HSBC to launch new 8% regular savings account

Walletwatch

Wonder if it is ok if I just assure the bank that I will bring in a minimum amount every month? Don't really want to shift my salary account just for the sake of this, but don't mind looking at reasonable conditions like depositing £1000-2000 p.m.

lswwong

Paul_Varjak wrote:

The headline 8% rate sounds good until you relaise that is must be funded from a current account paying just 0.1%!

Surely better to get Halifax 7% Regular Saver and fund from a Halifax Current Account paying up to 3%!

Good points from Paul. The Halifax Regular Saver account does not require the saver to have a current account with them, nor to have his/her salary paid into one such. Personally, I can't be bothered to trouble my employer to change my bank details: poor things will get confused! However, and this hinges on the T&Cs for the forthcoming HSBC 8% account, what if I were to transfer a fixed sum regularly from my normal main current account to the HSBC current account, and then to have that sum transferred to the HSBC regular savings account? HSBC probably won't allow it, arguing that this is not an income situation, but I would be interested to see what happens. So eyes are peeled for tomorrow's launch!

isasmurf

Observer and Indy newspaper articles on the account.

Kazza242

Paul_Varjak wrote:

The headline 8% rate sounds good until you relaise that is must be funded from a current account paying just 0.1%!

Surely better to get Halifax 7% Regular Saver and fund from a Halifax Current Account paying up to 3%!

This is the reason why I didn't sign up for the 8% account right away. I am in the process of switching my salary over to Cahoot from Barclays, as I'll have more money sitting in my current account from next month and want more interest than barclays' 0.1%.

I'm still not sure that the 8% rate is worth it, especially with them requiring your salary be paid into their current account. I don't mind opening a current account with HSBC, I opened a current account with Halifax last year when I opened their then 6% regular savings account. However, I'm not sure getting my employer to pay my salary into another 0.1% account will be worth it.

It's good that there is healthly competition amongst regular savings account providers. Competition is only good for the customer. Perhaps Halifax will raise the interest rate on their 7% regular savings account to match or better HSBC's rate, like they did when Abbey launched their then 6.5% regular saver. I intend to sign up for another Halifax regular savings account when my existing one matures in early April. A rise in the rate offered by Halifax would be most welcome.

* Wallet watch and Iswwong - HSBC's advisors said they won't accept payments into the account in that way. They insist that a salary or pension mandate must be setup so income is paid directly into their current account.

thor

Well my salary is already being paid into an HSBC current account so I'll be starting up their new regular savings account. The 0.1% savings rate doesn't bother me at all as I transfer my wage out to a proper savings account almost as soon as I get it . I lose interest for a day or two but that's not enough to concern me. Surely this is what all good moneysavers would have thought of doing?

monki_man

WOw this is an amazing offer, considering i already bank with hsbc and put my salary in it. I tend to bung 90% of the dosh into a A&L online saver so its gives me 5.35% gross. Am i right in saying as long as i carry on putting my salary (although this goes to A&L after a few days) and have £250 in credit for my hsbc account i should be ok?

Kazza242

thor wrote:

Well my salary is already being paid into an HSBC current account so I'll be starting up their new regular savings account. The 0.1% savings rate doesn't bother me at all as I transfer my wage out to a proper savings account almost as soon as I get it . I lose interest for a day or two but that's not enough to concern me. Surely this is what all good moneysavers would have thought of doing?

I have always swept out any excess funds in my current account following payday to my Cahoot 5.65% savings account to maximise the interest I earn. I'm just not sure I want to switch my salary to another 0.1% account. If I can setup another Direct Debit mandate so that I can make quicker payments into my Cahoot savings account like I do from Barclays then I might sign up for the HSBC accounts. I guess I have to request the form from Cahoot, which should be straightforward.

I'm looking for another regular saver anyway. My Halifax one matures in April and there's no guarantee that they'll still be offering their 7% regular savings account when I'm eligible to open a new one. The other thing to remember is that Halifax may raise the rate they offer on their regular savings account like they did when Abbey launched their then 6.5% account.

I'll wait until the HSBC account T&C's are available and decide then.

Kazza242

monki_man wrote:

WOw this is an amazing offer, considering i already bank with hsbc and put my salary in it. I tend to bung 90% of the dosh into a A&L online saver so its gives me 5.35% gross. Am i right in saying as long as i carry on putting my salary (although this goes to A&L after a few days) and have £250 in credit for my hsbc account i should be ok?

Yep. It looks as though the above satisfies the conditions of their account. Though, I'd read the T&C's when they become available before signing up.

monki_man

T&C are out people

http://www.hsbc.co.uk/1/2/personal/savings-investments/savings/regular-saver

Paul_Herring

monki_man wrote:

T&C are out people

http://www.hsbc.co.uk/1/2/personal/savings-investments/savings/regular-saver

Personally, I don't think the extra £27* I'd personally get from this account over stashing the money in ING is worth the hassle of changing my bank details at work for the 2nd time in 4 months

From the Regular Savings T&C:

1.2 You must already have a sterling HSBC Bank Account, Basic Bank
Account or Amanah Bank Account (“Bank Account”) with us into which
your salary or regular retirement income is paid before you can apply
for a RS. You must continue to hold a Bank Account and pay your salary or regular retirement income into it for the duration of your RS.[Emphasis theirs]

*based on average £1500 balance over the year x (8%-5%)*60% for tax