HSBC e-ISA - only with HSBC current account!

rdp1980

Having seen the HSBC e-ISA at 6.25% I thought that looked like a good deal, so decided to apply. I found I had to register for online banking to do this, or it gave me a telephone number to call.

As I have a (fairly new) credit card with HSBC I figured I would sign up to online banking, something I would have got round to doing in order to maintain my credit card online anyway, so this just spurred me into doing it sooner rather than later. So I went through the process of getting security numbers etc and now have online access.

I found the 'apply now' page for the e-ISA and stalled at the first hurdle. On the first application screen:

You only need £1 to open your account but you can invest up to £3600 in any tax year.You can transfer a lump sum or set up regular payments (minimum £10) into your ISA from another of your HSBC Bank accounts below.

These fields have no asterisk to indicate they are required fields, only the bottom option to add interest to the ISA (Yes/No) is marked as a required field.

As the sort code was prefixed by 40- (and cannot be changed) I figured these options applied to funding from an HSBC bank account only (which I don't have) so tried to proceed, only to be told to input the deposit amount and bank account details. As the sort code cannot be changed I obviously could not set this up!

I phoned the number on the application screen, to be told I needed to speak to the Internet department as they don't deal with e-ISA applications. Why put the phone number there then? Anyway I speak to a lady on this other number, she asked if I could just enter the details of my own (non-HSBC) bank account. When I explained the 40- prefix could not be changed, she said she would consult a colleague to see if they were aware of the issue. She then comes back and tells me that her colleague informs her that you can only open an e-ISA if you have an HSBC current account.

I told her this wasn't clear from the web site, and she even admitted her own system didn't tell her that this was the case.

So unless I have been grossly misinformed, if anyone is in similar circumstances and can't be bothered opening an HSBC current account just to get the e-ISA, my message would be:

DON'T BOTHER!

Grrr.... :mad:

Of course, if I am being really thick and have missed something obvious, I would love somebody to point me in the right direction. :wall:

Aegis

It's not hugely easy to find, but on the "More Info" screen:

New to HSBC Bank?

You'll need to have an HSBC Current Account to open our Cash e-ISA. If you're not already a customer, you can open an HSBC Current Account online now.

Poolman99

I had exactly the same problem. I have also just joined HSBC after taking their 0% credit card - which means I have the HSBC internet banking all activated. I am also in the process of switching my mortgage to them.

After reading the MSE article I decided to go for the ISA too but it looks like they want you to get a current account too.

I am really pleased with my Nationwide Flexaccount and don't want to have to apply for another current account (HSBC did two credit checks for me to get the other two products and I don't want a third in quick succession) just to use as a conduit for this ISA.

Ah well, I'll wait for something easier to come along.

rdp1980

Poolman99, at least I know it is not just me!

After mumbling to myself for a bit and considering the Barclays ISA everyone seems to be raving about, then reading about their delays to new customers and it being necessary to arrange a 'financial review' (no thanks), I had another look round and decided I would give in and go through the motions of opening the HSBC current account. I did this online, and even though I was already signed into online banking, the only option for a sole account is to state you are a new customer. I then had to answer exactly the same questions I did when I applied for the credit card.

The only option mentioning existing customers was for a joint application where one of you is an existing customer and the other a new customer.

Having filled in the forms I was told my application was received and I will receive information in the post. Perhaps it is different for a current account but when I applied for the credit card it told me I had been accepted right away and told me what my credit limit would be. Hope it's not a bad sign!

I don't intend using the HSBC current account on a day-to-day basis, but might be handy to have open and dormant just in case it should ever become useful one day. Plus part of me feels a little smug that they will have to set up my account, send me a cheque book etc, when I have no intention of using the account. If they hadn't been so awkward about the e-ISA needing a current account I could have saved them the hassle and expense! :rolleyes:

That is, assuming they accept me of course, but as they took me for the credit card on the same information, I don't see why they shouldn't.

Also, I wonder if there would be any affect on the e-ISA if after the account was set up I then closed the current account? Not that I intend doing that but I am curious...