HSBC GIC £100 Cashback.

P3

What did you guys went for?

What is the cheapest available 100% bond?

kaMelo

P3 said:

What did you guys went for?

What is the cheapest available 100% bond?

Well I didn't go for a bond, I went with the Adventurous Global Strategy Portfolio, fund charges 0.31% on top of platform fee of 0.25% so 0.56% in total.  Not the cheapest but not too bad either.

As for which is the cheapest bond, there's a lot to go through. Have a look yourself.

https://www.hsbc.co.uk/investments/products-and-services/global-investment-centre/funds/#HSBCGlobalAssetManagementUKLtd

I also received the £100 cashback today so that was a pretty swift pay out, oh, and I'm currently up £53. (very tiny yay)

P3

george4064 said:

Noticed there are a few Money Market Funds available, which means you should be able to earn the £100 offer without much risk. Netting you a £75 profit after fees (1.875%).

How did you come up with 1.875% fee?

I found ASI sterling money market at 0.16% plus 0.25% account fee. At £4000, the fee should be £16.40, (profit £83.60)

Have I missed some fee out?

kaMelo

P3 said:

george4064 said:

Noticed there are a few Money Market Funds available, which means you should be able to earn the £100 offer without much risk. Netting you a £75 profit after fees (1.875%).

How did you come up with 1.875% fee?

I found ASI sterling money market at 0.16% plus 0.25% account fee. At £4000, the fee should be £16.40, (profit £83.60)

Have I missed some fee out?

No, your figures are correct although bear in mind what you could get from a 1 year savings bond. Current best is BLME Premier Deposit Account at 1.05%, so £42 on £4,000. Deduct that from your £83.60 and you get a more accurate figure of around £41.

P3

Normally I go with the highest risk, ie invest engine, NatWest invest, but those are few hundred quids.

With this being £4000, I can't see myself staying after 1 year. I don't want something (equity) that I'm forced to stay if I'm in the minus, if I want to invest big amount I rather go with AJ bell or vanguard.

I got it down to 3 option, 

ASI sterling money market 0.16% pretty much guarantee no risk.

iShare corporation bond 0.14% 

iShare UK gilt 0.11%

quirkydeptless

P3 said:

What did you guys went for?

What is the cheapest available 100% bond?

My plan wasn't to put it in something low risk and then sell after the 12 months.

I put mine in HSBC FTSE All World Index. Just means an equity purchase went on he HSBC platform rather than somewhere else. I can decide after the cashback requirement year is up whether to leave it parked with HSBC or to transfer it, but the timing of the offer worked for me so I can leave it staying invested.

So HSBC, you've got 12 months to make me feel like I want to keep my money there

£100 is a nice start

george4064

P3 said:

george4064 said:

Noticed there are a few Money Market Funds available, which means you should be able to earn the £100 offer without much risk. Netting you a £75 profit after fees (1.875%).

How did you come up with 1.875% fee?

I found ASI sterling money market at 0.16% plus 0.25% account fee. At £4000, the fee should be £16.40, (profit £83.60)

Have I missed some fee out?

It's a net 1.875% return.

Deposit £4,000, pay 0.15% in fees (£6) and earn £100 cashback, so £94 which is circa 2.35% over the 12 months.

wmb194

george4064 said:

P3 said:

george4064 said:

Noticed there are a few Money Market Funds available, which means you should be able to earn the £100 offer without much risk. Netting you a £75 profit after fees (1.875%).

How did you come up with 1.875% fee?

I found ASI sterling money market at 0.16% plus 0.25% account fee. At £4000, the fee should be £16.40, (profit £83.60)

Have I missed some fee out?

It's a net 1.875% return.

Deposit £4,000, pay 0.15% in fees (£6) and earn £100 cashback, so £94 which is circa 2.35% over the 12 months.

You're assuming 20% tax? It's cashback, there's no tax due.

george4064

wmb194 said:

george4064 said:

P3 said:

george4064 said:

Noticed there are a few Money Market Funds available, which means you should be able to earn the £100 offer without much risk. Netting you a £75 profit after fees (1.875%).

How did you come up with 1.875% fee?

I found ASI sterling money market at 0.16% plus 0.25% account fee. At £4000, the fee should be £16.40, (profit £83.60)

Have I missed some fee out?

It's a net 1.875% return.

Deposit £4,000, pay 0.15% in fees (£6) and earn £100 cashback, so £94 which is circa 2.35% over the 12 months.

You're assuming 20% tax? It's cashback, there's no tax due.

Not assuming any tax, when I say 'net return' I'm referring to the returns after fees are taken.

wmb194

george4064 said:

wmb194 said:

george4064 said:

P3 said:

george4064 said:

Noticed there are a few Money Market Funds available, which means you should be able to earn the £100 offer without much risk. Netting you a £75 profit after fees (1.875%).

How did you come up with 1.875% fee?

I found ASI sterling money market at 0.16% plus 0.25% account fee. At £4000, the fee should be £16.40, (profit £83.60)

Have I missed some fee out?

It's a net 1.875% return.

Deposit £4,000, pay 0.15% in fees (£6) and earn £100 cashback, so £94 which is circa 2.35% over the 12 months.

You're assuming 20% tax? It's cashback, there's no tax due.

Not assuming any tax, when I say 'net return' I'm referring to the returns after fees are taken.

So, using your numbers,
0.25% annual platform fee on £4,000 investment = £10.00
0.15% annual fund fee on £4,000  = £6.00
Total annual fees = £16.00
£100 cashback - £16.00 = £84.00
£84.00 / £4,000 = 2.10%

What am I missing?