Hsbc Online Saver 6.08% V 5.4 %

[ThaiLife]

I currently have a UK Alliance & Leicester off shore savings account

paying 5.4 % gross. I can access this account on line, and have the interest

transferred monthly into my HSBC UK cheque account. Ive posted and read several items here on TV about the HSBC Online Saver account, which after reading the reply’s seems to be a good account to have

Now I am just wondering if there would be any benefits

In switching to the HSBC Online Saver account, which is currently paying 6.08% gross ive read the conditions for this

Account and the only thing that seems to be a negative point is , if you make a withdrawal ( not monthly interest ) from your account balance , you would not

Receive any interest from the account for that month.

Are any forum members using the HSBC Online Saver account, if so

Can you comment on it please, or comment on the possible pro’s and con’s

Of switching accounts to gain the extra interest % .

To switch or not to switch ...?

Thanks ..... TL

[think_too_mut]

I currently have a UK Alliance & Leicester off shore savings account

paying 5.4 % gross. I can access this account on line, and have the interest

transferred monthly into my HSBC UK cheque account. Ive posted and read several items here on TV about the HSBC Online Saver account, which after reading the reply’s seems to be a good account to have

Now I am just wondering if there would be any benefits

In switching to the HSBC Online Saver account, which is currently paying 6.08% gross ive read the conditions for this

Account and the only thing that seems to be a negative point is , if you make a withdrawal ( not monthly interest ) from your account balance , you would not

Receive any interest from the account for that month.

Are any forum members using the HSBC Online Saver account, if so

Can you comment on it please, or comment on the possible pro’s and con’s

Of switching accounts to gain the extra interest % .

To switch or not to switch ...?

Thanks ..... TL

I use StGeorge Direct Saver that does basically the same thing and there is no penalty if you take a portion of the money out any time.

In Australia, HSBC advertises rates higher than StG and all I have to do is give them account number and fax authorization, they will switch it for me. Or was it all possible online, with no paper and faxes, can't remember.

That was for Australian citizens.

Now, one common thing, UK or OZ:

The reason I a have not switched - sometimes the fastest way to make funds available for withdrawal in Thailand is to move the money from that StG saving account into another one. Over 2 years that I have had it, I needed that about 10 times, smallish amounts (10-15K baht) which will mean, with HSBC, I would lose interest for those 10 months. That's a considerable money, about 300K baht.

If I had a need for an account that will invariably only grow, I would go with HSBC.

[cmsally]

The big catch with that one is you can hold only one online saver acct per person and that withdrawing funds from it ,will make you forfeit the interest on the entire amount in that acct for that particular month. Other than that it seems to be OK. I have one but have to be very careful not to put any money in there that I might want to use.

[ThaiLife]

Thanks for the comments...

I don't need access to the money in the A+L account , so the penalty of loosing

interest for one Month should not be a problem, ive had the A+L account for some years now

but the HSBC online Saver account current interest rate looks tempting at 6.08% , but would it be worth switching

to the HSBC account , I'm not too sure if in the long term it would be better / make any difference ..?

Thanks TL

[samtam]

The 6.08% is only for GBP50,000. The rest earns less.

[ThaiLife]

Hi samtam

yes sorry I forgot to include that in my post, even if I have say £ 50,000 in the HSBC Online saver account

and they pay ..( The current interest paid is AER 6.25% on a balance of up £ 50,000 )

and then any amount over the £ 50,000 would pay ( Any amount placed in an Online Saver account

over £ 50,000 will have the interest amount paid as AER 5.75% ) the Two amounts £ 50,000 + £ ????

the total interest amount would be more than the A+L currently pays..?

have I got that right ..?

Thanks TL

[cmsally]

Why not pay into a fixed acct which have rates of over 6%

for example Anglo Irish or Bank of Scotland

Rates are around 6.5-6.7%

[ThaiLife]

Thanks cmsally

I think a problem may occur with me not having a UK Home Address..?

TL

[cmsally]

The rates I just quoted above were offshore - so no need for UK address

[JAS21]

Um..I have money in A&L International (Isle of Mann) paying 6.4% Its an internet account..mine sounds better if u r interested

[ThaiLife]

Hi John45

I think you may be talking about the A+L eSaver Offshore account, ...

http://www.alliance-leicester.co.im/offsho...ver.aspx?bhcp=1

This account pays the interest annually on 31 March ,and both the HSBC Online Saver account

and my current A+L account pay the interest Monthly , which is what I really need .

Thanks ...TL

[Khun Bob]

depends if u want off shore or on shore accounts...

best onshore in 6.8 in term deposit - there are up to 12% in a regular saver but that is for small amounts

you can get 6.7 in a term deposit gbp in malaysia

below i put an email i receive weekly on the best paying accounts - this covers instant savings, terms and offshore...

Provider Account Type Notice Period Rate (AER) on £10000.00

Bank of Scot (E) Term/Bond 3 mths 6.88%

Halifax (E) Term/Bond 3 mths 6.88%

Abbey Term/Bond 2 mths 6.87%

ICICI Bank (E) Term/Bond 12 mths 6.75%

Bank of Scot (E) Term/Bond 24 mths 6.75%

Provider Account Type Notice Period Rate (AER) on £10000.00

Brad & Bing Instant/Direct Access 0 days 6.40%

A & L Instant/Direct Access 0 days 6.31%

ICICI Bank Instant/Direct Access 0 days 6.31%

NorthernRock Instant/Direct Access 0 days 6.31%

AA Instant/Direct Access 0 days 6.30%

Provider Account Type Notice Period Rate (AER) on £10000.00

Anglo Irish Instant/Direct Access 0 days 6.19%

Barclays Instant/Direct Access 0 days 6.05%

A & L Int Instant/Direct Access 0 days 6.00%

N/wide Int Instant/Direct Access 0 days 5.95%

Abbey Int Instant/Direct Access 0 days 5.65%

HTH

[ThaiLife]

Thanks Khun Bob

At the moment I get my A+L off shore interest paid gross as a current

Non Uk resident, am I right in thinking if I am looking for On shore

Then I need a current UK address..? my main thought was as the HSBC Online

Saver account will pays me Gross , and it’s a better current interest than my current

A+L off shore account , should I consider changing , ..........taking this into consideration …

……..

yes sorry I forgot to include that in my post, even if I have say £ 50,000 in the HSBC Online saver account

and they pay ..( The current interest paid is AER 6.25% on a balance of up £ 50,000 )

and then any amount over the £ 50,000 would pay ( Any amount placed in an Online Saver account

over £ 50,000 will have the interest amount paid as AER 5.75% ) the Two amounts £ 50,000 + £ ????

the total interest amount would be more than the A+L currently pays..?

so any new account I apply may require a UK home address ..? I do have a

friends address I can use in the UK, to have an account registered there but

I am not planning to return to the UK ( not been back for 12 years ) so I cannot

Make a personal visit to apply for an account …

Any ideas….

Thanks TL

[david96]

Remember you may have to pay income tax on the interest and in Australia you advise the bank of your tax file number if you do not they will deduct tax at 48.5%. If an offshore account you may not be subject to tax. They are a viable alternative to the term deposit. Do not forget the bank fees and charges that may be applicable when you move money between accounts.

[endure]

If you're having to pay tax on the HSBC account that knocks the rate down to 4.864%

[mamanoodle]

We have offshore HSBC account, live here in Thailand but have problems accessing internet banking due to some online security issues, maybe worth checking this out first, our account in Jersey.

[JAS21]

Hi John45

I think you may be talking about the A+L eSaver Offshore account, ...

http://www.alliance-leicester.co.im/offsho...ver.aspx?bhcp=1

This account pays the interest annually on 31 March ,and both the HSBC Online Saver account

and my current A+L account pay the interest Monthly , which is what I really need .

Thanks ...TL

Yes..but if you cant beat the rate then you could work out how much you could take out monthly to balance the March interest..e-accounts are easy to operate.

[ThaiLife]

Thanks ...John45

ive just checked on the A+L web site as your idea sounds good...

Key Features

* Minimum balance £1,000*

* Maximum balance £1,000,000

* Minimum withdrawal £1,000 - Easy access, no notice required

* Interest paid annually on 31 March

* Withdrawals available by free BACS

or paid for funds transfer

Managing your account

* Manage your account by Internet Banking

How to apply

* Exclusively available online - no forms

to print or post

Other information

* Learn more - User Guide and FAQ

* View Terms and Conditions

* Protected by the Isle of Man Depositors' Compensation Scheme

*Accounts must be opened with money that is not

already deposited with the bank

the Two ( bold ) points look like the idea is not possible as my monthly approximate interest payment

would not be over £ 1,000 , also it looks as if they wont accept money already in another A+L

account to open this new account ..?

Thanks

TL

[martaway]

Nationwide E Bond 6.7 % gross fixed for 1 year

Open and access vis internet

[ThaiPauly]

I have an HSBC On-Line Saver account.

Yes , when you draw money out you loose the interest for the whole month...but if you open a "Serious Saver Account" with them, if you transfer the money at the begining of the month from On Line Saver to Serious Saver you will still get 3.85% for the rest of the month, then at the end of that month put it back in On Line Saver. So you won't get "no interest" for a whole month, just a reduced amount

The trick is to kinda know when you are going to need the money really

[ThaiLife]

Have I got this correct , HSBC Online saver currently

Pays monthly interest at AER 6.25% on a balance of up £ 50,000

and any amounts above £ 50,000 would be paid the interest of

AER 5.75% . if you are Tax exempt as I am , you would be paid

the above interest rates Gross.

So if I deposited £ 100,000 in the HSBC Online Saver account

I would receive ...

one months interest at AER 6.25% ( £ 50,000 )

one months interest at AER 5.75% ( £ 50,000 )

the Monthly interest would then be paid into a separate

HSBC bank account automatically each month , and as this

transfer is HSBC account to HSBC account no transfer charge

would be made.

The monthly interest transfer is not counted as a withdrawal

according to the info, so you would not loose a months notice

each month .

There no fees involved with the monthly interest transfer

to another HSBC account

As I am a current Uk non resident there is no Tax liability

does any one know how to work out the monthly interest

for AER 6.25% ( £ 50,000 )

AER 5.75% ( £ 50,000 )

Thanks TL

[Brigante7]

Have I got this correct , HSBC Online saver currently

Pays monthly interest at AER 6.25% on a balance of up £ 50,000

and any amounts above £ 50,000 would be paid the interest of

AER 5.75% . if you are Tax exempt as I am , you would be paid

the above interest rates Gross.

So if I deposited £ 100,000 in the HSBC Online Saver account

I would receive ...

one months interest at AER 6.25% ( £ 50,000 )

one months interest at AER 5.75% ( £ 50,000 )

the Monthly interest would then be paid into a separate

HSBC bank account automatically each month , and as this

transfer is HSBC account to HSBC account no transfer charge

would be made.

The monthly interest transfer is not counted as a withdrawal

according to the info, so you would not loose a months notice

each month .

There no fees involved with the monthly interest transfer

to another HSBC account

As I am a current Uk non resident there is no Tax liability

does any one know how to work out the monthly interest

for AER 6.25% ( £ 50,000 )

AER 5.75% ( £ 50,000 )

Thanks TL

I would hazzard a guess that to work out the monthly interest would go like this.

AER 6.25% (£50,000) 1% of £50,000 = £500 x 6.25% = £3125 a year divided by 12 months = £260.41

AER 5.75% (£50,000) 1% of £50,000 = £500 x 5.75% = £2875 a year divided by 12 months = £239.58

Total £499.99 a month

But then that seems to logical to me so I guess it's nothing like that and I'm sure somebody will agree with me and correct me

[PattayaParent]

I have both the ALIL eSaver and HSBC Online Saver Accounts.

Can't you just put a new 1,000 quid into the ALIL eSaver account to open it and then transfer your monthly interest from the HSBC Online Saver account to the ALIL account?

There's no charge for the transfer as ALIL bank with HSBC but not the other way around (ALIL will charge you for transfers to HSBC).

[ThaiLife]

Hi Pattayaparent ....

Thanks for your reply,

At the moment I have an A+L offshore account which pays me 5.4 % gross monthly

And the Monthly interest is transferred by A+L free of charge to my UK HSBC Cheque

Account, then I do an electronic transfer of money from this UK HSBC account

to my Thai Bank as and when I need it , Normally every Six Months.

so as you can see I use the monthly interest each Month for living expenses

here in Thailand, so using the A+L eSaver account would not let me use any

interest earned , as the eSaver account only pays interest once a year .

I am still looking for options to earn more guaranteed monthly interest

with easy access, this is why I was looking at may be using the HSBC

Online Saver account in some way ..?

Thanks

[PattayaParent]

You actually earn interest on a daily basis, it is only credited yearly so with the ALIL eSaver you would be drawing down the capital the one time in 6 months but so long as you didn't draw down more than you will earn in interest at the end of the year you'd still be quids in, and remember to make your second draw down AFTER the interest has been credited.

[PattayaParent]

I should have said

so long as you didn't draw down more than HALF OF WHAT you will earn in interest at the end of the year

By the way the ALIL eSaver interest is now 6.51%

[ThaiLife]

Thanks Pattayaparent

I am still trying to find an online calculator to convert AER % to Gross % and vice versa, the only thing ive come

up with is this and its a bit beyond me..? Any one know of an online converter ...?

Thanks

Does anyone have the formula for converting Gross interest to AER and vice versa.

E.g. You know the Gross interest for an investment but want to calculate what the AER is if the interest is paid monthly.

I'm not sure but I think its:

12*((1+AER)^(1/12)-1)

so for 5% interest rate you get:

12*((1+0.05)^(1/12)-1) = 4.89%

does that seem right?

This assumes that you remove the monthly interest and don't allow it to compound. If you allow it to compound then you get AER = gross rate.

In reverse it is

((1+gross_interest/12)^12)-1

so for 5% gross interest rate you get:

((1+0.05/12)^12)-1 = 5.12%

as the AER.