40k at zero interest SHOCKER!

JamesNoBonds

Similar to my own position of a year or so ago (though with a 'different' bank) A family member has had an account with HSBC for 2 decades and it has and still is paying 0% interest. Which is absolutely Shocking!!!! 

Just over 40k is in this account and they would like to obviously transfer almost 40k of this somewhere else whether in one or more other accounts.

Any ideas on what I should advise them? One of the main differences to my own situation is that they do not have a smartphone - though do have regular internet access (my Tandem account - see my other thread here- was only available via a smartphone App as I recall so would not be suitable).

They also do not need regular access to this money, though would prefer it if the interest rates are not that different (as a side note I have an Instant access account with Tandem that is still paying 4.65% interest where as my fixed saver is at 5%).

Thanks.

masonic

You could take a look at https://forums.moneysavingexpert.com/discussion/6392978/top-easy-access-acs-ranked-top-of-the-pots-no-chat

Or https://moneyfactscompare.co.uk/savings-accounts

Bigwheels1111

A few months interest would pay for a suitable mobile.
Even if it was just used for banking.

Raisin can be accessed via ie, Firefox etc.
They have Isbank at 4.5% for 5 and 7 year fixed, annual payout.

Coventry building society have 5.15% easy access and is accessible via ie etc.

Janie2008

The Coventry triple access at 5.15% would be good.  They would probably  be comfortable with a large building society. 

jacksonreed003

As your family member doesn't need regular access to the money then they could explore options like certificates of deposit (CDs) or longer-term saving accounts because they typically offer higher interests rates in exchange for locking in the funds for a set period of time. Or advice them to diversify their savings across multiple accounts to maximize their returns while still maintaining accessibility to their funds.

masonic

jacksonreed003 said:

...then they could explore options like certificates of deposit (CDs)...

Bot or just unaware this is a UK-based forum?

Olinda99

another option is premium bonds

elkiedee

I quite like the sound of some of the Coventry Triple Access accounts, ISA and not ISA, and they are offering quite good interest rates. If I opened one I'd need to be able to manage it online as there isn't a branch. If this relative hasn't made use of their ISA allowance, and particularly if they could split the money between a Triple Access ISA and another Triple Access account, as if they do need some of the money that gives access to 3 withdrawals for each account. I also quite like the sound of interest paid monthly.

If your relative is happy with the HSBC current account as a current account - day to day access and stuff like debit cards - it might be worth having a very instant access savings account there, just keeping enough in current account to meet day to day needs and keeping, say, another £1K in an account earning even a low rate of interest, being able to switch money between current and instant access HSBC savings, then putting everything else somewhere they can earn a much better rate of interest. 

If they're not happy with the HSBC as current account holder either, they can also open a current account elsewhere. I'm not moving my own HSBC current account at the moment but have opened a Nationwide one with a debit card but no overdraft facility, which gives me access to better savings interest rates than HSBC on terms and conditions which meet my current needs and flexibility to reorganise things easily when/if circumstances change. (A little designated spending money in instant access, and an old ISA account with more than £20K transferred into a 1 year triple access ISA at a much better interest rate).

LHW99

If they don't want complications, and can use a PC / tablet, even HSBC can do better than 0%

https://www.hsbc.co.uk/savings/interest-rates/

elkiedee

OP says this relative would like something similar to the rates he's getting (well over 4% I think), can be online and limited access but not app only based. HSBC savings rates are literally better than nothing, but they're not going to match that. On 40K, 1% is £400.

inflationbuster

Marcus are offering 4.75%