Is this a stupid idea?

freeasabird

I'm thinking of changing my basic HSBC account to a current account advance which allows you access to a regular savings scheme that currently pays 8%. (I'm going to check this out again because it sounds too good to be true). After that, I thought I'd drip feed the money into an ISA. As ISA's are not paying that much these days. Is this a good idea?

Fly_Baby

It is a bad idea. Unless they've changed the terms and conditions recently, the HSBC regular saver has always been an account that allows you saving up to £250 per month. I had this account before and at 8%, the net interest you get upon maturity in one year's time is around £130. With the monthly advance account fee, you will be at a loss.

Lokolo

All you need to do to get current account advance is to deposit £500 a month into the account and it will automatically upgrade (takes 6 months though...)

Lokolo

Fly_Baby wrote: »

It is a bad idea. Unless they've changed the terms and conditions recently, the HSBC regular saver has always been an account that allows you saving up to £250 per month. I had this account before and at 8%, the net interest you get upon maturity in one year's time is around £130. With the monthly advance account fee, you will be at a loss.

Thats Current Account Plus not Advance.

Advance is free but requires a minimum of £500 in each month.

Fly_Baby

Lokolo wrote: »

Thats Current Account Plus not Advance.

Advance is free but requires a minimum of £500 in each month.

Oh, right, my mistake. So they did change the rules then. The last time I they offered me to upgrade to the Advance they said it came with a monthly fee.

Nothing bad with the 8% savings account but you are only allowed to deposit up to £250 every month. So the overall earnings will not be as high as they may seem.

freeasabird

I want a second bank account to pay for bills etc. so will probably pay in about £500 anyway. I just thought that the regular saver would be a good way of using any spare money and then passing it to an ISA. Thanks for your replies.

Aegis

Fly_Baby wrote: »

Oh, right, my mistake. So they did change the rules then. The last time I they offered me to upgrade to the Advance they said it came with a monthly fee.

Nothing bad with the 8% savings account but you are only allowed to deposit up to £250 every month. So the overall earnings will not be as high as they may seem.

The advance account has never had fees, so I assume someone messed up their terminology when offering you the account!