Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 21st Feb 14, 4:27 PM
    • 2,324Posts
    • 971Thanks
    Former MSE Helen
    MSE News: HSBC launches 1.6% 'loyalty' Isa but it's no market-beater
    • #1
    • 21st Feb 14, 4:27 PM
    MSE News: HSBC launches 1.6% 'loyalty' Isa but it's no market-beater 21st Feb 14 at 4:27 PM
    "If you're an HSBC current account holder, you can get up to 1.6% AER interest on your savings with the bank's new Isa..."

    Read the full story:

    HSBC launches 1.6% 'loyalty' Isa but it's no market-beater



    Click reply below to discuss. If you havent already, join the forum to reply. If you arent sure how it all works, read our New to Forum? Intro Guide.

Page 1
    • Oblivion
    • By Oblivion 22nd Feb 14, 11:16 AM
    • 19,247 Posts
    • 58,472 Thanks
    Oblivion
    • #2
    • 22nd Feb 14, 11:16 AM
    • #2
    • 22nd Feb 14, 11:16 AM
    I have been an HSBC Premier customer for decades and have stayed loyal because they have always been helpful and incredibly accurate ... never had an incorrect statement yet. Online banking is superb. Two credit card scams sorted out immediately with no fuss.

    That said, I once had a S&S ISA with them that over 5 years earned next to nothing. I also had a cash ISA with them and in no time at all they'd dropped the interest rate to an insulting 0.25%. Needless to say, that's been transferred out. I have no doubt that once they get enough people on the hook for this one they'll drop the rate to similar levels.

    Quite frankly I'll be putting in next years allocation with NS&I again, as I have done for the past few years. Their rate may have dropped to 1.5% but the 0.1% difference with HSBC is neither here nor there, and I find NS&I a lot more open and ethical than any of the banks.
    ... Dave
    Happily retired and enjoying my 13th year of leisure

    I am cleverly disguised as a responsible adult.

    Bring me sunshine in your smile
  • stup52
    • #3
    • 22nd Feb 14, 12:06 PM
    HSBC application form intrusive questioning
    • #3
    • 22nd Feb 14, 12:06 PM
    I was looking to open and transfer old ISA(s) to a Loyalty Cash ISA with HSBC as the rate was ok, however without a current account it's not possible.

    So, started to fill in the form until I got to the totally intrusive questions regarding income/outgoings/income sources to the point where I decided to abort the application.

    I understand the need to verify identification and address but the rest???

    So what exactly is the FCA requirement the bank needs to enforce, and how much personal information do you need to give?
    • planteria
    • By planteria 22nd Feb 14, 12:11 PM
    • 5,100 Posts
    • 1,143 Thanks
    planteria
    • #4
    • 22nd Feb 14, 12:11 PM
    • #4
    • 22nd Feb 14, 12:11 PM
    I have been an HSBC Premier customer for decades and have stayed loyal because they have always been helpful and incredibly accurate ... never had an incorrect statement yet. Online banking is superb. Two credit card scams sorted out immediately with no fuss.

    That said, I once had a S&S ISA with them that over 5 years earned next to nothing. I also had a cash ISA with them and in no time at all they'd dropped the interest rate to an insulting 0.25%. Needless to say, that's been transferred out. I have no doubt that once they get enough people on the hook for this one they'll drop the rate to similar levels.

    Quite frankly I'll be putting in next years allocation with NS&I again, as I have done for the past few years. Their rate may have dropped to 1.5% but the 0.1% difference with HSBC is neither here nor there, and I find NS&I a lot more open and ethical than any of the banks.
    Originally posted by Oblivion
    all fair, and keeping your ISA together in one place must be worth something. i don't use my ISA allowance for Cash, though.
    • gt94sss2
    • By gt94sss2 22nd Feb 14, 5:41 PM
    • 4,240 Posts
    • 2,009 Thanks
    gt94sss2
    • #5
    • 22nd Feb 14, 5:41 PM
    • #5
    • 22nd Feb 14, 5:41 PM
    That said, I once had a S&S ISA with them that over 5 years earned next to nothing. I also had a cash ISA with them and in no time at all they'd dropped the interest rate to an insulting 0.25%. Needless to say, that's been transferred out. I have no doubt that once they get enough people on the hook for this one they'll drop the rate to similar levels.
    Originally posted by Oblivion
    I have a HSBC Premier account as well and as you say it operates very smoothly. You can't necessarily hold them responsible for a S&S ISA - it obviously depends what it was invested in and when,,

    Their new ISA loyalty concept is interesting - and is now the only ISA they offer. I think this will be a 'permanent' change, not temporary. The regulators seem to have decided that accounts which pay 'bonuses' are not good for customers who they think are 'obviously' unable to shop around and change their accounts at the end of the bonus period.

    I think HSBC are just getting in first before all the banks are forced to change..

    As for me, I could get a higher rate from First Direct but am thinking with interest rates the way they are, there may not be much point in having an Cash ISA.

    However, it seems a good choice for those not willing to shop around and who prefer to keep everything with the same bank.

    Regards
    Sunil
    • gt94sss2
    • By gt94sss2 22nd Feb 14, 5:47 PM
    • 4,240 Posts
    • 2,009 Thanks
    gt94sss2
    • #6
    • 22nd Feb 14, 5:47 PM
    • #6
    • 22nd Feb 14, 5:47 PM
    So, started to fill in the form until I got to the totally intrusive questions regarding income/outgoings/income sources to the point where I decided to abort the application.

    I understand the need to verify identification and address but the rest???
    Originally posted by stup52
    Given they have recently been fined $1.9bn for not doing enough to prevent money laundering, you could expect them to be a bit over zealous.

    Though I have been asked similar questions to those you describe from several other banks as well..

    Regards
    Sunil
  • innovate
    • #7
    • 22nd Feb 14, 7:07 PM
    • #7
    • 22nd Feb 14, 7:07 PM
    Their Marketing folks are using the ML fine as a superb excuse to try and extract tons of information from harmless savers who just want to get a bit of interest on a few thousand pounds.
    • Pincher
    • By Pincher 23rd Feb 14, 2:11 AM
    • 6,516 Posts
    • 2,491 Thanks
    Pincher
    • #8
    • 23rd Feb 14, 2:11 AM
    • #8
    • 23rd Feb 14, 2:11 AM
    The way to get the best out of HSBC is to be with First Direct.
    Their ISA is paying 1.70% for 10k+, 1.85% for 20k+, then 2.00% for 40k+.

    If you did have a 50k shares ISA with them in 2007, what would have happened in 2008? Sorry sir, but you have to add 15,000 to one of your accounts to stay eligible for Premier status at 50k.

    With First Direct, you get free banking for 1,000 a month transfer in. And you get better mortgage offers, as well as more interest on your ISA.

    You do save on telegraphic transfer fees if you have multiple Premier accounts in different countries, though.
  • innovate
    • #9
    • 23rd Feb 14, 6:43 AM
    • #9
    • 23rd Feb 14, 6:43 AM

    With First Direct, you get free banking for 1,000 a month transfer in. And you get better mortgage offers, as well as more interest on your ISA.

    .
    Originally posted by Pincher
    You don't need to pay in 1K a month to get free banking. Just keep 1 in their esaver and the current account is free.
    • zerog
    • By zerog 23rd Feb 14, 8:04 AM
    • 2,416 Posts
    • 849 Thanks
    zerog
    So, started to fill in the form until I got to the totally intrusive questions regarding income/outgoings/income sources to the point where I decided to abort the application.
    Originally posted by stup52
    It's reasonable for a bank to want to know about your personal finances. It's also reasonable that you might not want to give them all this information.

    So it seems like you have made the right choice in aborting the application.

    HSBC Premier is very good but has the opportunity cost of keeping 50k with them at low interest rates. Yet 50k is one of the lower requirements around the world.
    • ANGLICANPAT
    • By ANGLICANPAT 23rd Feb 14, 4:30 PM
    • 1,177 Posts
    • 396 Thanks
    ANGLICANPAT
    If you think thats intrusive , you should have heard Barclays when I went in for an appointment to sort out/freeze my mothers current and ISA accounts with them about two weeks after she died . After they had ascertained I was her executor/beneficiary , they said I needed to speak by phone to another dept in Barclays which was especially for explaining about post death accounts. I was asked ordinary questions for two minutes, all standard stuff, then it suddenly crept into questions about what other investments did my mother have elsewhere, and what opportunities there were for her money ---with THEM. Needless to say as soon as I realized the irrelevance of the questions to my immediate needs, I terminated the appointment without answering them and made it clear I wasnt impressed.
    • Pincher
    • By Pincher 24th Feb 14, 1:54 AM
    • 6,516 Posts
    • 2,491 Thanks
    Pincher
    High ISA interest rate is not the only reason for keeping your money with an institution, case in point: IceSave.
    During the credit crunch, HSBC didn't need a bail-out, which was a bloody good reason to have your money with them at that time.

    On the point of intrusive questioning, the financial adviser has to do a fact find before they can sell you a financial product, otherwise it is a mis-sell. The report always ends with "based on your circumstances, we recommend that you sign up for our super duper endowment policy", or whatever they want to sell you any way. It's been going on for at least 20 years. But I only popped in to use the loo, you say.

    A relative used to say, the coffee in ABN Amro is US$10,000 a cup.
    The coffee is free, but the duds they sold you lose you a bundle.
    Stay out of these Premier offices. They are dangerous to your wealth.
  • innovate
    As long as your ISA provider is covered by the 85K FSCS protection and you don't come near that limit (with all your deposits), there is no reason at all to settle for mediocre interest rates. I know of no cash ISA provider that is not part of the FSCS scheme.

    There is absolutely no reason whatsoever for an ISA provider to ask intrusive questions about your income and outgoings when you apply for a savings account (which is all an ISA is). There is no financial advice involved in filling in HSBC's online application for an ISA.
    Last edited by innovate; 24-02-2014 at 7:57 AM.
    • Pincher
    • By Pincher 24th Feb 14, 10:47 AM
    • 6,516 Posts
    • 2,491 Thanks
    Pincher
    People seem to think they are covered because they have insurance, until they come to claim. If you were expecting to pay for something like a mortgage deposit next month, it's plenty of time to get your money out of the FSCS scheme, is it? Also, I think the maximum went down to something like 35k around 2005ish. They pushed it back up to stop people mobbing the banks because of the credit crunch.

    I'm not saying they they are justified in doing a fact find, I'm saying they will do one for any excuse. It's like those clip joints where they entice you in to a bar, put a lemon soaked napkin in front of you, and charge you 100 for it.
    • borderline
    • By borderline 3rd Apr 14, 12:55 PM
    • 197 Posts
    • 27 Thanks
    borderline
    I have an e-Isa with HSBC .. not much money though, under 7000
    is it worth it for me to switch to this new Loyalty Isa?
    • GreenBitterfly
    • By GreenBitterfly 3rd Apr 14, 4:05 PM
    • 370 Posts
    • 740 Thanks
    GreenBitterfly
    I have an e-Isa with HSBC .. not much money though, under 7000
    is it worth it for me to switch to this new Loyalty Isa?
    Originally posted by borderline
    I'd say yes, as it's only a internal transfer form you'd have to complete.
    • TrustyOven
    • By TrustyOven 3rd Apr 14, 4:45 PM
    • 724 Posts
    • 749 Thanks
    TrustyOven
    I have an e-Isa with HSBC .. not much money though, under 7000
    is it worth it for me to switch to this new Loyalty Isa?
    Originally posted by borderline
    Isnt this "transfer" done automaticaly?

    I opened a HSBC e-ISA in January this year. I had 1.6% AER as per their old ISA product. Then came March or whenever, and I got 1.4% interest, it got automatically transferred. It's still the same account number and sort code. Everything looks the same. Just the interest is 1.4% AER and I need to make sure I deposit some money at least once a year to keep that 1.4% loyality.

    Can anyone else confirm please?
    Goals
    Save 12k in 2017 #016 (4212.06 / 10k) (42.12%)
    Save 12k in 2016 #041 (4558.28 / 6k) (75.97%)
    Save 12k in 2014 #192 (4115.62 / 5k) (82.3%)
    • borderline
    • By borderline 3rd Apr 14, 8:09 PM
    • 197 Posts
    • 27 Thanks
    borderline
    Isnt this "transfer" done automaticaly?

    I opened a HSBC e-ISA in January this year. I had 1.6% AER as per their old ISA product. Then came March or whenever, and I got 1.4% interest, it got automatically transferred. It's still the same account number and sort code. Everything looks the same. Just the interest is 1.4% AER and I need to make sure I deposit some money at least once a year to keep that 1.4% loyality.

    Can anyone else confirm please?
    Originally posted by TrustyOven
    No, I havent been transferred . There is a link on my account if I want to transfer, then there is a form to fill out.

    the thing is, i have no idea what interest rate Im in right now. Every month I get from 8-10 in interest
    • TrustyOven
    • By TrustyOven 3rd Apr 14, 8:40 PM
    • 724 Posts
    • 749 Thanks
    TrustyOven
    No, I havent been transferred . There is a link on my account if I want to transfer, then there is a form to fill out.

    the thing is, i have no idea what interest rate Im in right now. Every month I get from 8-10 in interest
    Originally posted by borderline
    I didnt have to fill in any forms. At all. I didnt press any links either. It just magically happened.

    http://www.thecalculatorsite.com/finance/calculators/savings-calculators.php

    Change it to pounds, stick in how much you have in your ISA amount, put it at 1.4 APR (bit less for 1.4 AER, but doesnt matter for this), calculate for 2 months, interest calculated monthly. Press the Calculate button and it should tell you the Month Interest.

    See if that corresponds to your 8 to 10 monthly interest.

    eg. 7000 @ 1.4% APR is 8.17 for the first month.
    7000 @ 1.6% APR is 9.33 for the first month.
    Goals
    Save 12k in 2017 #016 (4212.06 / 10k) (42.12%)
    Save 12k in 2016 #041 (4558.28 / 6k) (75.97%)
    Save 12k in 2014 #192 (4115.62 / 5k) (82.3%)
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,960Posts Today

6,663Users online

Martin's Twitter