HSBC Online Saver: What is new to HSBC money?

lkoky

Hi there,

I was browsing for a new high rate saving account and came accross HSBC onlive saver offering 5.75% AER but there is a clause states that

"""Variable rate of 5.75% AER, 5.60% gross, paid monthly. (Only payable on new to HSBC deposits up to a total maximum amount of £50,000)."""

what is new to HSBC deposits? Does this mean they only pay 5.75% on money transfer in from any non-HSBC accounts? If you deposit money from you HSBC current account than you wont get this rate, is this right?

thanks

magentadreamer

I've got one of these accounts and any money gone in to it has gone via my HSBC current account, so I'm sure you can feed money from your HSBC Current account and get the 5.75% -but I'm going to email them and ask now!

Beate

When I asked this question in my branch a couple of months ago, this is what I was told: The 5.75% will ONLY be paid on monies new to HSBC, i.e. coming from an external bank account. If they come from an external bank account into your HSBC Current Account first and then get transferred over, their clever systems can apparently pick that up, and the 5.75% will be paid.
Whether that's actually works or not, I don't know because at the end of the day all the money in your Current Account has come from somewhere else originally (like salary), hasn't it?

Compound_2

Beate wrote: »

If they come from an external bank account into your HSBC Current Account first and then get transferred over, their clever systems can apparently pick that up, and the 5.75% will be paid.

Surely it would be quicker and more prudent to just quote the sort code/account no of the Online Saver when doing the transfer from the other bank. There is no reason for it to go via an in-house current account (unlike some other online savers). I believe for the opening deposit you can use either a debit card elsewhere or internal transfer. Best to avoid using funds in the HSBC current account!

gt94sss2

lkoky wrote: »

what is new to HSBC deposits? Does this mean they only pay 5.75% on money transfer in from any non-HSBC accounts? If you deposit money from you HSBC current account than you wont get this rate, is this right?

HSBC will pay you the 5.75% even if the money is transferred from your HSBC current account - as most people's salary etc is paid into their current account, as are funds from 'linked' savings accounts at other institutions (ICICI, Icesave etc) which HSBC are trying to attract to themselves - it wouldn't make much sense otherwise..

In other words, - even though they say 'In addition if you transfer monies into your Online Saver from another HSBC bank account we may pay you the standard Online Saver interest rate on such monies' - HSBC do not enforce the clause at all, its simply there to encourage people to move funds held elsewhere to HSBC, rather than from another lower paying HSBC savings account to this one..

To be honest, even if HSBC wanted to enforce this condition, it would be very difficult for them to do so.. notice their careful use of the word 'may'

Regards
Sunil

Touser

I've looked into getting the HSBC Online saver but was unsure which interest to select "Gross" or "Net" what is the difference and which is more likely of the two that I need to select?

Thanks

gt94sss2

Touser wrote: »

I've looked into getting the HSBC Online saver but was unsure which interest to select "Gross" or "Net" what is the difference and which is more likely of the two that I need to select?

Most people need 'net' interest which means that the interest is paid with 20% tax already taken off which is ideal for basic rate tax payers - and should be the default choice.

Higher rate tax payers would still need to pay additional tax via their tax return.

Gross Tax means no tax is deducted when it is paid and should only be chosen by non tax payers, (for instance those entitled to fill in an R85 form)

Regards
Sunil

Touser

Thanks gt94sss2, that's helped to clear things up.

robledouk

I opened up an online saver more than a month ago now but have not received the interest as of yet......

when is the interest usually paid? at the end of each calendar month?

intalex

They usually pay interest on the 1st of the month, so it should appear at some point later today.

BUSPBP

You will never get your interest if you've made a withdrawal during the month, even for a penny. That's a tricky clause which I've just learned from HSBC T&Cs.

They've stolen my money this way. My fund is being transferred to another lower-rate bank but who is honest paying me interests for all my daily balances.

BUSPBP