Am I Missing Some Thing … 6.25 %,

[ThaiLife]

I’ve just seen this while looking at my HSBC online Bank Statement

And it seem’s very competitive and easy to run the account

Online saver Account ….

http://www.hsbc.co.uk/1/2/

Am I missing some thing … 6.25 %, What do you think ..?

Thanks TL

[Bobegraves]

I've had this account for months - a nice earner - and very easy to use.

[nemo38]

I've had this account for months - a nice earner - and very easy to use.

Excellent rate. I'm just now contacting them about it.

[cmsally]

I'm not sure about the uk version, but with the offshore, if you take any money out of the acct you lose interest for the total amount (in that acct) for that month. So not a good acct to use if you need to make withdrawals.

[sonicdragon]

No you are not missing anything. Similar and better rates are available from a host of FIs. You can get 6.40% with alliance & leicester (offshore) e-saver

[JAS21]

I’ve just seen this while looking at my HSBC online Bank Statement

And it seem’s very competitive and easy to run the account

Online saver Account ….

http://www.hsbc.co.uk/1/2/

Am I missing some thing … 6.25 %, What do you think ..?

Thanks TL

A&L International Isle of Mann, internet account 6.4%..I have two..easy to open..I did them from Thailand. Just google it for full details. Tax free of course provided you tell the tax man that you live here.

[lannarebirth]

Are you taking into cosideration currency risk? If you would never consider another currency than the GBP, then that wouldn't matter of course.

[ThaiLife]

I think a difference is ....alliance & leicester (offshore) e-saver the interest is paid .... annually on 31 March. and the HSBC interest is paid Monthly

TL

[sonicdragon]

I think a difference is ....alliance & leicester (offshore) e-saver the interest is paid .... annually on 31 March. and the HSBC interest is paid Monthly

TL

Maybe, but I doubt it. I don't have the inclination to check, but so long as the rates are AER it shouldn't matter. I would expect the gross rate of the HSBC account to be closer to 6% if it pays monthly interest and the AER is 6.25%

Edited August 15, 2007 by sonicdragon

[sonicdragon]

Are you taking into cosideration currency risk? If you would never consider another currency than the GBP, then that wouldn't matter of course.

I believe we are all talking about GBP. I am anyway.

[sonicdragon]

I think a difference is ....alliance & leicester (offshore) e-saver the interest is paid .... annually on 31 March. and the HSBC interest is paid Monthly

TL

Maybe, but I doubt it. I don't have the inclination to check, but so long as the rates are AER it shouldn't matter. I would expect the gross rate of the HSBC account to be closer to 6% if it pays monthly interest and the AER is 6.25%

So, I checked, and, as I thought, the gross rate of the HSBC account is 6.08% (6.25 AER) whereas the A&L is 6.4% gross (6.4% AER)

[ThaiLife]

Online Saver

If you're looking for a high interest account that you manage online then Online Saver, could be right for you. Right now, you will get our special offer rate of 6.25% AER (6.08% gross) variable on savings from £1 up to a total maximum of £50,000. Don't forget to read our Online Saver Offer Terms and our Online Saver Terms and Conditions before you apply. Apply online for an Online Saver at our special rate today.

Key features

* Variable rate of 6.25% AER, 6.08% gross, paid monthly. (Only payable on new to HSBC deposits up to a total maximum amount of £50,000).

* No interest is payable on the full balance in any calendar month in which a withdrawal is made.

* Open your online savings account with just £1. Maximum account balance of £50,000.( the pdf document shows £ 2,000.000 ..? )

* Manage your account online.

* Withdrawal of funds via Internet Banking by transfer to another HSBC account or to an account held elsewhere. Please note, transfers to accounts held elsewhere may take longer (a daily maximum transfer limit applies).

* View your statements online; you will not receive paper statements.

What you should know before you apply

* Online Saver is designed for long term savings. If you think you will need regular access to your money, then why not check out our full range of savings accounts to find the right savings product for you.

* Please read the Online Saver Offer Terms (PDF, 20kb)*, Online Saver terms and conditions (PDF, 50kb) and the Savings Accounts Key Features (PDF, 113kb) before applying online.

* Please read The Banking Code flyer.

* Please read our interest rates.

* Please note you can only have one Online Saver. If you already have an Online Saver you cannot open another one.

AER: Annual Equivalent Rate: This is a notional rate which illustrates what the gross rate would be if interest were paid and compounded each year. Gross: The rate before the deduction of tax applicable to interest on savings accounts

As far as I can see you have the monthly interest paid into another bank account , and you can use that as and when you want to withdraw it,

you leave your balance in the account earning monthly interest , and use the monthly money as required..?

[nemo38]

Anyway, I just went online and put some money into this account. Since I am already a HSBC premiere customer it was very simple.

[sonicdragon]

As far as I can see you have the monthly interest paid into another bank account , and you can use that as and when you want to withdraw it,

you leave your balance in the account earning monthly interest , and use the monthly money as required..?

So are you are saying that you prefer 6.08% per annum paid monthly, to 6.4% paid annually ? I see the attraction in the case where monthly payments are needed from a cash-flow perspective or for budgetting, but not otherwise.

[lannarebirth]

Are you taking into cosideration currency risk? If you would never consider another currency than the GBP, then that wouldn't matter of course.

I believe we are all talking about GBP. I am anyway.

Yeah. me too. I was just pointing out what he was missing, since he asked.

[ThaiLife]

Hi sonicdragon

I am looking for an account that pays a monthly interest amount

to use for day to day expenses , and thought the HSBC Online Saver

account looks OK..? as an existing HSBC customer this account

looks simple to set up ....?

TL

[tayto]

New applicants to HSBC must be able to say YES to the following questions.

Are you aged 16 or over?

Have you been a permanent resident in the UK for at least the last 3 years?

Are you able to operate the account solely online?

Always read the fine print.

Would rule out quite a few people here.

Edited August 15, 2007 by tayto

[ThaiLife]

Hi tayto,

I read that too, and being a long standing customer of HSBC I read it as if you already have a current HSBC account

before you apply for an Online saver account , weather your account address is in the UK or abroad, you can apply ..?

or have i got it wrong ..?

TL

[sonicdragon]

Hi sonicdragon

I am looking for an account that pays a monthly interest amount

to use for day to day expenses , and thought the HSBC Online Saver

account looks OK..? as an existing HSBC customer this account

looks simple to set up ....?

TL

As far as I can see with limited time checking these 2 accounts, if you take your lump sum today and put it in A&L, and withdraw 0.5067% each month (the exact amount of interest you would receive on the HSBC account each month) you will have more money in your account on 31 March 2008 than if you put in in HSBC today, while getting exactly the same cashflow each month. Granted, the difference may not be large to you, and there may be other factors such as convenience that weigh in HSBCs favour with you.

That said, I am not very confident that these rates will be available for very long - BoE could be cutting rates next year - personally I am looking at some 2 year fixed deposits of 6.4%.

[ThaiLife]

sonicdragon .. good point ( I am not very confident that these rates will be available for very long )

TL

[edwinchester]

Hi sonicdragon

I am looking for an account that pays a monthly interest amount

to use for day to day expenses , and thought the HSBC Online Saver

account looks OK..? as an existing HSBC customer this account

looks simple to set up ....?

TL

As far as I can see with limited time checking these 2 accounts, if you take your lump sum today and put it in A&L, and withdraw 0.5067% each month (the exact amount of interest you would receive on the HSBC account each month) you will have more money in your account on 31 March 2008 than if you put in in HSBC today, while getting exactly the same cashflow each month. Granted, the difference may not be large to you, and there may be other factors such as convenience that weigh in HSBCs favour with you.

That said, I am not very confident that these rates will be available for very long - BoE could be cutting rates next year - personally I am looking at some 2 year fixed deposits of 6.4%.

Hi, ICICI Bank in the UK are offering 6.55% fixed for the next year if your interested.

[sumrit]

Hi sonicdragon

I am looking for an account that pays a monthly interest amount

to use for day to day expenses , and thought the HSBC Online Saver

account looks OK..? as an existing HSBC customer this account

looks simple to set up ....?

TL

If you have the interest paid into your on line saver account you will not be able to withdraw it without losing the total interest payment on your account for the month that you make the withdrawal (you don't just lose interest on the money you withdraw) so if you need to withdraw the interest regularly for day to day expenses you will need to have it paid into a different account each month.