HSBC 6% credit rate worth or not?

iamchrisli

HSBC's bank account plus (fee based) gives 6% for up to 2500 in credit.

The downside is it charging fee at least around 12pounds.

Any ideas about whether it worth to try?

_Andy_

Not unless you need/want the annual travel insurance, etc., that comes with the account, or are about to take a mortgage with them and want the £100 cashback.

oldwiring

I did some sums with Excel. assuming the intial discount was applied for 6 months. the monthly charge was taken in advance and that the interest was paid net of tax at the nd of each month. And remember that balances in excess of £2500 do not get interest! You will always wffectivley be paying a fee by the diminution of your balances. I have given some examples below.

bal ann net cost
125 134.76
250 128.79
500 116.65
1000 92.99
1500 89.14
2500 21.42
2530 20.64 (the minimum effective charge for the provided benefits).
As Andy says it all depends.

going2die_rich

A&L do a 6% current account and I believe it's free so have a look at them