Potential pitfalls with HSBC Online Saver

bunsco

Hi all

I have a tad over £2500 to stick into and online account and was about to stick it into a HSBC Online Saver account.

But before i do so, i want to know if there are any potential pitfalls/problems with the HSBC Online Saver compared to other online accounts out there. What sould i be wary of (if any)

Ultimatly - good, bad or so-so account.

ManAtHome

Minor snag is that you don't get any interest for any month in which you make a withdrawal. If you have other HSBC accounts and can forecast when you need the cash it's a possible (transfer everything apart from £1 on the 1st of the month). Have a look at ING - slightly better rate and no penalties on withdrawal.

kmhtkmhtkmht

I was just using one of their accounts and yeah it is !!!!!! that they give you NO interest on any month you make a withdrawals.

Walletwatch

yeah, and they call themselves an "instant access" account!!! Instant access, yes, but with loads of penalties behind, should you exercise the option to access your money on an instant basis!

ED

HSBC continue to ignore suggestions thoughtfully posted to them suggesting their Online Saver is uncompetitive, unfair and confusing with its T+C that precludes any interest being earned on the full balance during any month when a withdrawal is made.

Daily Telegraph newspaper mentioned on 2nd September an HSBC Online Saver customer who complained when a couple of withdrawals totalling £76 from a large balance (house-buying fund) resulted in over £3,000 being lost via nil-interest for a 2-month period. When Telegraph investigator Jessica Gorst-Williams consulted HSBC, they relented, paying £2,239 to the customer, this being what would have been earned had the customer used an HSBC Flexible Saver instead of Online Saver.

Methinks it's time HSBC dropped the nil-interest T+C from Online Saver. Currently this pays 4.75% which does not compare well with building society online accounts offering instant access, such as Coventry BS 'Coventry First' @ 5.35% AER and Yorkshire BS 'Internet Saver' @ 5.10%.

Anyone here care to share HSBC's written response to similar suggestions?