Rubbish interest from an old HSBC "Cash ISA" product - can I reclaim?

Dave85

Hi all,
I have a "Cash ISA" with HSBC which I transfered in last year. Yesterday I realised that the AER on this account is a paltry 0.3% - by the looks of it, they've stopped selling this product, and put better rates on newer accounts.

Obviously I feel a bit !!!!ed off that I've lost £xxx in interest. I'm going to move this to a newer HSBC product (I'm content to stick to 1.74% for security and (usually) decent service HSBC provides), but is there anything I can do about the lost interest? It seems a little unethical to slash the rate, discontinue the product, but not actually move my account. I'm certain I'm not the first - anyone got any advice, or am I stuck? Any advice gratefully received!

debbie42

This happens regularly: there was a thread recently here on a similar theme. You can't claim any "lost" interest back. It's up to the account holder to keep a watchful eye on such things as the banks are quite happy to let the funds languish at a lower paying rate.

dunstonh

Obviously I feel a bit !!!!ed off that I've lost £xxx in interest.

You haven't lost interest. You just haven't gained more than you could have because you are not in control of your finances. The bank has done nothing wrong legally or within FSA rules. Many would say its morally wrong but it happens all the time across the board with savings accounts and has for decades.

The other thing to note is that many initial rates are higher to "buy" new business. So, play the game in your favour. Move it each time to get the higher rate and dont let it stagnate in the same place.