HSBC Premier Account

Se99paj

I'm in a fortunate position that I could apply for a HSBC Premier Account, if I move some money around I should be able to reach the £50k required.

The travel insurance would be quite useful, I know it doesn't cost much to buy separately but I'd be getting it for free with the account.
I'm particularly interested in the Financial Advice service that they can offer - But would be interested to know if anyone has any experience with this, do they provide quite detailed advice such as reviewing funds that I'm invested in and reviewing my current pensions, or is very basic advice that anyone could Google.

The added benefit is the credit card that can be used for Avios points, but I'll probably use my Amex for this, the HSBC one would just be useful if someone doesn't accept Amex

WillPS

Read "personal financial advisor" as point of contact for account issues who will try to sell you more HSBC products and services.

Bear in mind that moving £50k in to eligible savings and investment products will likely have a way higher opportunity cost than whatever you'd save or gain from HSBC Premier.

Saver101101

Se99paj said:

I'm in a fortunate position that I could apply for a HSBC Premier Account, if I move some money around I should be able to reach the £50k required.

The travel insurance would be quite useful, I know it doesn't cost much to buy separately but I'd be getting it for free with the account.
I'm particularly interested in the Financial Advice service that they can offer - But would be interested to know if anyone has any experience with this, do they provide quite detailed advice such as reviewing funds that I'm invested in and reviewing my current pensions, or is very basic advice that anyone could Google.

The added benefit is the credit card that can be used for Avios points, but I'll probably use my Amex for this, the HSBC one would just be useful if someone doesn't accept Amex

In word NO, but that's just my opinion, In my experience they just try to sell you products which are really of no interest or benefit, the credit card is useful but does have an annual fee and another fee for the additional cardholder, so once you strip out these costs it might not be so much of a benefit over say another Avios Collecting card, but as I say everyone is different so that's just my experience. I have been with them since 1987 (Midland Days) and they are okay, but certainly not spectacular.

Se99paj

WillPS said:

Read "personal financial advisor" as point of contact for account issues who will try to sell you more HSBC products and services.

Bear in mind that moving £50k in to eligible savings and investment products will likely have a way higher opportunity cost than whatever you'd save or gain from HSBC Premier.

Can you expand a bit more on your last point? As far as I can tell there aren't going to be any additional costs than what I have today.

Se99paj

Saver101101 said:

Se99paj said:

I'm in a fortunate position that I could apply for a HSBC Premier Account, if I move some money around I should be able to reach the £50k required.

The travel insurance would be quite useful, I know it doesn't cost much to buy separately but I'd be getting it for free with the account.
I'm particularly interested in the Financial Advice service that they can offer - But would be interested to know if anyone has any experience with this, do they provide quite detailed advice such as reviewing funds that I'm invested in and reviewing my current pensions, or is very basic advice that anyone could Google.

The added benefit is the credit card that can be used for Avios points, but I'll probably use my Amex for this, the HSBC one would just be useful if someone doesn't accept Amex

In word NO, but that's just my opinion, In my experience they just try to sell you products which are really of no interest or benefit, the credit card is useful but does have an annual fee and another fee for the additional cardholder, so once you strip out these costs it might not be so much of a benefit over say another Avios Collecting card, but as I say everyone is different so that's just my experience. I have been with them since 1987 (Midland Days) and they are okay, but certainly not spectacular.

There are two credit cards available, the one I was looking at didn't have an annual fee.

CKhalvashi

Se99paj said:

WillPS said:

Read "personal financial advisor" as point of contact for account issues who will try to sell you more HSBC products and services.

Bear in mind that moving £50k in to eligible savings and investment products will likely have a way higher opportunity cost than whatever you'd save or gain from HSBC Premier.

Can you expand a bit more on your last point? As far as I can tell there aren't going to be any additional costs than what I have today.

IMO it depends what you're transferring across.

If it's just some standalone shares this may be worth doing for about £10/quarter.

If it's something more complicated then it may not be. HSBC savings rates tend to be dire in any event.

WillPS

Se99paj said:

WillPS said:

Read "personal financial advisor" as point of contact for account issues who will try to sell you more HSBC products and services.

Bear in mind that moving £50k in to eligible savings and investment products will likely have a way higher opportunity cost than whatever you'd save or gain from HSBC Premier.

Can you expand a bit more on your last point? As far as I can tell there aren't going to be any additional costs than what I have today.

You'll almost certainly be giving up on more favourable rates elsewhere by meeting that £50k with HSBC requirement. It's a mistake to think this is 'free', in reality there is an opportunity cost of whatever the difference between what  HSBC would charge (fees on investments) and/or pay you (in interest) and what you would get if you didn't limit yourself to HSBC.

As a very crude "easy numbers" example, if you were to save £50k in their 2 year term fixed rate account at 3.75%, you would earn £1875 in interest per year. The MSE top pick currently is Close Brothers at 4.35%, and if you saved all £50k there instead you would earn £2175 in interest per year. The difference is £300, which is a pretty expensive travel insurance policy!

I appreciate the situation with investments is different but I'd be quite surprised to find HSBC genuinely offer the most cost effective solution here either.

Se99paj

WillPS said:

Se99paj said:

WillPS said:

Read "personal financial advisor" as point of contact for account issues who will try to sell you more HSBC products and services.

Bear in mind that moving £50k in to eligible savings and investment products will likely have a way higher opportunity cost than whatever you'd save or gain from HSBC Premier.

Can you expand a bit more on your last point? As far as I can tell there aren't going to be any additional costs than what I have today.

You'll almost certainly be giving up on more favourable rates elsewhere by meeting that £50k with HSBC requirement. It's a mistake to think this is 'free', in reality there is an opportunity cost of whatever the difference between what  HSBC would charge (fees on investments) and/or pay you (in interest) and what you would get if you didn't limit yourself to HSBC.

As a very crude "easy numbers" example, if you were to save £50k in their 2 year term fixed rate account at 3.75%, you would earn £1875 in interest per year. The MSE top pick currently is Close Brothers at 4.35%, and if you saved all £50k there instead you would earn £2175 in interest per year. The difference is £300, which is a pretty expensive travel insurance policy!

I appreciate the situation with investments is different but I'd be quite surprised to find HSBC genuinely offer the most cost effective solution here either.

Thanks for explaining, in my case the significant majority is already in a HSBC S&S ISA, so moving to the Premier account won't increase my fees. I probably should review the fees I'm paying though and compare with other providers.
The rest is currently in a Marcus ISA that gets 2.5% which is the same as HSBC.

I appreciate you don't get anything for free, but I won't be paying more than I do now if I move to Premier.

WillPS

Se99paj said:

WillPS said:

Se99paj said:

WillPS said:

Read "personal financial advisor" as point of contact for account issues who will try to sell you more HSBC products and services.

Bear in mind that moving £50k in to eligible savings and investment products will likely have a way higher opportunity cost than whatever you'd save or gain from HSBC Premier.

Can you expand a bit more on your last point? As far as I can tell there aren't going to be any additional costs than what I have today.

You'll almost certainly be giving up on more favourable rates elsewhere by meeting that £50k with HSBC requirement. It's a mistake to think this is 'free', in reality there is an opportunity cost of whatever the difference between what  HSBC would charge (fees on investments) and/or pay you (in interest) and what you would get if you didn't limit yourself to HSBC.

As a very crude "easy numbers" example, if you were to save £50k in their 2 year term fixed rate account at 3.75%, you would earn £1875 in interest per year. The MSE top pick currently is Close Brothers at 4.35%, and if you saved all £50k there instead you would earn £2175 in interest per year. The difference is £300, which is a pretty expensive travel insurance policy!

I appreciate the situation with investments is different but I'd be quite surprised to find HSBC genuinely offer the most cost effective solution here either.

Thanks for explaining, in my case the significant majority is already in a HSBC S&S ISA, so moving to the Premier account won't increase my fees. I probably should review the fees I'm paying though and compare with other providers.
The rest is currently in a Marcus ISA that gets 2.5% which is the same as HSBC.

I appreciate you don't get anything for free, but I won't be paying more than I do now if I move to Premier.

Yes, as you've identified 'no difference in cost to now' is not quite the same as 'no cost'.

That said if you're happy with with your HSBC products performance and wouldn't move elsewhere then it'd be silly not to take the benefits.

ForumUser7

Is HSBC strict re the eligibility criteria? I.e. if you were to put 50k in savings with them, apply for premier, and then once accepted move it out elsewhere again, would they let you stay on premier or do they frequently review and downgrade those who do that?

wmb194

Se99paj said:

WillPS said:

Se99paj said:

WillPS said:

Read "personal financial advisor" as point of contact for account issues who will try to sell you more HSBC products and services.

Bear in mind that moving £50k in to eligible savings and investment products will likely have a way higher opportunity cost than whatever you'd save or gain from HSBC Premier.

Can you expand a bit more on your last point? As far as I can tell there aren't going to be any additional costs than what I have today.

You'll almost certainly be giving up on more favourable rates elsewhere by meeting that £50k with HSBC requirement. It's a mistake to think this is 'free', in reality there is an opportunity cost of whatever the difference between what  HSBC would charge (fees on investments) and/or pay you (in interest) and what you would get if you didn't limit yourself to HSBC.

As a very crude "easy numbers" example, if you were to save £50k in their 2 year term fixed rate account at 3.75%, you would earn £1875 in interest per year. The MSE top pick currently is Close Brothers at 4.35%, and if you saved all £50k there instead you would earn £2175 in interest per year. The difference is £300, which is a pretty expensive travel insurance policy!

I appreciate the situation with investments is different but I'd be quite surprised to find HSBC genuinely offer the most cost effective solution here either.

Thanks for explaining, in my case the significant majority is already in a HSBC S&S ISA, so moving to the Premier account won't increase my fees. I probably should review the fees I'm paying though and compare with other providers.
The rest is currently in a Marcus ISA that gets 2.5% which is the same as HSBC.

I appreciate you don't get anything for free, but I won't be paying more than I do now if I move to Premier.

Virgin Money's offering 4.25% on a one year Isa and 3% on instant access so you can calculate the opportunity cost between these and 2.5%.

https://moneyfacts.co.uk/isa/fixed-rate-isas/?quick-links-first=false