HSBC Online Bonus Saver - Interest Plummet

Timb3rwulf

Warning folks. I received a letter today informing HSBC are reducing the interest rates on their Online Bonus Saver with effect of 2nd June.

Standard Existing rate
Net 0.2%
Gross 0.25%
Aer 0.25%

Standard new rate
Net 0.08%
Gross 0.1%
Aer 0.1%

Bonus existing rate
Net 0.60 %
Gross 0.75%
Aer 0.75%

Bonus new rate
Net 0.4%
Gross 0.5%
Aer 0.5%

As you can see thats a massive drop! Time to shop around methinks!

Timb

jimjames

Why would anyone have an account at the existing rate let alone the new rate?

PeacefulWaters

Time to shop around methinks

Well better late than never!

redmalc

This is what worries me with HSBC,they have just written to me about a market leading 1.6% cash Isa which is not fixed.
They get all the money in then drop the rates

Herbalus

Everybody does that. Last night I was trying to remember a single occasion where a provider had increased the rate on an account.

Apart from the Barclays consolidation that put everybody on the same rate, which meant for some it improved, I couldn't.

If rates are increasing they will simply close issue 4 and offer the new rate for issue 5. They have their tricks to maximise revenue, and we have ours to maximise our interest.

Mr_K

The time to move away from this was several years ago. When it originally opened it was offering 6%...

Mr_K

Herbalus wrote: »

Everybody does that. Last night I was trying to remember a single occasion where a provider had increased the rate on an account.

Surprisingly this happened to me last week. Virgin informed me they were increasing the interest on their Defined Access Saver from 1.35 to 1.4%, for existing as well as new customers. I haven't booked any foreign holidays as result, but a refreshing change.