Why has HSBC's Regular 8% Saver only paid 3ish%?

shapala · 28 February 2013 at 12:14PM

Hi all.

Last year, I set up a regular account with HSBC, the account where you get paid 8% interest for amounts you lock away. The maximum amount you can invest is £250 per month, and so £3000 p/a. I invested the maximum amount every month, so £3000 for the year.

The funds matured a few days ago, but instead of expecting £240 in interest (8%), I received £103. Setting it up was very easy as I remember and so I'm really unsure why I have not received the interest I was otherwise expecting.

Does anyone know why this is or have HSBC shafted me on this one?

stephane_2 · 28 February 2013 at 12:17PM

If I read it correctly you invested £250 per month....and not the £3000 in one go...so how can you expect getting £240 after one year..?

bryanb · 28 February 2013 at 12:18PM

You only had the full amount in the account in the final month, so only that month earns 8% on £3000.
Months before that obviously had less invested, so therefore 8% on £2750 the previous month.
So on till first month £250 invested, so 8% on £250. Probably calculated daily but same principle.

Sharon87 · 28 February 2013 at 12:22PM

Also doesn't the interest get taxed? so its 8% minus tax

Idiophreak · 28 February 2013 at 12:24PM

What did HSBC say when you asked them about it?

stephane_2 · 28 February 2013 at 12:24PM

Sharon87 wrote: »

Also doesn't the interest get taxed? so its 8% minus tax

No it doesn't...

shapala · 28 February 2013 at 12:27PM

Ah, yes, you're absolutely correct.

Now I feel very stupid. Thanks for the help.

opinions4u · 28 February 2013 at 12:30PM

shapala wrote: »

Ah, yes, you're absolutely correct.

Now I feel very stupid. Thanks for the help.

Don't worry, you're not the first.

Others would be using words like "scam" and "rip-off" by now, rather than choosing to understand it.

So credit to you.