HSBC ISA issue

drbraindead

Went into HSBC yesterday to find out what the interest on my Cash ISA was. They told me it was 0.2%! I thought it was low but not this low.

They said I could close it and open a new ISA with a rate of just over 1%, but would have to start again.

Annoyed that it was so low.

innovate

drbraindead wrote:

They said I could close it and open a new ISA with a rate of just over 1%, but would have to start again.

If that was the advice given, I hope you didn't take it because it is terrible advice.

ISA rates, like all savings rates, aren't brilliant right now but you can get double. And you should generally not close an ISA but have it transferred.

Check on the ISA board for the best available deals. Also perhaps read the ISA guide on the main site.

drbraindead

Cheers guys, Ill be taking the money out next year as ill be using it for a deposit,

Would it still be worth doing for such little gain though.

Archi_Bald

If you need the money next year, you can do better than leaving it in an ISA. You haven't said how much it is but I reckon you could probably easily distribute it across a couple of more current accounts that pay interest (FlexDirect 5%, Lloyds/BoS Vantage 3%, TSB Enhance 3%, Santander 123 3%). Plenty of info about all of these on their websites and here on the MSE forum.

drbraindead

Archi_Bald wrote: »

If you need the money next year, you can do better than leaving it in an ISA. You haven't said how much it is but I reckon you could probably easily distribute it across a couple of more current accounts that pay interest (FlexDirect 5%, Lloyds/BoS Vantage 3%, TSB Enhance 3%, Santander 123 3%). Plenty of info about all of these on their websites and here on the MSE forum.

Only 2k.

Thanks, shall have a look.

drbraindead

The more I think about this the more angery I feel.

Why on earth is my HSBC ISA 0.2% anyway, when their ISA offers are above 1%?

And why do they tell me I have to start again, why can't they transfer my ISA to a new setup?

Should I phone HSBC and kick off?

Looked at Nottingham BS, the rate is good, but I am unsure about the 60 day notice period? and no online banking?

Can't wait 60 days to get my money out.

Needs to be instantly accessed with no charges and free transfers.

rb10

drbraindead wrote: »

The more I think about this the more angery I feel.

Why on earth is my HSBC ISA 0.2% anyway, when their ISA offers are above 1%?

And why do they tell me I have to start again, why can't they transfer my ISA to a new setup?

Should I phone HSBC and kick off?

It's poor service, but then HSBC aren't exactly known for being great for savings accounts (or current accounts, for that matter).

I'd leave it, though. There's nothing to be gained by 'kicking off'.

drbraindead wrote: »

Looked at Nottingham BS, the rate is good, but I am unsure about the 60 day notice period? and no online banking?

Can't wait 60 days to get my money out.

Needs to be instantly accessed with no charges and free transfers.

If you need instant access, and will be using the money next year, then a non-ISA account will probably pay more.

Just go for one of the accounts mentioned by Archi Bald above.

cwal

If you need it next year why don't you open a nationwide flex direct? It pays 5% on up £2500 so long as you pay atleast £1000 a month in to the account - this is the easy bit, you just transfer £1000 out of your nationwide account in to your current account, log in to your current account (with faster payments it should show pretty much immediately) and transfer it back again.