hsbc isa confusion

homerhotspur

My elderly father has a standard HSBC current account and, in February, we opened his first ISA ( an online e isa). It was an easy process, so I hoped to repeat it for the 2014/15 year but, typically, this account is no longer available and the only one appears to be their ' Loyalty Cash Isa'. n.b We are looking for simplicity rather than best rates. If we can't do it via HSBC we won't bother.

It seems to me we now have to send off a form to transfer the existing isa, but the new ' loyalty' account is only giving 1.4% compared to our current 1.6%. Am I missing something here? Why would anyone want to do this?
Perhaps I am missing something but, as usual, they seem to be creating a complicated procedure for an inferior product.
So, to clarify , we want to open an HSBC online ISA for 2014/15 and transfer in the 2013/14 amount but the 'loyalty' option seems worse than the original.

Lokolo

If the e-ISA which he used for 13/14 is paying more interest, why not use that as his ISA instead of opening a new one?

There is nothing wrong with using the same ISA as you did last year.

jimjames

Lokolo wrote: »

If the e-ISA which he used for 13/14 is paying more interest, why not use that as his ISA instead of opening a new one?

There is nothing wrong with using the same ISA as you did last year.

Or even don't use an ISA at all.

He can get 5% from a current account and if he isn't a taxpayer then it would be pointless with an ISA anyway.

homerhotspur

Lokolo wrote: »

If the e-ISA which he used for 13/14 is paying more interest, why not use that as his ISA instead of opening a new one?

There is nothing wrong with using the same ISA as you did last year.

Because it is no longer available and has been replaced by the lower rate one

Lokolo

homerhotspur wrote: »

Because it is no longer available and has been replaced by the lower rate one

At what point did I say open a new one? You have an account already, correct? Why don't you just deposit more money into this existing account?

le_loup

Listen to Lokolo, you have an account paying 1.6%, if you want to, continue using it. Put this years allowance into the existing account. I assure you that this is possible.

homerhotspur

Sorry, but even when it is listed as an account ' no longer available'?

le_loup

Yes.
Try it, you'll then see that what we are saying is true.
Better still, ask them, not anonymous people on the internet.

homerhotspur

Well you were right, in as much as the computer 'didn't say no' and accepted the transfer! I assume they will just phase it out by offering worse rates at some point in the future. Thanks