HSBC Online Bonus Saver

[Deleted User]

Bridlington1 said:

westv said:

Bridlington1 said:

westv said:

Is the "hack" that allows you to withdraw money but not lose the bonus still available? Or maybe I have got that wrong and there is no such thing??

You will earn the bonus interest rate in any given calendar month provided you don't withdraw during that calendar month. If you withdraw money from the account you don't earn the bonus interest for the entirety of that calendar month. So if you withdraw money on 1st of the month, empty the account in the process and never put any money back into it until 1st of the following month your interest loss will be minimal.

I must have misunderstood the benefit of the "hack".
Surely taking all the money out on the 1st of one month and then redeposit on the 1st of the following month you will earn less interest (even with forfeiting the bonus) than if you had left it where it was and just taken out what you needed?

Say you had some money in the account and you withdraw some of it on 15th August. The standard interest rate would apply from 1st-31st August. It doesn't matter when in the month you withdraw, you will earn just the standard rate for the whole of August. The advantage of making withdrawals only on 1st is that you minimise the amount of time your savings are kept at the lower rate of interest. I can't ever recall the standard rate of the HSBC bonus saver being above the top easy access rates so if you need to withdraw at any point in August, a good option would be to withdraw the entire balance on 1st and put what you don't need in the top paying easy access account, before adding funds to the bonus saver on 1st September (assuming you don't need the funds in September).

Regardless though even the bonus rate of 4% is quite a poor rate these days given that you can up to 4.63% on an easy access account elsewhere. 

It's not really in direct competition with a best buy account in that sense as it clearly aimed at HSBC customers.
It's for those already with an HSBC current account and want in-house savings with a decent rate. 

ranciduk

The non bonus rate will soon go up to 2%

phillw

westv said:
Surely taking all the money out on the 1st of one month and then redeposit on the 1st of the following month you will earn less interest (even with forfeiting the bonus) than if you had left it where it was and just taken out what you needed?

It only works if you put the remaining money in an easy access savings account that pays more than 1.75%, if you are going to leave it in a current account earning no interest then you may as well leave the money in the bonus saver.

However it's so easy to find an easy access account that pays more than 4.0%, that it's hard to justify having any money in an HSBC bonus saver anyway.

ranciduk

Considering their astronomical profits announced last week , hopefully it will go up soon!