HSBC Regular Saver - Changing SO to 1st

ForumUser7

Speculator said:

intalex said:

As 5.00% is looking increasingly low for a regular saver, I'm wondering if I should keep this "experiment" running... only just had my 3rd deposit in this morning, so only 2 months into the account...

I know when First Direct increased their offer from 3.50% to 7.00% they increased the rate for existing accounts too, I wonder if (i) HSBC will react to the competition, and (ii) apply a potential new rate to existing accounts ??

Applying new higher rates to existing Fixed rate regular savers only ever happened on one occasion I think and that was about 6 yrs ago with Virgin.

Unlikely it will happen again, especially with HSBC.

I am half way into a HSBC regular and will be reducing my payments to £25, the minimum monthly payment allowed.

I think I'll just stop monthly payments into it - they haven't advertised a penalty for not making the payments - someone may wish to double check this with them though. If they say there is a penalty, ask for the specific clause - that usually gets them to actually check rather than just making it up/getting confused.

intalex said:

That 5% HSBC rate is looking outright poor now... if they don't up it (including on existing accounts) by this time next week, I may be forced to close it down (if allowed, need to check) or down the monthlies to the minimum £25...

Don't close it! Remember the rate reduces to match the flexible saver, and the interest loss is backdated

intalex

ForumUser7 said:

Don't close it! Remember the rate reduces to match the flexible saver, and the interest loss is backdated

It'll only be on £750 over 3 months (or 2 months if HSBC deny the benefit of changing SO date to 1st)... whereas the £750 + £225 (i.e. £25 * 9) could be secured at 5.85+% on a longer term fix.

intalex

intalex said:

That 5% HSBC rate is looking outright poor now... if they don't up it (including on existing accounts) by this time next week, I may be forced to close it down (if allowed, need to check) or down the monthlies to the minimum £25...

HSBC sticking to 5.00% so I've mobilised closure process...

intalex

Coming back to the original question of whether changing the SO date to 1st yields a benefit, I can confirm £1.35 interest has been paid into my account, with the following transactions:
30/04: +£250
01/05: +£250
01/06: +£250
30/06: -£750

By my calculations at the lower flexible saver rate of 1.35% applicable to early closure of the Regular Saver, changing the SO date to 1st does appear to yield a benefit, although my interest calculations come to £1.38 but still the nearest value to the £1.35 interest I actually received.

Section62

intalex said:

Coming back to the original question of whether changing the SO date to 1st yields a benefit, I can confirm £1.35 interest has been paid into my account, with the following transactions:
30/04: +£250
01/05: +£250
01/06: +£250
30/06: -£750

By my calculations at the lower flexible saver rate of 1.35% applicable to early closure of the Regular Saver, changing the SO date to 1st does appear to yield a benefit, although my interest calculations come to £1.38 but still the nearest value to the £1.35 interest I actually received.

From what I've understood of the T&C's, on closure they would treat the account as if it had been a Flexible Saver from day 1 - which would mean the T&C's of the Flexible Saver would apply instead.

Being an instant access account they would then pay interest (in accordance with the T&C's) from the day the cleared funds are deposited, rather than from the monthiversary of the RS account.

In other words they have changed the type of account you had from day 1, and therefore this isn't a reliable indicator of how they might treat early deposits made to an RS account when it comes to interest payments.

We need to see the figures for someone who has shifted the SO date and then let the RS run to maturity (including making a minimum deposit of £25 each month, just in case).

intalex

Old thread, but still a relevant question, anyone managed to find the answers to the 2 questions (validated with independent calculations)?