2 isas at same bank, not allowed to transfer??

allan673

hi, bear with me lol !

i have a cash isa (0.30%) held for 7 year, and a cash e isa (1.75%) held since april 09, both at hsbc.
i wanted to transfer the cash isa balance into the cash e isa as the e isa has a lot better rate. (quite large sum in the cash isa but paying a crap rate).

anyway they say i cant transfer it, only transfers are allowed from other providers.
has anyone actually had an isa transfer by the same provider please? is it legal? wondering why it seems such hard work.

posted in savings forum as i was going to transfer the cash isa to hsbc hidb and ive been told to go to branch and kick off, stating i will transfer both isas to another provider if they wont do it for me.

any thoughts/suggestions please :beer:

Aegis

allan673 wrote: »

hi, bear with me lol !

i have a cash isa (0.30%) held for 7 year, and a cash e isa (1.75%) held since april 09, both at hsbc.
i wanted to transfer the cash isa balance into the cash e isa as the e isa has a lot better rate. (quite large sum in the cash isa but paying a crap rate).

IF's cash ISA is currently 2.5%, so it's better than any of the HSBC instant access offerings for ISAs. You could transfer both existing ISAs into a single account elsewhere.

anyway they say i cant transfer it, only transfers are allowed from other providers.
has anyone actually had an isa transfer by the same provider please? is it legal? wondering why it seems such hard work.

It's definitely legal. As I mentioned before, the reason they don't want you to transfer is because they'll end up paying you a lot more interest if they let you transfer from a 0.3% account to a 1.75% account. As a result they want to make it as difficult as possible for you to transfer internally.

posted in savings forum as i was going to transfer the cash isa to hsbc hidb and ive been told to go to branch and kick off, stating i will transfer both isas to another provider if they wont do it for me.

Not so much kicking off, as that won't get you anywhere. Just insist that if you aren't allowed to transfer your ISA internally, you'll transfer it externally. They ought to be able to help you as a retention offer.

I still think you'd be better moving all of it to a new home though, as HSBC generally aren't that interested in being competitive with savings rates at the moment (there are a couple of notable exceptions, but the fixed rate ISA will reduce to the 0.3% you already have after one year, for example).

allan673

thanks so much, to be honest ive only ever banked/saved with hsbc.
maybe it is time for a change? i used to withdraw the interest into an account i use to pay bills, used to get £60 per month, now i get £4 from the cash isa. ideally id still like to do this if possible.
if i do swap them both elsewhere do i get a passbook etc or just a statement with account number etc?

with the if isa can you view it online etc?

Milarky

allan673 wrote: »

if i do swap them both elsewhere do i get a passbook etc or just a statement with account number etc?

That entirely depends on the account. Most ISAs don't seem to have passbooks (with most of those being issued from building societies)

McKneff

closed wrote: »

Why not transfer them both out, there are better rates available elsewhere.

http://www.moneyfacts.co.uk/money/savings/4/cash-isas.aspx

That'll teach the burgers:rotfl:

allan673

well i went to hsbc today, they wont allow me to transfer my hsbc cash isa balance into my hsbc cash e isa. (transfers only allowed from other providers). he then started to try and sell me another savings product and the hsbc plus account.but i wasnt interested. all i want is a better interest rate.
im really dissapointed with hsbc to be honest.

im now looking at transfering both isas to another provider. along with another savings account too.

Baldur

allan673 wrote: »

well i went to hsbc today, they wont allow me to transfer my hsbc cash isa balance into my hsbc cash e isa. (transfers only allowed from other providers).

Hardly surprising, as the Terms & Conditions specifically state:

6.8
iii) Transfers in from existing HSBC Variable
Rate Cash ISAs are not permitted.

Their Fixed Rate Cash ISA does not make this specific statement.

allan673

why arnt they permitted though, its beyond me?
they will lose my custom because of this, and i wont be the first.

they would let me transfer it to the 3.25% fixed isa, as long as i paid to be a hsbc plus customer.

Baldur

allan673 wrote: »

why arnt they permitted though, its beyond me?
they will lose my custom because of this, and i wont be the first.

they would let me transfer it to the 3.25% fixed isa, as long as i paid to be a hsbc plus customer.

The standard 3% Fixed Rate ISA (unlike the 3.25% rate) doesn't require the applicant to be a Plus or Premier customer.

Lokolo

If you are that desperate. Open up an instant access ISA with another bank. Transfer there. Then transfer back.

The_Enforcer

If you opted to transfer the money out from the HSBC low rate ISA accounts to another ISA provider and then back into a HSBC 3% fixed ISA account, check that there isn't a restriction preventing 'recent' as well as existing customers from opening this account. E.G. I believe FD have such a restriction on 'previous' customers and Egg state that you must not have been a customer 6 months prior to application on selected products.