Significant drop in gross interest on Loyalty cash ISA

Messiah9

Hi, I have an advanced savings account in HSBC and I also have a Loyalty Cash ISA (LOY ISA ADV)
I checked my statements recently and noticed that starting from May 2020, my gross interest earned has dropped significantly.
I was earning approximately, 18 GBP every month in the form of gross interest but starting from May 2020, this number has dropped to 5 and then Jun 2020 onwards, it kept decreasing consistently. Now, I am earning barely 3 GBP per month as gross interest.
Is that normal? Did something change in bank's process or was there some news I missed?
Could this be related to the change in Bank of England base rate?
I read this article on HSBC site: https://www.hsbc.co.uk/help/bank-of-england-base-rate/
However, it states that the savings account are not directly linked to Bank of England base rate:
"The savings accounts we offer at the moment aren’t directly linked to the Bank of England base rate. That means you won’t see an immediate change to the rate of interest on your savings or investments. "

JGB1955

The bonus rate on the Loyalty Cash Isa is only payable for the first 12 months after each deposit.  My guess is that some of your initial deposits have now reached their first birthday and the interest is therefore reducing.

xylophone

https://www.hsbc.co.uk/savings/products/cash-isa/
Read all the above very carefully.

Had you thought of a transfer to a better rate?
https://moneyfacts.co.uk/isa/

Messiah9

xylophone said:

https://www.hsbc.co.uk/savings/products/cash-isa/
Read all the above very carefully.

Had you thought of a transfer to a better rate?
https://moneyfacts.co.uk/isa/

Thanks for sharing. So that explains it. After the 12 month period expired, I stopped getting a decent interest rate.
I looked at the ISA products listed there and they look good. Can I just transfer the Cash ISA from HSBC directly to any of the ISAs listed there or do I have to transfer the amount to my advanced savings account and then send to the newly opened Cash ISA.
I'm also exploring the option of Vanguard investment ISA right now because the interest rates offered by ISA are barely 1% or 2% at best which is lagging behind the inflation. So it doesn't sound like a good investment strategy to me.

eskbanker

Messiah9 said:
Can I just transfer the Cash ISA from HSBC directly to any of the ISAs listed there or do I have to transfer the amount to my advanced savings account and then send to the newly opened Cash ISA.

When transferring ISAs, always initiate this via the receiving provider's ISA transfer process, so open your new ISA with your chosen provider and ask them to arrange the transfer from HSBC.