HSBC FR ISA Cashback

friolento

https://forums.moneysavingexpert.com/discussion/comment/82067080#Comment_82067080

Interest, whether from old or new ISA provider, does not count towards the annual £20k limit. Nor does the transferred amount.

Who told you that HSBC will not pay the interest into the ISA account? Nothing would surprise me any longer with HSBC, but even they would surely not do that?


EDIT: you are sort of correct, the interest does not get added to the FRISA - - mainly because once it's matured, it becomes a Loyalty Cash ISA, and interest is only paid at maturity. The interest for the FRISA therefore gets also paid into the Loyalty Cash ISA. How quickly or slowly this will happen is anyone's guess. It should all happen on the maturity day, or at least the calendar day after maturity.

It should be interesting to see how they handle transfers out which are requested to occur upon maturity. We could well find ourselves in another kafkaesque battle with HSBC over the transfers out. Which no doubt just about everybody will request once we have paid our penance ………………..

ccluedo

From their email to me:

"We will backdate interest owed to the date your funds credited HSBC. Please note this backdated interest will be credited into one of our internal accounts, not directly into your FRISA."

My understanding was based on a combination of the above, and as mentioned, from other people who have had backdated interest paid into their HSBC current account already.

Equally, I can see that email quote could well be a ref to content of your edit..but it doesn't explain those who have already received it. Time will tell I guess.

Rich2808

Surely any interest on transferred ISA funds should be paid into the ISA account transferred into - it might not be a huge sum but you can then earn interest on that interest tax free.

Have people really had this interest paid into their current accounts i.e. interest for period between when their funds arrived in the HSBC holding account and when they appeared in their ISA accounts which for some on here is a month or even two months interest which could be hundreds of pounds. Surely can't be so?

It is bad enough this shocking ISA transfer saga continues - without this on top?

Money_Stitch

Very briefly, similar saga from April to July. Formal complaint, held off FOS as still considering (you get 6 months to raise with FOS after final position from the bank is made).

Transfer finally complete. 150 compensation paid into current account. A second payment into current account representing the missed interest from day 16 of the transfer process to the day of completion of the transferred amount. This came from the complaints team, not CS.

Gone back to the complaint handler because I'm unsure if I should accept the interest payment into current account which takes it out of the ISA tax free wrapper, and will impact my savings tax PA for the year. It depends how they report it to HRMC. If 'compensation' not taxable, if they report as interest, then taxable. The deposits both say compensation. I also want written confirmation the cashback is marked on the account and will be received without chasing.

Still awaiting a reply. My concern over the interest backdate is that if I don't accept it now, it will be forgotten in month 13.

The worst experience I've ever had with an ISA having navigated virgin, trading 212 and building socities.