MSE News: HSBC launches 1.6% 'loyalty' Isa – but it's no market-beater

"If you're an HSBC current account holder, you can get up to 1.6% AER interest on your savings with the bank's new Isa..."
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HSBC launches 1.6% 'loyalty' Isa – but it's no market-beater

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  • Oblivion
    Oblivion Posts: 20,248 Forumite
    Photogenic First Post First Anniversary
    I have been an HSBC Premier customer for decades and have stayed loyal because they have always been helpful and incredibly accurate ... never had an incorrect statement yet. Online banking is superb. Two credit card scams sorted out immediately with no fuss.

    That said, I once had a S&S ISA with them that over 5 years earned next to nothing. I also had a cash ISA with them and in no time at all they'd dropped the interest rate to an insulting 0.25%. Needless to say, that's been transferred out. I have no doubt that once they get enough people on the hook for this one they'll drop the rate to similar levels.

    Quite frankly I'll be putting in next years allocation with NS&I again, as I have done for the past few years. Their rate may have dropped to 1.5% but the 0.1% difference with HSBC is neither here nor there, and I find NS&I a lot more open and ethical than any of the banks. ;)
    ... Dave
    Happily retired and enjoying my 14th year of leisure
    I am cleverly disguised as a responsible adult.
    Bring me sunshine in your smile
  • I was looking to open and transfer old ISA(s) to a Loyalty Cash ISA with HSBC as the rate was ok, however without a current account it's not possible.

    So, started to fill in the form until I got to the totally intrusive questions regarding income/outgoings/income sources to the point where I decided to abort the application.

    I understand the need to verify identification and address but the rest???

    So what exactly is the FCA requirement the bank needs to enforce, and how much personal information do you need to give?
  • planteria
    planteria Posts: 5,321 Forumite
    First Anniversary Combo Breaker First Post
    Oblivion wrote: »
    I have been an HSBC Premier customer for decades and have stayed loyal because they have always been helpful and incredibly accurate ... never had an incorrect statement yet. Online banking is superb. Two credit card scams sorted out immediately with no fuss.

    That said, I once had a S&S ISA with them that over 5 years earned next to nothing. I also had a cash ISA with them and in no time at all they'd dropped the interest rate to an insulting 0.25%. Needless to say, that's been transferred out. I have no doubt that once they get enough people on the hook for this one they'll drop the rate to similar levels.

    Quite frankly I'll be putting in next years allocation with NS&I again, as I have done for the past few years. Their rate may have dropped to 1.5% but the 0.1% difference with HSBC is neither here nor there, and I find NS&I a lot more open and ethical than any of the banks. ;)

    all fair, and keeping your ISA together in one place must be worth something. i don't use my ISA allowance for Cash, though.
  • gt94sss2
    gt94sss2 Posts: 5,626 Forumite
    Name Dropper Combo Breaker First Post First Anniversary
    Oblivion wrote: »
    That said, I once had a S&S ISA with them that over 5 years earned next to nothing. I also had a cash ISA with them and in no time at all they'd dropped the interest rate to an insulting 0.25%. Needless to say, that's been transferred out. I have no doubt that once they get enough people on the hook for this one they'll drop the rate to similar levels.

    I have a HSBC Premier account as well and as you say it operates very smoothly. You can't necessarily hold them responsible for a S&S ISA - it obviously depends what it was invested in and when,,

    Their new ISA loyalty concept is interesting - and is now the only ISA they offer. I think this will be a 'permanent' change, not temporary. The regulators seem to have decided that accounts which pay 'bonuses' are not good for customers who they think are 'obviously' unable to shop around and change their accounts at the end of the bonus period.

    I think HSBC are just getting in first before all the banks are forced to change..

    As for me, I could get a higher rate from First Direct but am thinking with interest rates the way they are, there may not be much point in having an Cash ISA.

    However, it seems a good choice for those not willing to shop around and who prefer to keep everything with the same bank.

    Regards
    Sunil
  • gt94sss2
    gt94sss2 Posts: 5,626 Forumite
    Name Dropper Combo Breaker First Post First Anniversary
    stup52 wrote: »
    So, started to fill in the form until I got to the totally intrusive questions regarding income/outgoings/income sources to the point where I decided to abort the application.

    I understand the need to verify identification and address but the rest???

    Given they have recently been fined $1.9bn for not doing enough to prevent money laundering, you could expect them to be a bit over zealous.

    Though I have been asked similar questions to those you describe from several other banks as well..

    Regards
    Sunil
  • innovate
    innovate Posts: 16,217 Forumite
    Combo Breaker First Post
    Their Marketing folks are using the ML fine as a superb excuse to try and extract tons of information from harmless savers who just want to get a bit of interest on a few thousand pounds.
  • Pincher
    Pincher Posts: 6,552 Forumite
    Combo Breaker First Post
    The way to get the best out of HSBC is to be with First Direct.
    Their ISA is paying 1.70% for £10k+, 1.85% for £20k+, then 2.00% for £40k+.

    If you did have a £50k shares ISA with them in 2007, what would have happened in 2008? Sorry sir, but you have to add £15,000 to one of your accounts to stay eligible for Premier status at £50k.

    With First Direct, you get free banking for £1,000 a month transfer in. And you get better mortgage offers, as well as more interest on your ISA.

    You do save on telegraphic transfer fees if you have multiple Premier accounts in different countries, though.
  • innovate
    innovate Posts: 16,217 Forumite
    Combo Breaker First Post
    Pincher wrote: »

    With First Direct, you get free banking for £1,000 a month transfer in. And you get better mortgage offers, as well as more interest on your ISA.

    .
    You don't need to pay in £1K a month to get free banking. Just keep £1 in their esaver and the current account is free.
  • zerog
    zerog Posts: 2,478 Forumite
    stup52 wrote: »
    So, started to fill in the form until I got to the totally intrusive questions regarding income/outgoings/income sources to the point where I decided to abort the application.

    It's reasonable for a bank to want to know about your personal finances. It's also reasonable that you might not want to give them all this information.

    So it seems like you have made the right choice in aborting the application.

    HSBC Premier is very good but has the opportunity cost of keeping £50k with them at low interest rates. Yet £50k is one of the lower requirements around the world.
  • ANGLICANPAT
    ANGLICANPAT Posts: 1,444 Forumite
    First Post First Anniversary
    If you think thats intrusive , you should have heard Barclays when I went in for an appointment to sort out/freeze my mothers current and ISA accounts with them about two weeks after she died . After they had ascertained I was her executor/beneficiary , they said I needed to speak by phone to another dept in Barclays which was especially for explaining about post death accounts. I was asked ordinary questions for two minutes, all standard stuff, then it suddenly crept into questions about what other investments did my mother have elsewhere, and what opportunities there were for her money ---with THEM. Needless to say as soon as I realized the irrelevance of the questions to my immediate needs, I terminated the appointment without answering them and made it clear I wasnt impressed.
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