HSBC my investment

Mrc44

Hello , 
I was in local branch of HSBC earlier today moving a bit of money around and the woman I was dealing with went on to try and push the “HSBC my investment” product on to me saying it would be a good choice for some of my £££. Now I asked her saying I already pay into a SaS isa wether it counts as a SaS isa with it being called “investment” but she said no it’s a totally different product and you can have it alongside any other type of isa. Has anyone had any experience with this or is she simply giving out bad advice. I can’t find anything on there site clarifying what type of “account” it would fall under. I don’t plan on jumping into it as the rates seems high but was just curious about this “investment” product they are pushing. 

Thank you 

cattie

Any investment or savings product pushed by your high street bank is unlikely to be the best outcome for your money.
The investment the employee was talking about will have an advice fee of 0.5% & an ongoing cost of 0.49%. I think I'd prefer to individually find my own HSBC fund to invest in & work out the cheapest platform to hold it on.  It's probably an GIA she is talking about, A General Investment Account, which will be taxable. If you pay tax it's best to stick to an isa if you haven't maxed out this years allowance.

If you haven't checked out which will be the best cost effective platform for you then have a look at these sites.
http://www.comparefundplatforms.com/
https://monevator.com/compare-uk-cheapest-online-brokers/
I hold the HSBC Global Balanced fund on iweb, but I make lump sum payments & not regular payments & this platform works out cheapest for me.

Mrc44

Thank you for your reply Cattie 
I already hold and contribute to a S&S isa at much lower rates than the HSBC product so won’t be jumping on that, I was just intrigued as to what category it fell in when she said you could definitely invest in that alongside a SaS isa during the same tax year over the £20’000 allowance. 

masonic

People were investing in S&S long before ISAs existed.

bowlhead99

Mrc44 said:

Thank you for your reply Cattie 
I already hold and contribute to a S&S isa at much lower rates than the HSBC product so won’t be jumping on that, I was just intrigued as to what category it fell in when she said you could definitely invest in that alongside a SaS isa during the same tax year over the £20’000 allowance. 

The My Investment product can be done either inside or outside an ISA. It is simply a service that charges you a one-off advice fee to set you up with one of their investment products.

If it was done inside an ISA, the type of ISA would be S&S ISA, which would be incompatible with the fact that you are already contributing to another S&S ISA this tax year. So, they might recommend you use their ISA (e.g. with next year's allowance) but even if you can't or don't want to, you can still invest with them outside an ISA instead. 

They're right that you could still use their service to invest, alongside the fact that you are investing in an S&S ISA elsewhere - because if they knew that you had the other ISA they would just have you do the HSBC-arranged investment outside an ISA. Whereas if your S&S ISA allowance hadn't been used elsewhere, they could have you invest with them in an S&S ISA.