HSBC current account customer? You can now get 3% ‘easy-access’ on your savings

MSE_Ben_T

HSBC has upped the rate of its Online Bonus easy-access savings account to 3%, beating the top market rates. You'll need to have (or get) an HSBC current or savings account to get it, however, and the rate is significantly dented if you withdraw money. Here’s how it compares. 

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HSBC current account customer? You can now get 3% 'easy-access' on your savings

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RG2015

I have an HSBC savings account and have just opened their Online Bonus Saver. However I cannot set up a payee from either of my savings accounts so I cannot get my money out.

Looks like I will have to open a new HSBC current account.

And if that was not bad enough I have just got an email from HSBC saying my new Online Bonus Saver is open and is paying 1.30% AER include a bonus of 1.10% AER.

HSBC appear to be in a bit of a mess.

phillw

I saw this yesterday,

If you put £10000 in there you basically get around 2.97% apr as the interest only compounds at the 0.75% you get on balances > £10000 (which is why they say up to 3% apr).

I haven't opened one because I need to check whether you can withdraw all the money on the 1st of the month to avoid any penalties. If a withdrawal always costs you a months interest at the higher rate no matter when you withdraw it, then I don't think it's worth moving money out of al rayan/santander esaver. Especially as they can drop the rate.

Steve_xx

Yes. Withdrawing the whole balance on the 1st of the month would avoid penalty.

phillw

Steve_xx said:

Yes. Withdrawing the whole balance on the 1st of the month would avoid penalty.

Ok, just need to work out whether I can be bothered to open it for £1.33 a month (at current rates)

It kinda ends up working like a notice account, because you have to wait an average of 15 days to avoid a penalty.

Daliah

There'll no doubt soon be other, less restrictive, 3%+ instant access accounts. In the meantime, the 2.8% / 2.81% Gatehouse and Al Rayan accounts are great places to store your money - though Al Rayan wants to see a £5k opening deposit. At least these allow unlimited withdrawals, and don't penalise you with nearly a month's worth of interest if you want/need to make a withdrawal.

phillw

Daliah said:

There'll no doubt soon be other, less restrictive, 3%+ instant access accounts. 

It's variable rate, so it could go up with them. We're in such turbulent times that it's kinda hard to predict what will happen.

kaMelo

To be fair you wouldn't park money in there that you know you're going to need soon, even with a workaround of withdrawing the entire balance at the start of the month it's a faff I'd avoid for money I know I need, I'd rather park it in Al Rayan.
However, nowhere else is offering 3% with instant access on a £10,000 lump sum, this currently makes it the best place to park an emergency fund.

Steve_xx

phillw said:

Steve_xx said:

Yes. Withdrawing the whole balance on the 1st of the month would avoid penalty.

Ok, just need to work out whether I can be bothered to open it for £1.33 a month (at current rates)

It kinda ends up working like a notice account, because you have to wait an average of 15 days to avoid a penalty.

Not sure how you got to £1.33 a month. On a balance of 10k you would gain around £25 a month.

kaMelo

Steve_xx said:

phillw said:

Steve_xx said:

Yes. Withdrawing the whole balance on the 1st of the month would avoid penalty.

Ok, just need to work out whether I can be bothered to open it for £1.33 a month (at current rates)

It kinda ends up working like a notice account, because you have to wait an average of 15 days to avoid a penalty.

Not sure how you got to £1.33 a month. On a balance of 10k you would gain around £25 a month.

I think they're referring to the difference in interest received between HSBC and Al Rayan (although I work it out at £1.59 more per month in HSBC.)

Beddie

phillw said:

Steve_xx said:

Yes. Withdrawing the whole balance on the 1st of the month would avoid penalty.

Ok, just need to work out whether I can be bothered to open it for £1.33 a month (at current rates)

It kinda ends up working like a notice account, because you have to wait an average of 15 days to avoid a penalty.

I think you know the answer already - no, it isn't worth it. Easy access will be above 3% soon anyway. Look at the stampede to Santander, if they'd waited a fortnight, Al Rayan put their rate up and beat it.