HSBC Advance Changes

colsten

I have changed mine as well now. It should yield me another £20 or so from my current Regular Saver, as long as they keep paying the 6%. It could have taken less than 25-30 minutes but hey-hoh, it's the kind of pain us savers have to go through these days.

Archi_Bald

TheEffect wrote: »

Did you change your account to Advance?

yes I did, but only because I wanted the 6% on the Regular Saver. I won't be using the account for anything much else as there are several better current accounts available.

Use the 0800 number when you call them

Archi_Bald wrote: »

EDIT: persevered on the 0800 number and now got an Advance account. Took about 30 minutes, incl. full credit check. 6% AER on the Reg Saver from today

TheEffect

Archi_Bald wrote: »

yes I did, but only because I wanted the 6% on the Regular Saver. I won't be using the account for anything much else as there are several better current accounts available.

Use the 0800 number when you call them

Full credit check even though you converting an account to the Advance account, and not opening a new account?

Archi_Bald

That's what they said.

Pincher

I have been with First Direct for over 20 years, but HSBC not only did a credit check when I opened an account recently, they rejected an application for an Invest Direct trading account, because I am a "new customer", and they need to see how I operate my account first. All I wanted to do was to open a Stocks and Shares ISA and trade inside that, but because the Invest Direct has a £10,000 trading overdraft facility, for trade settlement purposes (not ISA related), they have to be careful.


Invest Direct's charging structure is pretty good for holding shares. With Selftrade, which has been changing hands every couple of years, I was losing money on quarterly fees even though I haven't traded for years. No fees with HSBC, other than the initial trade. The stamp duty will be more than the trading fee anyway.


https://www.hsbc.co.uk/1/2/current-accounts/hsbc-advance?HBEU_dyn_lnk=CurrentAccount_FilterTool_Advance_FindOutMore_Button


Don't really see the point of Advance. First Direct has a Regular Saver at 6% for £300 a month. I suppose you could do one in each bank, with a six months gap, so the money earning 6% is more evenly spread through out the year.

colsten

Pincher wrote: »

I have been with First Direct for over 20 years, but HSBC not only did a credit check when I opened an account recently

This makes sense as HSBC and First Direct operate as separate entities with their separate systems. Also, all banks would probably do a new credit check if you wanted an increase in the credit facilities they grant you.

Pincher wrote: »

Don't really see the point of Advance. First Direct has a Regular Saver at 6% for £300 a month. I suppose you could do one in each bank, with a six months gap, so the money earning 6% is more evenly spread through out the year.

Don't really see the point of not having 2 (or more) Regular Savers if you have the cash to feed them, and to satisfy the minimum monthly deposits of the pre-req current accounts. Not sure either why I would delay earning interest by 6 months, or any number of months, if I don't have to. Getting 6% is obviously better than getting 4%. So there may not be a point in the HSBC Advance for some but there may be for others like myself.

Pincher

colsten wrote: »

Don't really see the point of not having 2 (or more) Regular Savers if you have the cash to feed them, and to satisfy the minimum monthly deposits of the pre-req current accounts. Not sure either why I would delay earning interest by 6 months, or any number of months, if I don't have to. Getting 6% is obviously better than getting 4%. So there may not be a point in the HSBC Advance for some but there may be for others like myself.

I am talking about cash flow.
Let us say you start both in January, you will have
(300 + 250) x 12 =£6,600 tied up in December.


If you start the First Direct in January, and the HSBC in July, you will have only 300 x 12 + 250 x 6 = £5,100 tied up in December. In the following January, you would start the next Regular Saver with First Direct.


If I had four Regular Savers, I would stagger them at three months intervals, as you have a redemption opportunity every three months, without any early release penalty.

colsten

Your point is very valid if cash flow is a consideration, and for many people it might be. It isn't for me, so I just drip feed from lower paying current accounts into the regular savers. The return currently beats any 1-year fixed term savings, incl cash ISA.

TheEffect

Converted my Graduate Account to an Advance Account this morning. Took about 30 minutes and they wanted all of my employment details etc.

All sorted now.

Everynamestaken

Out of interest, as the advance red card disappeared now?

Surely if you apply for the advance, you wouldn't get a new debit card?