HSBC Online Saver seems to have a pretty good AER compared to other low-risk options like NS&I, Nationwide, BOS or HBOS.

• Instant access
• Large bank - the chart posted here shows they should be low risk
• Monthly interest
• Invest up to £50,000

The only potential issues seem to be that:

1. the rate is variable - perhaps a fixed rate account is better, considering the potential drop in the base rate
2. if you make a withdrawal you lose that month's interest - but not many of us are likely to make regular withdrawals

Any comments?

Selfish bump! Any comments on this option?

I'd also be really interested to see if there are any other low-risk high street accounts with a comparable AER out there.

Shouldn't you just look at moneysupermarket or moneysavingexpert or something?

I'm more interested in the information that isn't available from those sites. For example, HSBC’s deposits exceed the credit they have extended, which makes them quite low-risk in terms of becoming illiquid. Coupled with the attractive rate on their online saver account, this would make them an ideal savings account considering the recent (and possibly continuing) turmoil.

I'm asking whether people agree with this and if there are other comparable low-risk, high-return accounts.

Hi Diss , back in March i attempted to open one , they sent me forms but wanted ID , longgggg story but after about 3/4 weeks the account wasn't open , i phonend twice both times getting a air head , i never did deposit anything with them and finally got my ID back , waste of time.

http://www.principality.co.uk/

Dunno much about the standing of mutuals

Looks alright, but not being allowed to take money out without penalties kills it for me. Can't be arsed for the extra 0.05% interest it gives over Icesave (which has no such penalties)

Bradford and Bingley are doing 6.4% with no penalties* if you've balls / ovaries of titanium.
http://www.bradford-bingley.co.uk/savings/...ernet-saver.asp

*except possibly losing all your money

Thanks for that, I'll apply for that later on Monday!

NS&I is tax free - check out their index-linked savings.

Thanks Grey Shark. I'm already with HSBC so I would hope to have an easier time of it, but we'll see!


That looks OK. Are they linked with any other banks/BSocs?


I've been wondering about Icesave.

This appeared in our NewsBlog, which made me worry a bit

Icesave have a small exposure to UK sub prime via Heritable and have been extremely active in the financial markets with some risky and over ambitious acquisitions. Iceland, like certain other countries, has been given sub prime status by much of the carry trade money markets and is going through a boom period mainly due to its financial aggressive behaviour.

What are your thoughts on them?


Thanks for the reminder about NS&I.

I had a very similar experience. I did eventually get the account open, but as there are better accounts out there (like Sainsburys bank) that don't impose a penalty for withdrawals, it's still sitting there with £100 in it. I should probably close it, but I'm hanging on in case it suddenly becomes a better deal for some reason.

An update on this is that HSBC don't allow a joint online-saver account, which eliminates tham from my list of options.

Mrs CTT and myself both opened up an online saver with the max.

Quite a surprise receiving the first month`s interest compared with our other accounts.

BTW you can have the interest paid monthly into any account if you wish to use it with no penalty, only withdrawing deposits will be subject to the loss of a month`s interest.