interest earned will be...

£3,000 x 2% / 12 x 6.5 = £32.50 gross (£26 net of basic rate tax)

ray123

I would personally stick with the 8% deal.
You will be paying £155.40 for their plus account, BUT the TOTAL interest you will gain from the regular saver will be less than that amount (around £120 I would estimate at 10% after tax).

Adebisi

I though as much, my maths skills are not what they used to be. Thanks for the quick response.

Aegis

At £250 per month you'd get about £130 interest after tax at the end of the term on the 10% account. Given that the total annual cost at £12.95 per month would come to £155.40, you'd be better off sticking with the normal account in this case.