HSBC savings

jimjames

elkiedee said:

I still have a little money left in an HSBC ISA - the only reason I haven't moved it elsewhere is because it's instant access and it's money I anticipate wanting to spend over the next few months -

There are still instant access ISAs paying around 5% so as it's MSE even if the money is being spent you can earn more interest than HSBC in the meantime

jameseonline

PaulDesmond said:

Hi I have gone to your link and found Virgin money. I have heard ML talk about them before. Just a few questions about one of them.

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

Virgin money Regular Saver. Questions? 

1)        [Rates] there are 2 two one says 10.00% the other 10.38% and both say paid at £1. What does this mean?

2)      I can’t have more than £3,000 in this. Is there a reason for this limit and could I open other savings accounts.

3)       Term 31.07.25. I take it, this the min time it has to be in the account but I will be paying monthly payments into this.

4)      New and existing Virgin Money current account customers from 4/12/19. I don’t have an account.

5)       Missed Payment Penalty. Unused subscriptions from previous months can be made up in subsequent months.

1) 1 is the gross rate & the other is AER (Annual Equivalent Rate) , the £1 is the minimum investment to have the account 

2)It's a regular saver, you can only put in a certain amount each month, with Virgin it's £250 others it could be less or more.

3) pretty sure it's when the account ends but not fully sure because there's various confusion/non clarity/annoyance over the account (see the dedicated thread)

4) you need a virgin Money current account to get the regular saver. Other banks/building societies make you have a current account etc in order to get their regular savings accounts & other loyalty accounts etc, some don't.

I'm in with most of the big banks/building societies etc so when new accounts come up in theory it's going to be easier to apply for.

I keep minimal amounts in some building societies too to be eligible for loyalty products, eg Cambridge, Skipton.

5) if you don't put in the maximum £250 in a month you can put in more the next month or future months to make it up, basically you can't go over the £3000 total deposit amount for the account.

Albermarle

  I can’t have more than £3,000 in this. Is there a reason for this limit and could I open other savings accounts.
With a 10% interest rate, they would be flooded with money if there was no limit.
There are plenty of people who will switch savings provider for an extra 0.1%, never mind 5%.

PaulDesmond

If Virgin are offering 10.38% APR, that would be £300 on a £3,000 investment. Does that mean that after a year, I would be earning interest on the £300 as well as the £3,000?

Digital_Payback

PaulDesmond said:

If Virgin are offering 10.38% APR, that would be £300 on a £3,000 investment. Does that mean that after a year, I would be earning interest on the £300 as well as the £3,000?

No. The Virgin account with the 10.38% APR is a Regular Saver. 

You can only pay in £250 each month to this account, so your £3000 is only in for the last month and not earning interest all year.
In reality, in month one you earn interest on £250, in the second month £500 etc., assuming you pay in the max. allowed each month.  

This Virgin Regular Saver would pay interest of approximately £162.50, if you pay into the account the full £250 for the 12 months. 

PaulDesmond

What I mean is in year two I would have the £3,000 plus the interest which you say would be £162.50. So I earn interest on £3,162.50 starting in year two with increases along the way.

Still don't understand the £3,000 limit. This means I could not add anymore in. Are there other accounts that I could do this with or would I have to fall back on a rubbish ISA as a second investment? Virgin M Plus saver dosn't apear to have a limit but if  am over my allowance, I would be paying "0% on the 5% interest. Efectivly 4% then.

Digital_Payback

PaulDesmond said:

What I mean is in year two I would have the £3,000 plus the interest which you say would be £162.50. So I earn interest on £3,162.50 starting in year two with increases along the way.

Still don't understand the £3,000 limit. This means I could not add anymore in. Are there other accounts that I could do this with or would I have to fall back on a rubbish ISA as a second investment? Virgin M Plus saver dosn't apear to have a limit but if  am over my allowance, I would be paying "0% on the 5% interest. 

The Virgin Reg. Saver is a fixed term (12 months) account, and you would contribute 12 X £250 in total. 

After that, with the accrued interest, the reg. saver becomes an Everyday Saver with a much lower variable rate of interest. 

So, after the Virgin Regular Saver matures in 12 months, you should check on a forum such as this to see what account offers the best interest rate for your accrued money. 

Hope this answers your question. 

Beddie

If you're going to spend it soon, the interest earned will be negligible. Just do what's easiest for you.

PaulDesmond

Thanks for all your help. I will start it now. would take 8 monthe to reach £3,000. BUT if banks love you to invest loads of money into them, why would Virgin cap it at £3,000. Surley they would want as much out of you as they could get?

Digital_Payback

PaulDesmond said:

Thanks for all your help. I will start it now. would take 8 monthe to reach £3,000. BUT if banks love you to invest loads of money into them, why would Virgin cap it at £3,000. Surley they would want as much out of you as they could get?

Virgin offers a good interest rate on the Regular Saver which earns £162.50 interest in 12 months on the money paid in monthly. That the best rate available today. 

They don’t want to offer and pay out 10% interest on much larger sums. You’d only get nearer to 5% or less these days from a high street bank, and going down.