HSBC Loyalty ISA rate error on recently upgraded HSBC Advance

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
16 replies 3.1K views
SimonM_2SimonM_2 Forumite
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edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Has anyone else recently been upgraded automatically by HSBC to an Advance account, and then taken out their Loyalty ISA with the higher interest rate (1.50% for 'Advanced' instead of 1.40% for their 'Bank Account' holders) and the Save Together offer that is available to Advanced account holders?

If so you may want to check the rate is correct on the statement that was sent a few days after the account was opened. Mine showed 1.40% and I reported this to them by phone the same day, and was told that it's a known error with the online banking when applying for the account and it would be solved and interest backdated so I don't loose out.

Now HSBC are claiming I didn't have an Advance account on that date (I did, it's the date they said it'd be Advance from and have print-outs of all the pages from the application and subsequent transfers which prove that the account type was 'Advance') and that's why it failed to pick it up as the account only changed the next day (which isn't the case at all), yet it didn't automatically change the next day to Advance ISA so I don't believe this at all.

What's more the Save Together bonus which I paid in the lump sum to qualify for the full 12 months of additional interest hasn't triggered any info pack being sent out to me, which again makes me think it hasn't correctly recognised it's an Advance account.

To make matters even more annoying, my Loyalty ISA that I've almost maxed out (leaving a small amount to top up towards the end of the tax year to make the most of the 12 month loyalty rate from that payment date) has earned interest at the lower (wrong) rate since account opening and now they want to just pay it in to my HSBC Advance current account instead of the ISA - meaning I don't get the benefit of the tax free interest on it either now or for every day that it would earn interest for however long I keep it in there (potentially many years over multiple ISA subscriptions).

I presume I'm in the right to expect the missing interest to be paid in to my ISA as it should have been, and HSBC can't attempt to do otherwise? It sounded like it'd be effort to do so (simpler just to chuck some money in my current account) but as far as I'm concerned the bank have made the error (as confirmed to me on the phone when first reporting it and the service fault was raised by the person at HSBC) and they should solve it, no matter how much effort someone might have to put in to their systems to correct it. Been messed around enough with banks before to not just roll over and accept something that isn't right.


Any ISA experts able to give their thoughts on this? And anyone else been affected by the same incorrect ISA rate? (apparently if the ISA account name shows "bank" instead of "advance" you have the wrong one)

Thanks

Simon
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Replies

  • edited 24 April 2015 at 6:48PM
    colstencolsten Forumite
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    edited 24 April 2015 at 6:48PM
    you most certainly have the right to get all the interest due on your ISA paid into your ISA account. The whole point about ISAs is that their interest is tax free forever, so to suggest that interest should be paid into an account that is liable to tax is absurd. You were probably talking to a clueless CS person - all banks do have them unfortunately.

    If they insist they don't want to do it, ask them to raise a complaint, and if they haven't responded to your complaint to your satisfaction after 8 weeks, take them to the FOS.
  • edited 25 April 2015 at 8:10AM
    masonicmasonic Forumite
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    edited 25 April 2015 at 8:10AM
    SimonM wrote: »
    Has anyone else recently been upgraded automatically by HSBC to an Advance account, and then taken out their Loyalty ISA with the higher interest rate (1.50% for 'Advanced' instead of 1.40% for their 'Bank Account' holders) and the Save Together offer that is available to Advanced account holders?

    If so you may want to check the rate is correct on the statement that was sent a few days after the account was opened. Mine showed 1.40% and I reported this to them by phone the same day, and was told that it's a known error with the online banking when applying for the account and it would be solved and interest backdated so I don't loose out.
    I've just checked my opening statement and my interest rate is shown as 1.40%. I am a new HSBC customer and opened an Advance account directly in order to get the ISA (funding it directly from my newly opened Advance account), so there is no question I qualified for the Advance rate on day 1.

    Edit: and my account is showing as 'LOY ISA BANK', suggesting I am in the same boat as the OP. :mad:

    I have already had £50 compensation from these clowns over account opening blunders, have recently received not one but two debit cards in my name, and now this...

    Update: HSBC customer services confirmed the wrong account was opened for me in error and have raised a complaint on my behalf to resolve the issue.
  • Archi_BaldArchi_Bald Forumite
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    I opened my HSBC ISA online on April 6th and it shows correctly as LOY ISA ADV. I can't see the interest rate but assume it is 1.5% alright. My Advance account is a few months old. So they can do it correctly.
  • masonicmasonic Forumite
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    I suspect it takes them a few days for their systems to update with the details of the newly opened/converted account, that is, a few days after the account is available online. I also applied for a regular saver on the same day I applied for the ISA and the regular saver application failed. Three days later I applied again and the account opened fine.
  • LokoloLokolo Forumite
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    masonic wrote: »
    I suspect it takes them a few days for their systems to update with the details of the newly opened/converted account, that is, a few days after the account is available online. I also applied for a regular saver on the same day I applied for the ISA and the regular saver application failed. Three days later I applied again and the account opened fine.

    Yes. Mine opened at 1.4% and as soon as my bank account had been upgraded (24 hours later), the interest rate then went to 1.5%.
  • Archi_BaldArchi_Bald Forumite
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    Where can I see the interest rate in online banking?
  • badger09badger09 Forumite
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    Archi_Bald wrote: »
    I opened my HSBC ISA online on April 6th and it shows correctly as LOY ISA ADV. I can't see the interest rate but assume it is 1.5% alright. My Advance account is a few months old. So they can do it correctly.

    Similar experience. Advance current account opened (eventually:() 30 January; Loyalty ISA opened and funded with lump sum 9 March. Correct description when ISA first appeared in online banking.
    Archi_Bald wrote: »
    Where can I see the interest rate in online banking?

    I can't see interest in online banking Archi, but it was shown on the opening and subsequent paper statements.

    I've also had the letter confirming I'm eligible for the Save Together offer, but the £10 hasn't arrived yet.
  • SuiDreamsSuiDreams Forumite
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    Archi_Bald wrote: »
    Where can I see the interest rate in online banking?

    I had to go into statements on the account and the rate shows there.
  • Archi_BaldArchi_Bald Forumite
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    SuiDreams wrote: »
    I had to go into statements on the account and the rate shows there.

    Indeed, it's on the statement. Never occurred to me to look there, thanks!

    I also realised the default delivery option for statements is paper so I changed that now to online.
  • SuiDreamsSuiDreams Forumite
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    Archi_Bald wrote: »
    Indeed, it's on the statement. Never occurred to me to look there, thanks!

    I also realised the default delivery option for statements is paper so I changed that now to online.

    Took me a while to find it. Most banks give you the interest rate on the account page but not HSBC it seems
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