HSBC New money v Old money

auser99

An old relative opened an HSBC ISA up using new 25/26 money last week, not realising they had their 24/25 HSBC ISA maturing a few days on - which has now matured into a lowly 2% ish rate easy account money.

I said maybe go back and get them to find a way to combine the 2 into one as it'll be in the cooling off period.

However, HSBC are saying they can't do this and they can't move the easy access account now the 25/26 ISA has been set up. 

I can only imagine this is something to do with some high banks refusing to allow users more than 1 cash ISA a year despite the government rule changes.

I can't see any reason why you can't set a new ISA up and combine new money PLUS the old maturing account that has become easy access. But the feedback I'm hearing back seems to be the bank saying you "can't" move easy access into the higher rate. Which sounds utterly wrong.


If they really refuse I'll probably advise them to cancel the ISA, move the easy access into a new ISA (assuming they're not actually seriously saying you can't move an easy access into a fixed rate higher rate account), then move the new money elsewhere bank wise.

surreysaver

Is the new one a fixed rate, and therefore cannot transfer the other in as you've missed the cut-off for transfers?
If not, sounds like they're being fobbed off.
Just open an ISA somewhere else and transfer it

auser99

surreysaver said:

Is the new one a fixed rate, and therefore cannot transfer the other in as you've missed the cut-off for transfers?
If not, sounds like they're being fobbed off.
Just open an ISA somewhere else and transfer it

The new one IS a fixed rate, but it has a 30 day transfer in window.
So I can't see any reason at all they won't add in the easy access money. There's certainly nothing listed about how this 4.1% rate applies to only new money or anything like that.

mebu60

Is the new 25/26 a fixed rate or easy access cash ISA and does it accept transfers-in? 

If it does accept transfers-in then should be no issue to request HSBC do that if it is EA or still within the funding window for a fixed rate. Could be worth asking again being sure to be clear about what is being requested, i.e. the transfer-in to the new ISA of the 24/25 matured ISA now an EA. 

eskbanker

https://www.hsbc.co.uk/savings/products/fixed-rate-isa/ allows both deposits and transfers within the first 30 days, so there's no reason that the maturing product can't be transferred into the new one - read the product terms carefully and then challenge HSBC staff to do the same....

auser99

Thanks all - never ideal when getting a "version" relayed back to me, having not been there myself.

But I'll get those terms printed up, and maybe go in with them myself and check they're not misunderstanding what is being asked.

auser99

Went in today to get the bottom of this one.

As expected - no issue with the concept of moving matured old money "easy access" ISA money into the still within 30 days new money Fixed ISA....

But it seems the Original "1 year" fixed ISA was actually a 13 monther, so doesn't expire for a month!

Why that wasn't said at the time as the reason I don't know, would have saved a bit of time

alfista

HSBC handling of cash ISAs is a total mess.  
I had a one year fixed rate which matured and coverted into a lower rate "loyalty" account (why ????).  I then tried to open a new fixed rate - online process seemed to work, but then I got an SMS saying there was a problem.  Talked to call centre (India, groan), totally useless , they couldn't explain what problem was, advised "re-apply".  Re-applied, managed to get new fixed rate opened (despite further SMS "problem"), but HSBC haven't transferred "loyalty" funds to "fixed" account as requested. 
Total mess !!!

dunstonh

I had a one yea fixed rate which matured and coverted into a lower rate "loyalty" account (why ????).  

Fixed rate accounts have to have a destination. They cannot stay where they are past maturity.

The rest is a mess as you say.

alfista

dunstonh said:

I had a one yea fixed rate which matured and coverted into a lower rate "loyalty" account (why ????).  

Fixed rate accounts have to have a destination. They cannot stay where they are past maturity.

The rest is a mess as you say.

Fair comment.  However , the options at maturity should be :
Give me the money back, or

Put the funds in a (higher rate) fixed rate ISA, or
Put the funds in a (lower rate) flexible ISA, or
etc etc

Very poor service by HSBC.

wmb194

alfista said:

HSBC handling of cash ISAs is a total mess.  
I had a one yea fixed rate which matured and coverted into a lower rate "loyalty" account (why ????).  I then tried to open a new fixed rate - online process seemed to work, but then I got an SMS saying there was a problem.  Talked to call centre (India, groan), totally useless , they couldn't explain what problem was, advised "re-apply".  Re-applied, managed to get new fixed rate opened (despite further SMS "problem"), but HSBC haven't transferred "loyalty" funds to "fixed" account as requested. 
Total mess !!!

When did you instruct the transfer? In my experience HSBC can take a day to to execute instructions.

Why did it convert into an instant access Isa? That's what HSBC does, "At the end of the fixed term we’ll convert your Fixed Rate Cash ISA into a Loyalty Cash ISA."

https://www.hsbc.co.uk/savings/products/fixed-rate-isa/