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

Pincher

High ISA interest rate is not the only reason for keeping your money with an institution, case in point: IceSave.
During the credit crunch, HSBC didn't need a bail-out, which was a bloody good reason to have your money with them at that time.

On the point of intrusive questioning, the financial adviser has to do a fact find before they can sell you a financial product, otherwise it is a mis-sell. The report always ends with "based on your circumstances, we recommend that you sign up for our super duper endowment policy", or whatever they want to sell you any way. It's been going on for at least 20 years. But I only popped in to use the loo, you say.

A relative used to say, the coffee in ABN Amro is US$10,000 a cup.
The coffee is free, but the duds they sold you lose you a bundle.
Stay out of these Premier offices. They are dangerous to your wealth.

innovate

As long as your ISA provider is covered by the £85K FSCS protection and you don't come near that limit (with all your deposits), there is no reason at all to settle for mediocre interest rates. I know of no cash ISA provider that is not part of the FSCS scheme.

There is absolutely no reason whatsoever for an ISA provider to ask intrusive questions about your income and outgoings when you apply for a savings account (which is all an ISA is). There is no financial advice involved in filling in HSBC's online application for an ISA.

Pincher

People seem to think they are covered because they have insurance, until they come to claim. If you were expecting to pay for something like a mortgage deposit next month, it's plenty of time to get your money out of the FSCS scheme, is it? Also, I think the maximum went down to something like £35k around 2005ish. They pushed it back up to stop people mobbing the banks because of the credit crunch.

I'm not saying they they are justified in doing a fact find, I'm saying they will do one for any excuse. It's like those clip joints where they entice you in to a bar, put a lemon soaked napkin in front of you, and charge you £100 for it.

borderline

I have an e-Isa with HSBC .. not much money though, under £7000
is it worth it for me to switch to this new Loyalty Isa?

GreenBitterfly

borderline wrote: »

I have an e-Isa with HSBC .. not much money though, under £7000
is it worth it for me to switch to this new Loyalty Isa?

I'd say yes, as it's only a internal transfer form you'd have to complete.

TrustyOven

borderline wrote: »

I have an e-Isa with HSBC .. not much money though, under £7000
is it worth it for me to switch to this new Loyalty Isa?

Isnt this "transfer" done automaticaly?

I opened a HSBC e-ISA in January this year. I had 1.6% AER as per their old ISA product. Then came March or whenever, and I got 1.4% interest, it got automatically transferred. It's still the same account number and sort code. Everything looks the same. Just the interest is 1.4% AER and I need to make sure I deposit some money at least once a year to keep that 1.4% loyality.

Can anyone else confirm please?

borderline

TrustyOven wrote: »

Isnt this "transfer" done automaticaly?

I opened a HSBC e-ISA in January this year. I had 1.6% AER as per their old ISA product. Then came March or whenever, and I got 1.4% interest, it got automatically transferred. It's still the same account number and sort code. Everything looks the same. Just the interest is 1.4% AER and I need to make sure I deposit some money at least once a year to keep that 1.4% loyality.

Can anyone else confirm please?

No, I haven’t been transferred . There is a link on my account if I want to transfer, then there is a form to fill out.

the thing is, i have no idea what interest rate I’m in right now. Every month I get from £8-10 in interest

TrustyOven

borderline wrote: »

No, I haven’t been transferred . There is a link on my account if I want to transfer, then there is a form to fill out.

the thing is, i have no idea what interest rate I’m in right now. Every month I get from £8-10 in interest

I didnt have to fill in any forms. At all. I didnt press any links either. It just magically happened.

http://www.thecalculatorsite.com/finance/calculators/savings-calculators.php

Change it to pounds, stick in how much you have in your ISA amount, put it at 1.4 APR (bit less for 1.4 AER, but doesnt matter for this), calculate for 2 months, interest calculated monthly. Press the Calculate button and it should tell you the Month Interest.

See if that corresponds to your £8 to £10 monthly interest.

eg. 7000 @ 1.4% APR is £8.17 for the first month.
7000 @ 1.6% APR is £9.33 for the first month.