HSBC Online Saver account is it worth switching.?

much2much

I am an English Expat now living in Asia,
And as so receive any interest earned Gross
Tax free, at the moment I have my savings
In a Alliance & Leicester off shore account
Currently paying 5.07 % , with 60 days notice
To make a balance withdrawal, with the interest paid
Monthly into my HSBC cheque account in the
Uk, Ive just been told by a friend here, about the
HSBC Online Saver account, currently paying
6.25 % , as a current account holder of a HSBC
Account, I can apply for the HSBC OnlineSaver
and have the interest paid Gross.

I am wondering if I should switch from my
Current A+L off shore account, to the HSBC
Onlinesaver account, having never before heard of
This HSBC account does any one know the past
Performance and history along with any advice
Or comments about this account, I am only
Looking for a long term monthly return and not to
Move the account balance around.

Many Thanks

Secret_Wookie_2

There is a one word answer to your question. No.

The longer answer is that there are better accounts than HSBC's Online Saver that don't have a withdrawal penalty. Bradford & Bingley at 6.40% AER, Icesave at 6.30% and Sainsburys at 6.25% being the current favourites.

Milarky

The main catch with this account is that you will receive no interest in the month that you make a withdrawal. You can get the interest paid out each month, I believe, but you have have a 'back-up' account at least ready to receive any capital you don't intend to use and time withdrawals to the 1st of the month. First direct are linked to HSBC and they do a similar account paying 5.75% (with the same restrictions) and will bring out a new account paying 5.50% (without restrictions) in November. Transfers between these accounts and the HSBC one are instant (because they share the same bank network) so it is possible to may one 'penalty free' withdrawal each month (but get a lower rate in that month) from the HSBC by moving the whole balance less the amount withdrawn to the secondary accounts mentioned - and then back into the HSBC on the first of the following month.

These types of accounts should really be avoided if at all possible.

From May next year 'Faster Payments' will arrive - so that bank-to-bank transfers will speed up and you could then do the same thing with the HSBC account and a non-HSBC backup account

much2much

Thanks for the quick replys, as I am not planning to normally move any
Account balance, only have the Monthly interest payment automatically transferred from the HSBC Online Saver account to my HSBC UK cheque account, which I then can electronically can transfer to my Asia Bank account on
A six monthly basis, I am not too concerned about the HSBC penalty
Of no interest being paid on a Month where you make a balance
withdrawal. Having said that I am still looking for other options
for an account where I can deposit a lump sum ( sterling ) and then receive a Monthly interest return ( Gross ) . One new account application problem I think would be
that I only have a home address here in Asia, and I think may be if I apply
for a new account with a new provider , they may require me to have a UK home address Etc..? so the HSBC Online saver , as I am a current HSCB account holder
does look promising interest % wise, along with the facility to run the account
via the internet from here in Asia.

Your comments to the above most welcome …

Many Thanks…..

rail.link

much2much wrote: »

Thanks for the quick replys, as I am not planning to normally move any
Account balance, only have the Monthly interest payment automatically transferred from the HSBC Online Saver account to my HSBC UK cheque account, which I then can electronically can transfer to my Asia Bank account on

Would that count as a withdrawal, I wonder ?

gt94sss2

Whether you decide to move from A&L or not is up to you, though 5.07% for a 60 day account does not sound that good these days.

Details of the HSBC Online Saver account are on their website here

As others have said, they pay a decent interest rate (not the highest, but competitive) on the account. However, you do not get any interest in any month you make a withdrawal.

Having said that, when setting up the account you can ask for the monthly interest to be automatically paid to another HSBC account - and this is not counted as a 'withdrawal' so you would continue to get interest.

Other things to note is that they may pay a lower rate of interest on anything above £50,000 in the account.

However, if you are saving £50,000+ with HSBC in total you also qualify free for their HSBC Premier service which you may find useful as you are living abroad - in particular if you also bank with HSBC in Asia, as I believe they allow fee free money transfers between your own HSBC accounts globally. Also, if you qualify for the HSBC Premier service in one country, you automatically get it in all others including HSBC Offshore if you still want/need a offshore account for any reason.

Alliance and Leicester do have a virtually identical account in the UK here which you may want to look at as well though I think if the balance goes below £5,000 or above £100,000 they pay no interest at all - so read their T&C carefully.

However, generally speaking I think the lack of a UK address is going to make it difficult for you to open accounts with new institutions.

Regards
Sunil

much2much

gt94sss2 ... Thanks for the comments, the HSBC Premier service sounds interesting as I do arrange transfers of funds from my UK HSBC account
to my Asia Bank account, and as you say ...generally speaking I think the lack of a UK address is going to make it difficult for you to open accounts with new institutions.... is a factor in any future move of accounts I make .... would you know where I can see some information about the past performance of
the HSBC Online saver account ..? and are there any past or current users of
the HSBC Online Saver account who can please comment on the overall
performance and usability Etc of this account ..?

Many Thanks

gt94sss2

much2much wrote: »

.... would you know where I can see some information about the past performance of
the HSBC Online saver account ..? and are there any past or current users of
the HSBC Online Saver account who can please comment on the overall
performance and usability Etc of this account ..?

The AER of the account seems to go up/down by the same as any Bank of England base rate when HSBC update their interest rates to reflect any changes in base rates (normally a couple of weeks after the BoE change their rates). I believe the historic interest rates are here

I'm not 100% sure what you mean by the usability/performance of the account as it appears on your HSBC internet banking as a separate account and its as easy to transfer funds in/out of this account to another HSBC account, as it would be for any other HSBC account you have listed in internet banking..

Regards
Sunil

much2much

Thanks again Sunil,

your comments and advice most appreciated ...

Many Thanks...

rarrarrar

"Transfers between these accounts and the HSBC one are instant (because they share the same bank network) so it is possible to may one 'penalty free' withdrawal each month (but get a lower rate in that month) from the HSBC by moving the whole balance less the amount withdrawn to the secondary accounts mentioned - and then back into the HSBC on the first of the following month."

A good tactic I used to do this move between my own and my wifes account .

BUT

Beware you cant move >10k from HSBC per day even to your own FD account without fees. FD to HSBC no problems or limits !

gt94sss2

rail.link wrote: »

Would that count as a withdrawal, I wonder ?

No - having the monthly Online Saver interest automatically paid to another HSBC account is not considered as a withdrawal.


Regards
Sunil