HSBC Advance Save Together

DreamerFTB

I want to use this HSBC offer but cannot understand something:
if I understood it correctly, if I put 15k in April in my ISA, I will fill my allowance and get around £ 17 per month that are tax free. With this offer I will get + £ 10, so about £ 27. But will they be tax free too?

colsten

DreamerFTB wrote: »

I want to use this HSBC offer but cannot understand something:
if I understood it correctly, if I put 15k in April in my ISA, I will fill my allowance and get around £ 17 per month that are tax free. With this offer I will get + £ 10, so about £ 27. But will they be tax free too?

They will make an additional interest payment of £10 a month into your HSBC Loyalty Cash ISA. Anything and everything that happens within an ISA is tax free.

https://www.hsbc.co.uk/1/PA_esf-ca-app-content/content/pws/content/personal/pdfs/44444_A5_Save_Together_Terms.pdf

spenderdave

According to my calculations putting the full ISA allowance of £15240 in at April at 1.5% plus the £120 HSBC topup corresponds to an effective rate of 2.3%. So you really need to look at what other ISAs are paying as to whether it is worth while. Since you can only have a single ISA per year, and there seems little incentive to transfer sizeable ones from earlier years to it, it may not be as attractive as it sounds.
Got the paperwork through the post yesterday, will ponder on it till April (since I am paid up for this year).

colsten

spenderdave wrote: »

According to my calculations putting the full ISA allowance of £15240 in at April at 1.5% plus the £120 HSBC topup corresponds to an effective rate of 2.3%. So you really need to look at what other ISAs are paying as to whether it is worth while. Since you can only have a single ISA per year, and there seems little incentive to transfer sizeable ones from earlier years to it, it may not be as attractive as it sounds.
Got the paperwork through the post yesterday, will ponder on it till April (since I am paid up for this year).

It can be very attractive for all sorts of people, for example:

1. those that would never max their ISA allowance - which is the vast majority of all cash ISA holders.
2. those who normally put much or all of their ISA allowance into an S&S ISA
3. those who can transfer just £300 from a previous year ISA

If all you put in is £300, the interest rate is some 40%. For the average cash ISA saver, who has no more than £7,000 in their ISA, the interest rate would be 3.2% - hard to beat by any other instant access cash ISA in the next 12 months.

People need to do their numbers to see whether it is worth their while.

I'll put £300 into the HSBC cash ISA myself on April 6th, and my remaining £14,940 into my S&S ISA on the same day. Once I have got the 120 from HSBC in April 2016, I'll transfer that ISA into my S&S ISA - unless HSBC make me another irresistable offer at the time.

Cweb

I did say 'this all seems to easy...', so one minor hiccup in that HSBC had an address some 5 years previous since I moved as the auto application stopped me in my tracks. Even though all my mailing comes to my current address and the numerous times I've spoken to them and passed security, and the phone conversion over to the Advance account, this has never once come up.

A quick call (I'm really starting to think they're using the First Direct call centre for Advance account holders as their very good now), and rogue address nuked and loyalty isa account with £300 open. Effective interest rate of 41.5%...

Not bad for a Sunday morning and thanks HSBC for the £120 bribe :beer:

KTF

Opened online in seconds via online banking and £300 is now sitting in the account waiting for the first £10 to arrive at the end of the month.

Might as well go for the regular saver whilst I am at it as well.

Cweb

Just to note the T&C's say the £10 is paid in arrears between the 11th & 31st the following month.

KTF

How convenient as that would then be in the new tax year so they have got you on the hook whilst you wait and see if the first payment arrives

Am not that bothered as my ISA allowance is currently sitting in all the various current accounts earning more interest than it would in an ISA anyway.

eastcorkram

Opened this over the phone. Was already an 'advance' account holder. Still took about twenty minutes.

Westie983

I have taken advantage of this when I logged into my IB today as I got an email about the digital secure key option - yay no more trying to find the stupid thing when I want to log in.

I upgraded my bank account to advance last month when I opened up a regular saver account on the phone and the lovely advisor suggested to me I could upgrade my bank account to advance as I qualify but I thought it was a fee paying account but apparently this changed late last year, so I upgraded my current account, which only has enough funds in it to fund my regular saver which I now have at 6% and not 4% which I was originally opening,

I then log in today to check that the bank account has been upgraded to see the save together option, I always have a loyalty ISA opened last year as I was a bank account customer although the balance was only £1 as I became a non tax payer in April and find I get better interest in my current account then the ISA

This is a good bit of interest for me as I have transferred £300 into the ISA from my current account and now my advance current account will only have enough funds to support my Regular Saver I get extra 120 into my isa and 1.5% and the rest of my ISA allowance is sitting in another current account earning 5%...

Thanks HSBC, lets see how many months they pay the £10!!!

I have just queried it with the Helpdesk when chasing up my advance current account card, the advisor confirmed as long as I keep the advance current account and the loyalty isa then I will qualify as i have made the appropriate credit into the ISA... of course I will keep both of the accounts open, I get 6% on my regular saver and 120 plus interest on £300 deposit can't be bad for seconds of work transferring £1750 in and straight back out each month

onto the next incentive I can find :-)