HSBC Online Bonus Saver

[Loup321]

HSBC have a savings account paying 3.00%. It is their Online Bonus Saver. Minimum deposit is £1 and maximum is £10,000 (you can put more in, but only get 0.75% over this threshold). It's instant access, but in months where you make a withdrawal the interest rate is reduced to 0.50%. Variable rate.

In case you're interested...

[Steveam]

HSBC have a savings account paying 3.00%. It is their Online Bonus Saver. Minimum deposit is £1 and maximum is £10,000 (you can put more in, but only get 0.75% over this threshold). It's instant access, but in months where you make a withdrawal the interest rate is reduced to 0.50%. Variable rate.

In case you're interested...

Thanks for mentioning this. I opened an account a couple of weeks ago. Note that you get 0.5% interest in any month you make a withdrawal.

Best wishes,

Steve

[Arizona11]

Thanks, set up today and very easy as I am with them anyway

[AJC5001]

I've just opened one of these as well.

I was going to pay in the full £10k to maximise the interest, but there are a couple of wrinkles with this.

The interest paid will increase the balance to over the £10k eligible for 3.0% interest, so will only get the 0.75% rate - in other words it doesn't compound at 3.0%.

You can't just withdraw the interest so the balance remains at £10K as that means the next month only gets the 0.5% rate.

So, to keep the compounding at 3.0% I'm going to deposit £9400 which will allow for two years of compounding.

Also, if I need to make any withdrawal, I'll withdraw the full account value to avoid anything being left in the account at 0.5%. Anything I don't need can go in my Marcus account at 2.5%. I can then pay anything not needed back into the HSBC account.

If the rates elsewhere improve at any time, I'll just close this account.

Adrian

[AJC5001]

I've checked the rates on this account today, an found out that it is now significantly different from when it was originally introduced last year.
The Bonus interest rate is now 4%, and this is payable on up to £50,000 instead of £10,000 and there is no maximum account holding.
https://www.about.hsbc.co.uk/news-and-media/hsbc-uk-confirms-new-savings-rates

Pity that 4% is no longer a top rate, as the withdrawal penalty makes it difficult to use.

Adrian

[didds]

Pity that 4% is no longer a top rate, as the withdrawal penalty makes it difficult to use.

Adrian

Indeed - as an example I got a notification yesterday that my Chip account has raised to 4.51%, instant access.