HSBC Advance Save Together

Ifts

Received letter from HSBC today saying they will be reducing the Loyalty rate on their cash ISA offerings (effective from 29/07/2015):

• HSBC Premier Loyalty Cash ISA: from 1.6% to 1.5%
• HSBC Advance Loyalty Cash ISA: from 1.5% to 1.4%
• Other HSBC Loyalty Cash ISA customers: from 1.4% to 1.3%

Still a good deal for those that pay in £25 per month (or you've made one lump sum payment of £300 or more) to benefit from the additional £10 'Save Together' monthly payments.

Lungboy

I applied online last weekend and yesterday was rejected for the Advance account. No explanation, so I'm a little surprised. Maybe I should have fiddled my income a bit to get it over the £1750 level, although that really shouldn't matter as long as I pay in the £1750. Oh well, 3 less accounts to worry about.

Klopek

Can anybody who paid in the £300 lump sum and then removed it confirm whether they are still receiving the monthly payments?

Many thanks.

Westie983

I got a letter from HSBC, confirming that you can still get the £10 Save Together if you withdraw the money, as long as you originally paid in £300.

I asked about this in branch and ask them to confirm in writing :-)

arbster

Klopek wrote: »

Can anybody who paid in the £300 lump sum and then removed it confirm whether they are still receiving the monthly payments?

Many thanks.

Given that banks seem to be getting wise to the abuse of their "loyalty" schemes, do you think this is wise, even if it's possible? Do you really need that £300, or could you live without it for 12 months, in order to avoid possibly having your account closed down, as others have experienced with other banks?

masonic

arbster wrote: »

Given that banks seem to be getting wise to the abuse of their "loyalty" schemes, do you think this is wise, even if it's possible? Do you really need that £300, or could you live without it for 12 months, in order to avoid possibly having your account closed down, as others have experienced with other banks?

So you think withdrawing a £300 balance paid into an instant access cash ISA would be interpreted as abuse by the bank? You think banks are closing the accounts of people who do not use accounts in the way the bank intended them to be used (with the obvious exception of illegal use)?

Care to substantiate any of these claims?

If, as you claim, there is a risk HSBC will close the accounts of those who "abuse" their products, don't you think those of us who do not pay their salary into, or have any direct debits coming out of, our Advance accounts are at greater risk of being shown the door by HSBC than someone who deposits, and then withdraws, money from their instant access ISA?

Westie983

I must add although I have it in writing, I haven't removed any of the money, but the reason for my enquiry was if I need the money closer to christmas.

I dont use ISAs as I am a non tax payer but putting £300 into the ISA from my wages in April was a good idea to gain 40% interest over the next 12 months....

The loyalty isa is instant access and therefore withdrawals and credits into the ISA would not raise suspitions nothing more then I did this time last year without the save together scheme in place.

colsten

Westie983 wrote: »

I dont use ISAs as I am a gross tax payer

Not sure what a gross tax payer is - do you mean your 2015-16 income from employment is less than £10,600 , and your 2015-16 interest is below £5,000, and therefore you are entitled to gross interest from banks?

Westie983 wrote: »

putting £300 into the ISA from my wages in April was a good idea to gain 14% interest over the next 12 months....

you must have misheard - £120 of £300 is not just 14% but 40%.

Ed-1

colsten wrote: »

Not sure what a gross tax payer is - do you mean your 2015-16 income from employment is less than £10,600, and your 2015-16 interest is below £5,000, and therefore you are entitled to gross interest from banks?

Surely if this is what is meant by the term "gross taxpayer" the employment income would be more than £10600 (the personal allowance) otherwise you're not a taxpayer, but combined with interest income would be less than £15600 so that you're a taxpayer qualifying for gross interest through the £5000 0% savings band.

Westie983

I meant that I get my interest gross, as I am a non tax payer, I have amended my post, I wrote my post then edited it and forgot to delete the world gross....

I was trying to explain why I have contacted HSBC to confirm that I am able to remove the £300 if I wish as there was nothing in the T&C's at the point of my accepting them that the money had to remain in the ISA,

As a non tax payer I have no need for ISA's but have taken up this offer due to the interest gained in 12 months time.

As explained I have not removed any funds from the ISA but things may change so wanted clarification as evidence is always better in writing then verbal.

I must add there for a lot of confusion by both branch staff and head office/customer services, I was told that the T&C's were confusing and that they may update them accordingly as I'm sure Im not the only one to ask this question....