Savings Acc after switching

pdyson21

I have a current account and a FlexiSaver account with HSBC.  If I switch my current account to First Direct, will HSBC keep my FlexiSaver account open until FD has been set-up and running and then I can open an ISA with FD?

PRAISETHESUN

The clue is in the name - Current Account Switch Service. When you initiate a CASS switch, only the selected current account is affected. All other products you hold with that bank - savings, credit cards, even other current accounts, remain unaffected.

Separately however is the issue of how to manage the savings account if you close your current account. Some banks require you to keep a current account in order to hold the savings account, so they could close it if you switch away. From my past experience with HSBC, you are only able to transfer from your savings account to a HSBC current account, which will cause problems as you will be no longer able to withdraw from your savings after you close your current account.

Rich1976

HSBC and FD offer pretty much exactly the same savings accounts with the same interest rates so if you liked the Flexible Saver you could open the FD equivalent once the current account is open. I can’t remember if they ask, as part of the application whether you want to open a savings account.

However bear in mind the rate is 1.5% so could do better elsewhere and even the FD ISA only pays 2.70%.