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TSB Current account
w00519772
Posts: 1,297 Forumite
I currently have £1,000 in a HSBC current account earning 5% interest. I also have about £4,000 in a Santander current account earning 3% interest. I have to pay my salary into the HSBC account to earn the interest from HSBC.
I have discovered that TSB offer 5% of balances up to 2000. Therefore I am thinking about opening a TSB account and transferring the 1000 from the HSBC account plus 1,000 from the santander account.
Are there any pitfalls to this?
I have discovered that TSB offer 5% of balances up to 2000. Therefore I am thinking about opening a TSB account and transferring the 1000 from the HSBC account plus 1,000 from the santander account.
Are there any pitfalls to this?
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Comments
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Which HSBC savings account pays 5% interest? There don't seem to be any listed here or mentioned at all when high interest accounts are discussed.I currently have £1,000 in a HSBC savings account earning 5% interest.
No pitfalls at all with the TSB account, many people here are using them.
Why would you move any money from the HSBC account to another account paying the same rate though?Remember the saying: if it looks too good to be true it almost certainly is.0 -
Which HSBC savings account pays 5% interest? There don't seem to be any listed here or mentioned at all when high interest accounts are discussed.
No pitfalls at all with the TSB account, many people here are using them.
Why would you move any money from the HSBC account to another account paying the same rate though?
Because TSB offer interest up to 2000 whereas HSBC only up to 1000.0 -
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I do not work for HSBC. I think the offer must only be available to certain customers. Not sure.0
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Seems odd that a savings account would need a salary paid into it, which HSBC account is it?0
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I vaguely remembered such an HSBC current account offer. A quick google has thrown up this...Seems odd that a savings account would need a salary paid into it, which HSBC account is it?
https://www.lovemoney.com/news/14033/hsbc-bank-account-pays-6-on-your-cash
...but it's 6% on up to £2.5K.
Looks like they had another offer at some point in the past, but 5% on only £1K.0 -
But why move the 1000 which is happily earning the same rate at HSBC? The rate is not going to be any better after you move it? Why give up on that decent HSBC account (that most people here don't know about)? You could surely just keep your 1000 in HSBC and be earning 5% on it, and then put 1000 of your Santander money into TSB to get 5% there, and then you still have space to add more into the TSB once your savings grow. To me it seems strange to close down an account at HSBC that's paying more than your one at Santander if moving the account doesn't actually get you a better rate than it's currently doing.
As far as I can see, there isn't a standard HSBC account paying 5% these days. There were savings accounts at that rate a few years back but would have stopped paying the 5% after a year. Likewise regular savers after a year or when you stop paying into them. They still offer a 6% regular monthly saver, if you have one of their Premier current accounts - which if you do, would be better than both the 5% at TSB or the 3% at Santander for a small part of your money increasing over time. Just drip feed into it monthly. But if you're like the rest of us and don't qualify for 5% or more on a new HSBC account, it would seem strange to close one down that's paying that much, as you'll never get it back if you want it in future.0 -
You say you've "about £4K" at Santander. If you did move £1K, then if you slip up and drop below £3K at Santander your interest rate would be slashed to 2% AER.Are there any pitfalls to this?
I assume you're benefitting from 1/2/3% cashback on certain DDs at Santander, or plan to do so in the near future? If not, there are other accounts that would give you a better net return than the Santander 1-2-3 is doing.0
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