HSBC to launch new 8% regular savings account

Margaret_Millne

Margaret_Millne wrote:

Well I don't actually have my salary paid in each month, as my Pension is paid annually, and my salary is from a private company which comes in in fits and starts. I logged on and applied on line, and it didn't actually ask any questions about salary. Presume they can see from my statements that there is always cash coming and going, and I always make sure there is enough in to cover standing orders and direct debits.

Or they may just contact me later to say I can't have one after all.

Well the Regular Saver now appears on my on-line banking, with a balance of £250, so I guess I've got an account. Staff in the branch, who know all about how our finances work, told me husband could open one as well - all you need is a current account.

Paul_Varjak

Astonishing that this thread has elicited so many viewings and replies!

You can expect this account to give you just 86p more a week than keeping your money in a 5% account - because of the savings limits!

If I had a current account with HSBC I might use it, but I certainly wouldn't swap my Halifax current account (paying 3.07%) for an HSBC current account paying 0.1%! That will gobble up most (or all) of the 86p/week I make on the Regular Saver Account!

I think I will concentrate on ways of saving money, rather than wasting time effort and money (not to mention the hassle of transferring to the HSBC)!

Paul_Herring

Paul_Varjak wrote:

You can expect this account to give you just 86p more a week than keeping your money in a 5% account - because of the savings limits!

.. assuming of course you don't pay tax on your savings. I worked out upthread that I'd be getting 52p more a week.

Paul_Varjak

Paul_Herring wrote:

.. assuming of course you don't pay tax on your savings. I worked out upthread that I'd be getting 52p more a week.

You're right of course - proves my point and what a waste of time reading this thread is!

thor

Paul_Varjak wrote:

Astonishing that this thread has elicited so many viewings and replies!

You can expect this account to give you just 86p more a week than keeping your money in a 5% account - because of the savings limits!

If I had a current account with HSBC I might use it, but I certainly wouldn't swap my Halifax current account (paying 3.07%) for an HSBC current account paying 0.1%! That will gobble up most (or all) of the 86p/week I make on the Regular Saver Account!

I think I will concentrate on ways of saving money, rather than wasting time effort and money (not to mention the hassle of transferring to the HSBC)!

Every little bit helps! Although I have to admit if another bank came out tomorrow with a 9% rate I probably wouldn't bother switching my current account either. As it is I guess I'm lucky I don't have to and as I said previously I only need to keep £250 in my current account for 3-4 days a month until the standing order takes it out.

Paul_Herring

thor wrote:

Every little bit helps!

Depends on how you view your returns from doing this I treat mine somewhat like a wage. The way I see it, the hassle (and hours!) I'd need to put in to move all my DD's etc to be eligiable for the 8% (over 5%) is certainly not worth 52p/week.

I could get that gain by (e.g.) not buying a paper one day a week. I could quadruple it by drinking one less pint. By not eating lunch one day a week... the list goes on.

The effort needed simply isn't justified by the gain (and as others have pointed out the lack of interest on the current account in question)

philljp

Sorry for being stupid, but on £250 how much interest would they give you in one month?

Walletwatch

£1.70 a month for a non-tax payer on £250 - keep in mind that the interest is not payable monthly and this amount progressively increases every month - 1.7 for the first month, 1.7*2 = 3.4 for the second month and so on.

philljp

Walle****ch wrote:

£1.70 a month for a non-tax payer on £250 - keep in mind that the interest is not payable monthly and this amount progressively increases every month - 1.7 for the first month, 1.7*2 = 3.4 for the second month and so on.

ok, so at what stage do you get paid the interest? Does the money have to stay in the account a whole year until it gets the interest paid? and do they pay the interest every April 5th?!

philljp

Also just read this:

http://www.firstdirect.com/saveinvest/cash_isa.shtml

First Directs 6.25% ISA. It states they pay the interest into your account monthly. So it all depends on the ISA then?