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

wiseonesomeofthetime

Beddie 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.

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.

How many fortnights do you wait though before taking the plunge with any savings account offering atm?

As you say, it is very fluid currently.

nastyphoenix

MSE_Ben_T said:

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. 

Read the full story here:

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

If you haven’t already, join the forum to reply.

Beats the 1.5% I am getting with Halifax which is 2 years locked in an ISA. Seems there is nowhere at the moment to keep up with inflation

Daliah

nastyphoenix said:

MSE_Ben_T said:

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. 

Read the full story here:

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

If you haven’t already, join the forum to reply.

Beats the 1.5% I am getting with Halifax which is 2 years locked in an ISA. Seems there is nowhere at the moment to keep up with inflation

Depending on how far you are into the 2 years, and what the penalty for early redemption is, you might want to consider requesting a transfer to a better rate. Though you are absolutely right, no savings account will keep up with inflation.

Also, do you actually benefit from having your savings in an ISA?

Beddie

wiseonesomeofthetime said:

Beddie 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.

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.

How many fortnights do you wait though before taking the plunge with any savings account offering atm?

As you say, it is very fluid currently.

At least one, maybe two. I personally am happy to be near the top, when it comes to savings rates, but I don't always need to be the very best. So I will wait until rates settle down and most have announced, after a base rate change. Just my personal method though and I am not criticizing anyone who moves every time there is a slight change. Each to their own!

Daliah

Beddie said:

wiseonesomeofthetime said:

Beddie 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.

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.

How many fortnights do you wait though before taking the plunge with any savings account offering atm?

As you say, it is very fluid currently.

At least one, maybe two. I personally am happy to be near the top, when it comes to savings rates, but I don't always need to be the very best. So I will wait until rates settle down and most have announced, after a base rate change. Just my personal method though and I am not criticizing anyone who moves every time there is a slight change. Each to their own!

How do you know when rates have settled down? How do you know when / that most have announced? How do you know which providers are reacting to base rate changes?

DjangoUnchained

as i already bank with hsbc it took me less than 30 seconds to open and fund this account. seems a good deal although anything over 10k you only get a much lower interest, but for up to 10k 3% seems ok, good enough for an emergency fund .

Zaul22

At the end of the day any account with hoops to jump through will soon be beaten by a bog standard easy access account with no hoops. Just wait. 

phillw

kaMelo said:
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.)

(2.97 - 2.81) x 10000 / 100 / 12

As you only get 2.96% on balances up to £10000 and 0.75% above that, the APR works out around 2.97% not 3%

Sensory

phillw said:

kaMelo said:
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.)

(2.97 - 2.81) x 10000 / 100 / 12

As you only get 2.96% on balances up to £10000 and 0.75% above that, the APR works out around 2.97% not 3%

£10,000 for 12 months (ignoring monthly rounding)

• HSBC: £10,297.02
• Al Rayan: £10,284.65

£12.37 difference in total = ~£1.03 a month

Al Rayan's 2.81% is gross p.a. which is 2.8465% AER.

10000 x (1 + (0.0281 / 12))^12 = 10284.65

phillw

Sensory said:
Al Rayan's 2.81% is gross p.a. which is 2.8465% AER.

10000 x (1 + (0.0281 / 12))^12 = 10284.65

I thought al rayan was 2.81 apr, not gross..

So yeah, its even closer than I thought