HSBC Fixed Rate Cash ISA help!

ian-d

I currently have my ISA money tied up in a HSBC FIXED RATE CASH ISA until May. Can anyone confirm whether I'm able to add £5,340 during the fixed rate term, or do I have to wait until May?

If I can, when May comes around and my money drops into a standard ISA, will I then be able to transfer out to another ISA provider?

What I'm thinking is moving from HSBC's 2.75% rate, to Lloyds 3.6% rate. What I don't know however is whether Lloyds rate (because it is over 2 years) is actually 1.8% annual?

redmalc

I have exactly the same situation as you,i am of the opinion you can open a new tax years isa anywhere you wish to,HSBC has actually dropped the rate for Premier customers from 2.85% to 2.75% i get the opinion they are trying to get rid of good customers.

blueberrypie

ian-d wrote: »

I currently have my ISA money tied up in a HSBC FIXED RATE CASH ISA until May. Can anyone confirm whether I'm able to add £5,340 during the fixed rate term, or do I have to wait until May?

If I can, when May comes around and my money drops into a standard ISA, will I then be able to transfer out to another ISA provider?

What I'm thinking is moving from HSBC's 2.75% rate, to Lloyds 3.6% rate. What I don't know however is whether Lloyds rate (because it is over 2 years) is actually 1.8% annual?

Fixed-rate accounts usually allow one lump sum deposit, followed by a period during which you cannot make any deposits or withdrawals. There are exceptions to this (e.g. LTSB 2-year fixed-rate ISA) and I am not familiar with HSBC's product, but usually it is not allowed to add further deposits during the term.

You can, however, open another ISA, either with HSBC or elsewhere, and deposit your 11/12 allowance in that.

Yes, you will be able to transfer your funds from the HSBC ISA to another provider once the fixed-rate term is up.

The rates you quote, including the Lloyds rate, are AER. This stands for Annual Equivalent Rate, and so you can always compare AERs on two products knowing that you are comparing like-for-like. It doesn't matter if the interest is paid once after five years, or every month for a year - the AER tells you what the equivalent rate is if the same amount of cash is left in the account for one year. So in answer to your question, no, the LTSB rate of 3.6% is *not* over two years, it is an AER.

ian-d

Thanks for the replies, I spoke to Lloyds before and they confirmed that I can place this years tax allowance in a new 2 year fixed rate ISA from them, then transfer in the money from HSBC when it comes out of the fixed rate in May.

This seems like the most logical step rather than putting this years allowance (if allowed) into HSBC now, as the rate is significantly different.

I agree with redmalc, HSBC are such a solid company that they don't seem to look after their customers with attractive rates. As a premier customer I've never had any support, nor any real benefits, plus on originally setting me up they entered the wrong credit card details for automatic payments so I was paying off someone elses credit card!!!

ian-d

Just to update, HSBC Premier have told me that I cannot add this years allowance until the fixed term deal comes to an end, then they will only be able to offer my another fixed deal at 2.75%....I think I'll be transferring my money to Lloyds then, big difference in rate for money I don't mind tying up.

MrISA

Just heard that Northern Bank now offers 2.25% on this years investments. Without any conditions as far as I heard. It's a bit lower than others, but a pretty reliable bank, isn't it ?

blueberrypie

MrISA wrote: »

Just heard that Northern Bank now offers 2.25% on this years investments. Without any conditions as far as I heard. It's a bit lower than others, but a pretty reliable bank, isn't it ?

It's lower than just about every other variable-rate ISA available - why on earth would you want to save at 2.25% when there are so many other providers offering better rates?

(And why post at the end of an already-established thread rather than start a new one, when your question has nothing to do with the thread?)

ian-d

blueberrypie wrote: »

(And why post at the end of an already-established thread rather than start a new one, when your question has nothing to do with the thread?)

Agreed, talk about taking the thread off subject to presumably promote another provider? A poor one at that!

MrISA

Sorry, I haven't understood the functionality about the threads apparantly.