HSBC GIC £100 Cashback.

george4064

wmb194 said:

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?

You’re not missing anything.

If you wanted to be a bit pedantic, the only piece you’re missing is the actual fund’s return, but given its a money mrket fund I think it’s safe to assume it won’t be negative.

colsten

kaMelo said:

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)

And down to £15 today (tiniest of yay, lol). That's the nature of an adventurous fund.

wmb194

george4064 said:

wmb194 said:

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?

You’re not missing anything.

If you wanted to be a bit pedantic, the only piece you’re missing is the actual fund’s return, but given its a money mrket fund I think it’s safe to assume it won’t be negative.

Yes, of course it's simplified. HSBC's fee is taken quarterly so that'll actually be slightly different, too. So where did you get the 1.875% net return?

quirkydeptless

quirkydeptless said:

Nice one!

Timing is great for me and it was pretty straight forward to open and invest. I already had an HSBC current account, and now this appears alongside it.

I can just let it ride now and check back in a year to decide whether to leave it riding or check if I can get some more cashback for transferring it somewhere else

Well it's been a Year now and my £4000 has grown to a whopping £4023.17

Time to sell me thinks

granta

quirkydeptless said:

quirkydeptless said:

Nice one!

Timing is great for me and it was pretty straight forward to open and invest. I already had an HSBC current account, and now this appears alongside it.

I can just let it ride now and check back in a year to decide whether to leave it riding or check if I can get some more cashback for transferring it somewhere else

Well it's been a Year now and my £4000 has grown to a whopping £4023.17

Time to sell me thinks

Thanks for the prompt! Curious to know what you're invested in?
Mine is £4054 - HSBC All World tracker.

Good to time to exit and put into ISA.

quirkydeptless

granta said:

quirkydeptless said:

quirkydeptless said:

Nice one!

Timing is great for me and it was pretty straight forward to open and invest. I already had an HSBC current account, and now this appears alongside it.

I can just let it ride now and check back in a year to decide whether to leave it riding or check if I can get some more cashback for transferring it somewhere else

Well it's been a Year now and my £4000 has grown to a whopping £4023.17

Time to sell me thinks

Thanks for the prompt! Curious to know what you're invested in?
Mine is £4054 - HSBC All World tracker.

Good to time to exit and put into ISA.

HSBC FTSE All Wrld Ind C Acc

granta

quirkydeptless said:

granta said:

quirkydeptless said:

quirkydeptless said:

Nice one!

Timing is great for me and it was pretty straight forward to open and invest. I already had an HSBC current account, and now this appears alongside it.

I can just let it ride now and check back in a year to decide whether to leave it riding or check if I can get some more cashback for transferring it somewhere else

Well it's been a Year now and my £4000 has grown to a whopping £4023.17

Time to sell me thinks

Thanks for the prompt! Curious to know what you're invested in?
Mine is £4054 - HSBC All World tracker.

Good to time to exit and put into ISA.

HSBC FTSE All Wrld Ind C Acc

Thanks! Perhaps you invested a week earlier than I did.