Unable to move money into HSBC Loyalty Cash ISA (annual subscription limit)

Messiah9

Hello,

I have an HSBC loyalty cash ISA account. I have around 40K GBP in this account already. I have not credited any more amount into this account since August 2019. As I understand, I am allowed to add a maximum of 20K GBP in each financial year.

So based on that, I should be able to add another 20K GBP this year?

However, when I try to move any amount from my HSBC savings account to HSBC Loyalty Cash ISA account, I receive the following error:

"Sorry, we are unable to proceed with your request. Please check your account subscription limits."

I even tried with amounts like 1000 GBP which is well below the 20K GBP limit for 1 year.

Does anyone know the reason for this error?

kuratowski

If your last payment in was in August 2019, then you made no payments in the tax year 2020-21.

If you don’t pay money into your account in a whole tax year, you’ll need to reactivate your account
before you can pay money into your account in following tax years.

https://www.hsbc.co.uk/content/dam/hsbc/gb/pdf/savings/loyalty-cash-isa-terms-and-conditions-13-jan-2018.pdf

Apparently in order to "reactivate" it you have to fill out this form

https://www.hsbc.co.uk/content/dam/hsbc/gb/pdf/HSB-99303-3-MCP50875-WEB.pdf 

The "loyalty" interest rate is 0.10%, other banks are available...

Messiah9

kuratowski said:

If your last payment in was in August 2019, then you made no payments in the tax year 2020-21.

If you don’t pay money into your account in a whole tax year, you’ll need to reactivate your account
before you can pay money into your account in following tax years.

https://www.hsbc.co.uk/content/dam/hsbc/gb/pdf/savings/loyalty-cash-isa-terms-and-conditions-13-jan-2018.pdf

Apparently in order to "reactivate" it you have to fill out this form

https://www.hsbc.co.uk/content/dam/hsbc/gb/pdf/HSB-99303-3-MCP50875-WEB.pdf 

The "loyalty" interest rate is 0.10%, other banks are available...

Thanks. I will check it.

Regarding low interest rate, that's true. Unfortunately, I cannot open any new bank account in UK because of issue created on my credit report by Vodafone which I have described in length in another thread on this forum.

I would love to open other bank account, explore other opportunities but my new bank applications get rejected.

I think the first time I opened an HSBC loyalty cash ISA account back in 2018, it was 0.8% interest if I remember correct.

colsten

Messiah9 said:

 Unfortunately, I cannot open any new bank account in UK because of issue created on my credit report by Vodafone which I have described in length in another thread on this forum.

I don't know the nature of your issue with Vodafone and what the problem with your credit files / CIFAS is, but it is possible that you are prevented from opening credit accounts only (current accounts, credit cards etc). An ISA is not a credit account, so no full credit check gets carried out and even if you had a CCJ, you should still be able to successfully apply for an ISA. Check for the best ISA rates here, and let us know how you get on.

 

Messiah9

colsten said:

Messiah9 said:

 Unfortunately, I cannot open any new bank account in UK because of issue created on my credit report by Vodafone which I have described in length in another thread on this forum.

I don't know the nature of your issue with Vodafone and what the problem with your credit files / CIFAS is, but it is possible that you are prevented from opening credit accounts only (current accounts, credit cards etc). An ISA is not a credit account, so no full credit check gets carried out and even if you had a CCJ, you should still be able to successfully apply for an ISA. Check for the best ISA rates here, and let us know how you get on.

 

Thanks, I will check. Yes, if I remember correctly, I had applied for a current account at Natwest when the application was rejected.

I was worried to apply anywhere else again because I was told that each time I apply for a new bank account elsewhere, they do a credit check and if the check fails, it further pushes down my credit rating.

Great to hear that an ISA can be opened even with a default on credit report. Will look into this more