HSBC'S 8% 1 year savings account and 5.25% mini cash isa

dean_ham

https://www.hsbc.co.uk

Sorry if this is old news but I have'nt noticed this before on the HSBC website.

Would you recommend the savings account or mini cash isa? any good bad experiences with them? any hidden facts, costs etc?


I will come into £10,000 some time in march, would you recommend me signing up to the HSBC ISA with a deposit of £1 to get the account up and running and add £2999 when i get my £10,000 sometime in march?


I am currently saving £250+ a month with egg 5.5% surley it will be better if i save with the 8% savings account insted?


Recommendations welcome.

Thanks
Dean

Midas

If you bank with HSBC anyway, you might as well take advantage of the 8% offer for your regular savings (that are currently going to Egg). But if you don't bank with HSBC - as Martin explains here you might as well just go for the Halifax 7% offer (for which you don't have to bank with the Halifax).

Also you should make as much use as you can of your tax free savings allowance (£3000 p.a. into a cash ISA). The tax year ends on April 6th, so get £3000 in before then and then you can stick another £3000 after that date. There's no harm at all in getting the ISA open now so its ready and waiting.

Hope this helps.

dean_ham

Midas wrote:

If you bank with HSBC anyway, you might as well take advantage of the 8% offer for your regular savings (that are currently going to Egg). But if you don't bank with HSBC - as Martin explains here you might as well just go for the Halifax 7% offer (for which you don't have to bank with the Halifax).

Also you should make as much use as you can of your tax free savings allowance (£3000 p.a. into a cash ISA). The tax year ends on April 6th, so get £3000 in before then and then you can stick another £3000 after that date. There's no harm at all in getting the ISA open now so its ready and waiting.

Hope this helps.

Thanks,

I do bank with HSBC, so i think i will sign up for both these products!

Any other recommendations before i sign up?

grumbler

dean_ham wrote:

Any other recommendations before i sign up?

FD ISA 6.25%

isasmurf

The HSBC Cash ISA pays a paltry interest on low amounts. You only get 5.25% if your balance is over £15,000.

I would go with the First Direct ISA (a HSBC subsidiary) paying 6.25% for 8 months. Put in £3,000 before 5th April, and another £3,000 after April. Then once the 8 months is up, transfer it to whoever has the best Cash ISA at the time.

dean_ham

i take it that the first direct one has no penalties when moving to a different cash isa company (from what i can read on the website)?

If not ill be signing up to that tonight.

Thanks

isasmurf

First Direct do not currently charge for transfers out.

dean_ham

So does that mean in 8 months time that could change and there could be an £x amount to move?

isasmurf

It could do, but unlikely.

Anyway, that would be a change in terms & conditions and you'd have the right for a short time (about a month?) after being notified to move your money under the current T&C.

dean_ham

sorry just read the T and C just before you posted.

I am going to sign up to this then. Do you get statements online each month or do they send them to you.

isasmurf

It's an e-isa, so I would have thought you'd get it online.