HSBC savings

Jr121212

Morning all. I'm new to this but would appreciate some advice. Having always been in a little bit of debt usual credit cards loan etc, I recently came into some money. Cleared debt and had approx £100k left over. Rather than rushing into anything spent a month mulling over what to do whilst the funds sat in my HSBC instant access savings which is linked to my HSBC advance account. Just received first monthly interest payment which seemed very low. So I messaged hsbc who replied to say the rate is 0.05%. Now this clearly isn't where the money will stay but I firstly wondered how can hsbc pay me a lower rate of interest than anything they advertise to any customer?
As a side note wouldn't you expect your bank who you have been with 15 years to contact you and suggest one of their higher interest paying accounts of only to try and keep you as a customer.
I might be barking up the wrong tree but just seems very poor from HSBC.
I've just opened a 123 Santander which with cash backs will earn me 650 ish a year for having £20k in as this seemed the sensible thing to do to start with.

mollycat

I always assume the responsibility of knowing what the terms and conditions are of any accounts/ insurance policies are and move my custom if those T&C's don't meet my needs.

Why would you want any bank/ buisiness to discourage your independance by doing this for you?

At least you have now discovered what rate of interest you are getting and are doing something about it.

Good luck.

Twiggy_34

Off on a mild tangent here, but here's a link someone on another thread gave me recently which might help you to work out what to do from a savings POV!

https://forums.moneysavingexpert.com/discussion/5374614

Jr121212

Thanks mollycat. My issue is more how they are able to pay me a rate of interest lower than any savings accounts they advertise. Thanks for your reply :-)

mollycat

Jr121212 wrote: »

Thanks mollycat. My issue is more how they are able to pay me a rate of interest lower than any savings accounts they advertise. Thanks for your reply :-)

A rate of interest that you didn't know.

£100K in an account for x1 month you didn't know the interest rate for.

And it's someone else's fault?

Don't bother with another sarcastic, "Thanks for your reply :-)".

I'm out.

eskbanker

Jr121212 wrote: »

My issue is more how they are able to pay me a rate of interest lower than any savings accounts they advertise

All banks do this - there is obviously only a certain range of accounts available to new customers at any given point in time, but existing products will still continue even if no longer accepting new applications.

If you go to https://www.hsbc.co.uk/1/2/hsbc-interest-rates, you'll see all the rates for currently available products, but scroll down about two-thirds of the way down the page and you'll find the 'products no longer sold' section, which includes your instant access saving account with its derisory 0.05% rate.

YorkshireBoy

I'm not sure why you're wanting to blame HSBC?

You came into £100K. You must have known it was coming surely? You chose not to research your options prior to receiving it. Furthermore you chose not to check out the rate for a month after receiving it.

Even if they had suggested another instant access account (the Online Bonus Saver), the best you could have got was 0.5%...and even that fell to 0.1% in any month in which you made a withdrawal.

If you want to keep it in cash, you could get c£50K of it making 3-5% AER. If there are two of you, using joint accounts you can get the whole £100K making the same 3-5% AER.

colsten

You are also taking an unnecessary risk if you keep more than £75K in sole accounts in any single financial institution.

Jr121212

It wasn't meant that way. Perhaps you got out of bed on the wrong side grumpy.