HSBC: 6% (fixed) on Current Accounts for new **and existing** customers

Ygor

Isn't the £5000 interest free overdraft for a year more valuable than 6% on £2500?

6% on £2500 = £150 gross

Take £5000 overdraft and the £2500 you were going to have in the current account. That's £7500

£7500 in Monmouthshire flexible saver @ 4% = £300
or
£7500 in Santander esaver @ 3.1% = £232.5

Am I missing something?

Gromitt

Ygor wrote: »

Isn't the £5000 interest free overdraft for a year more valuable than 6% on £2500?

Yes, but considering the fact the overdraft can be withdrawn at any time and will be reported to the CRAs, it seems a particularly risky thing to do for an extra £80.

10_66

Just had a frustrating 'phone call with HSBC, trying to pin them down to when the 6% interest might start. They won't budge on their "within a month of completion", so the best they could come up with is "wait until you get your monthly statement to see if you've started to earn interest" (£500 paid in within a month of opening, as requested, but wanted to pay in £2,000 to earn interest on the maximum balance). Maths (unfortunately) is not my forte, but this could mean interest is paid 2 months down the line from opening the account (1 month for completion, another month before you start to ean interest from completion), so as the 6% is only payable for 12 months, and two of those months' would have already gone when the maximum balance is not in the account, I'd like to know what the APR is on 10 months' not 12 months'.

guli

10_66 wrote: »

Just had a frustrating 'phone call with HSBC, trying to pin them down to when the 6% interest might start. They won't budge on their "within a month of completion", so the best they could come up with is "wait until you get your monthly statement to see if you've started to earn interest" (£500 paid in within a month of opening, as requested, but wanted to pay in £2,000 to earn interest on the maximum balance). Maths (unfortunately) is not my forte, but this could mean interest is paid 2 months down the line from opening the account (1 month for completion, another month before you start to ean interest from completion), so as the 6% is only payable for 12 months, and two of those months' would have already gone when the maximum balance is not in the account, I'd like to know what the APR is on 10 months' not 12 months'.

AER is still 6%

Gromitt

10_66 wrote: »

as the 6% is only payable for 12 months, and two of those months' would have already gone when the maximum balance is not in the account, I'd like to know what the APR is on 10 months' not 12 months'.

6% is paid for 12 months, not 10, so the AER is still 6%. If it takes a month to complete, you'll still get 6% for 12 months, so if you don't have the funds available on the month interest is calculated, the most you'll lose out on is interest on 2000*0.06*0.80/12 = £8. If the 2K was in a 3% savings account, you'd get £4, so it's a gamble. Do you go for guaranteed £4 or possible £8 but £0 if you lose out?

redmalc

Hi There,Premier account customer for many years,called my Premier manager a few days ago to enquire what i was going to acheive from this 6% !!!!!!!! they have been advertising and just has i had thought i would get nothing.
I did not take that,and within the last six days have withdrawn 70K and deposited it with Virgin and the 80K sitting in my fixed rate isa which matures in April will be going elsewhere,they have really annoyed me.
I have had numerous meetings with the investment boys and they have never managed to get my Stocks and Shares Isa,s from Fidelity ,Skandia and HL,they have shot themselves in the foot as far as i am concerned and it will be down to the Premier Manager if he still wants my business after the Isa,s have gone

rb10

10_66 wrote: »

Just had a frustrating 'phone call with HSBC, trying to pin them down to when the 6% interest might start. They won't budge on their "within a month of completion", so the best they could come up with is "wait until you get your monthly statement to see if you've started to earn interest" (£500 paid in within a month of opening, as requested, but wanted to pay in £2,000 to earn interest on the maximum balance). Maths (unfortunately) is not my forte, but this could mean interest is paid 2 months down the line from opening the account (1 month for completion, another month before you start to ean interest from completion), so as the 6% is only payable for 12 months, and two of those months' would have already gone when the maximum balance is not in the account, I'd like to know what the APR is on 10 months' not 12 months'.

HSBC are very good at giving people incorrect information.

Read the T&Cs - in particular, 4.1b. The interest starts within one month of the branch receiving the switching form. It's nothing to do with 'completion'.

As others have said, the T&Cs also clarify that you will receive 6% for a full 12 months. The difficulty will be knowing when your 12 month period begins (and so thus when it ends). It would be worth getting the answer in writing, since I certainly wouldn't trust HSBC enough to be happy that they're giving the correct answer.

10_66

rb10 wrote: »

HSBC are very good at giving people incorrect information.

Read the T&Cs - in particular, 4.1b. The interest starts within one month of the branch receiving the switching form. It's nothing to do with 'completion'.

Yes, the reason I rang them was because I was trying to find out some precise dates. I understood it to be as per the T&Cs, but when I spoke to their CS was told conflicting information (which presumably is wrong as it was different from what the T&Cs state). I don't know how hard it can be for them to tell me when the "switching" forms were received. I've had a letter telling me of my standing order switch "completion" date, which is sometime in February, the CS said the interest would be paid within a month of that date .

rb10 wrote: »

...It would be worth getting the answer in writing, since I certainly wouldn't trust HSBC enough to be happy that they're giving the correct answer.

I've sent the a couple of secure messages, but not received any replies, so much for replying within 2 working days. This is my first experience of HSBC and I'm not particularly impressed so far, 'though I do have an account with firstdirect, so I'm surprised the service is so different.

DebtMagnet

I have been watching this thread for a few days since I heard about this offer and I'm still no wiser as to the rules for existing customers.

I have been a HSBC customer since they took over my old Midland Bank account. I have never switched bank full stop. I have always had my salary paid in to this account.

I have lived in my HSBC overdraft for many years now and so the suggestion that I may be eligible for a 0% overdraft for 12 months is very interesting and would save me a lot over a year.

I understand I need to switch 2 DD's or SO's, but I am still not certain if I can just tell them 2 I want to switch, or do I need to give them an account to switch in full?

Problem is my only other account is a joint budget account that would not really be convenient to close so if they need the whole account switched and closed then its not so easy.

I have tried asking customer services but to be honest they just confused me even more and kept telling me irrelevant facts that did not relate to me.

Anyone who's done it know the answer?

Thanks in advance
DM

Gromitt

You only have to switch the account (SOs/DDs), you don't need to close it.