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Alert For Those In HSBC Promo Advance Savings -- Changes

me1004
me1004   |     |   537 posts since 2010

HSBC Bank has issued a notice that on Nov. 2, it will be changing statements and interest postings from monthly to quarterly. This is a very significant change because HSBC rules are that if you close an account before interest is posted, you lose all accrued interest - that is, you could lose up to three months of interest because of this change.

This could especially be an issue for those who, like me, got into the Promo Advance (or Premiere) Savings that was offered back in June, giving 1.5% APY on the liquid savings account until Jan. 19. The more money you have in that account, the more significant this is -- many, like me, put CD amounts in that savings, and for some people, that is quite a substantial amount.

Under either the monthly or quarterly interest posting, if you waited until Jan. 19 to close your account, you would lose 18 days of accrued interest (interest posts on the first of the month, not the last day of the month). For some, that might not be much, but if you have substantial money in this, that could be a substantial loss, maybe $100 or even $200 for 18 days, more than half the month, of lost interest.

So, you might have figured on drawing it down to minimum (which would be $10,000 to avoid a $20 monthly fee) and leave only that in for 12 more days until the interest posted. But now, you will have to leave that in for 2 1/2 months in order to avoid losing accrued interest -- but that would make no sense since the interest they are offering on the regular Advance savings, which your account will convert to on Jan. 19, now is only .05% APY, and you can get a LOT better at a LOT of other places.

My thinking is that the only way to deal with this issue is to close the account on Jan. 2, after the interest posts the evening of Jan. 1. Of course, even that becomes an issue as Jan. 2 will be a Saturday - and I'm not even sure they are open that day to close accounts! So maybe on Monday, Jan. 4, and lose three days of interest.

An additional issue here is that there is a $25 penalty if the Promo account is closed before Jan. 1, so you don't want to close it before that. At every turn they are hitting us with a penalty.

I took the account because I just could not accept rolling my maturing CD over to less than 1.5%, and then this was offered. I figured it gave me five months to find another CD. I still have three more months to do that -- but even if I do, I will have to leave $10,000 behind until Jan. 1 or get hit with that $25 penalty. If I don't find another CD before that, I will have the full amount there still.

Just an alert so people can figure out what they want to do about this.

The real problem is that HSBC doesn't pay out accrued interest if you close your account before it is posted. Now they have exploited that rule to rob you more by changing the posting from monthly to quarterly. If it were not for the loss of interest, this change would be inconsequential.




me1004
me1004   |     |   537 posts since 2010
Correction for first line: the date that starts is Nov. 22, not Nov. 2.
mantione
mantione   |     |   2 posts since 2015
I just filed online complaints at both  http://www.consumerfinance.gov/
and at http://www.bbb.org/upstate-new-york/
These are easy to fill out and submit.  I think it is unsat for HSBC to unilaterally and arbitrarily change the interest posting from monthly to quarterly.  Customers depend on monthly interest distributions.  This was what was agreed to when the accounts were opened.  If HSBC wants to change this parameter for new accounts from this date forward, then that is fine.  I think it is unsat to make this unilateral and arbitrary change to existing customer accounts.
Sperry8
Sperry8   |     |   37 posts since 2011
And now you should call each and say you made a mistake.  Because all interest was posted correctly by HSBC.  Next time you may want to wait until the end of the promo before complaining.  OP was incorrect.
RickZ
RickZ   |     |   19 posts since 2010
Thank you so much for posting this me1004 – you saved me some money. I hadn’t yet thought about my exit from this account so I wasn’t even focused on the monthly interest payment issue. But now with the change to quarterly interest payments, which I have yet to receive notice of, the affect is much bigger. I think it’s very underhanded of HSBC to make this change now and, given my experience with this bank, I’m sure it was done in an effort to catch people with their pants down when they come in on January 19th to close their account. I even felt a little guilty about putting so much money into this offer when they were seeking a bigger relationship, but I definitely don’t feel that way anymore. I think the best strategy is to draw down the account to $10,000 by December 31st (monthly/quarterly interest is based on the average daily balance) and then close the account in early January. 1.5% interest on $10,000 is only $.41 a day so I’m not too worried about a couple days here or there.  Thanks again – HSBC can’t get away with messing with depositaccounts.com readers.
Patricia Burleson
Patricia Burleson   |     |   3 posts since 2015
Are you saying that the "Premier" accts will convert to regular Advanced on Jan 19?  Also will I be able to withdraw from my Premier acct funds and leave $10K on Jan 2. (when I originally opened the Premier acct it required $100K)  I appreciate all the info you posted here and I will keep watching to see what happens on Nov 22.

I have already pulled out funds from my Premier acct to move over to the NWFGU great offer of 3yr 3.04% CD.
me1004
me1004   |     |   537 posts since 2010
The Premiere will convert on Jan. 19 as well, although I presume to a regular Premiere account rather than the Promo Premiere account.

Everyone should have had the notice about the Nov. 22 statement change on their September statement, at the end of it.

I note, another thing to watch out for if you are Premiere and taking money out: The day you go below the $100,000 mark, you have to notify them immediately and get reclassified right away as Advance -- or you will be hit with a monthly fee. That reclassification is not done automatically by the amount in the account, you have to take action to notify them and ask to be reclassified. That's not something new, but it is not necesarily known by everyone.
Kirkland
Kirkland   |     |   14 posts since 2014
Yikes. I have over 800k in the advanced account and was counting on withdrawing it on Jan 20. My account interest posts once a month on the 22nd through the day before on the 21st. So  if it starts effective Nov 22, then you just withdraw it all except 10k on Jan 20th, but you have to wait until Feb 22nd or 23rd to close out 10k plus to get the interest due between Nov 22 and Jan 19th?
me1004
me1004   |     |   537 posts since 2010
Actually, they did not say every three months for posting, starting on your usual posting date. They said quarterly, which should mean the end of the quarter, which would be Dec. 31 and then March 31. I think  that means the day of the  month your interest posts also will be changed.

You might want to contact them and confirm, so you know to draw  down or flat out close out on Jan. 2  (If you close before that, you will get hit with that $25 penalty, but you can draw down to $10,000 at any time, but ask them at that time to reclassify you as Advance or you will get hit with a monthly charge.)
RickZ
RickZ   |     |   19 posts since 2010
I just got off the phone with an HSBC Advance representative. She told me that the change to quarterly statements on 11/22 only affects the generating of statements and does not change the posting of interest which she said will continue to be posted monthly.  The notice itself only talks about a change to statement frequency and makes no mention of a change to interest posting.  It reads: "Effective November 22, 2015, your HSBC Promotional Advance savings account statement frequency will change from monthly to quarterly."  For example, my interest posts on the 14th of the month and the CSR said that my interest will continue to post on 11/14, 12/14, 1/14 and onward.  I asked her if she was 100% positive in what she was advising me and she that she was.  I realize that often these CSR are incorrect in their understanding of certain issues, so I'm not taking her advice as the final word.  If anyone else has talked with an HSBC representative about this change, I'd be very interested in hearing what information they were given. 
anzavista
anzavista   |     |   3 posts since 2012
I sent HSBC a bankmail last week. The response.."please note that interest on HSBC savings accounts will accrue daily and will be credited to the available balance at the end of each quarterly cycle."
me1004
me1004   |     |   537 posts since 2010
Rickz, I asked into that before I made the original post. And the person I spoke with went  up the ladder to the division that acutally does it. They came back with the answer that in fact, the interest will no longer post monthly, it will post quarterly with the statement.

I also asked if the interest will post on Jan. 19,  when the Promo account converts to a regular one. They said no, it will not, it will post the following March 31.

Mind you, when it posts does not change compounding, as compounding is based on what is accrued. Perhaps the person you spoke with did not understand that difference. This change of posting will not affect the APY. This affects that rule about losing all interest not already posted when you close the account -- I will venture to say that pretty much all the people who took this account will not be satisfied with leaving their money in after Jan, 19, when the account reverts to a regular Advance account, which currently gets only .05% APY.
RickZ
RickZ   |     |   19 posts since 2010
Thank you for the postings me1004 and anzavista.  Although I was crystal clear with the telephone rep, it's not really surprising that I received incorrect information.  I trust your information and will plan accordingly. HSBC could have made this much easier with a clearer disclosure.
me1004
me1004   |     |   537 posts since 2010
The final, absolute confirmation will come in December on what otherwise would have been your normal interest posting date. If it doesn't post then, then it  will post with the statement quarterly. So, by sometime in December, you will know what to do come Jan. 2.
paulaj
paulaj   |     |   10 posts since 2013
Ditto on posting me 1004. My wife and I put substantial sums in Premier and Advance Accts. I went with Advance to be able to draw down funds in case better offers arose before Jan. 19.However,  I am not quite clear from posts as to which is the best date to withdraw funds to avoid losing accrued interest. Could someone provide clear and best date?
paoli2
paoli2   |     |   2,230 posts since 2011
I would think you should contact your particular bank or credit union and ask them when specifically do they actually "post" the interest to your account and when is it available to you for withdrawal.  Other than that, you could check the particular account if it is accessible on the internet and see when they posted past interest to your account.  If it is posted on the internet, it is usually a part of your account and available for withdrawal unless your specific bank has different rules.  I am going by my particular experience with my banks and credit unions.
me1004
me1004   |     |   537 posts since 2010
paoli2, thanks for the effort, but I don't think you understand this account, and apparently that it is at a specific bank, HSBC, and its rules.

paulaj, to avoid losing accrued interest,  you would have to close the account on the date interest is posted. Any interest accrued after that date will be lost if the account is closed before the next time interest is posted.

As for when you should close it if you want out by the time this 1.5% APY ends on Jan. 19 and appears the interest rate will drop to nearly nothing, then you would have to close the account on or shortly after the last interest posting before Jan. 19. 

From reading these posts in this thread, it appears different people have different interest posting dates -- as of now. But after  the changeover  on Nov. 22 to quarterly posting rather than monthly posting,  everyone MIGHT or might not have the same posting date of the end of the quarter -- the language is unclear in the notice to account holders. Nonetheless, I would think you will be able to know absolutely and definitively by the end of December what your posting day will be, by seeing if it posts at the end of this quarter, which ends Dec. 31, or some date other than that for a three-months posting. If you don't have an interest posting by the end of the quarter, then you are on a three-month schedule on another date. But since the notice refers to it as "quarterly," rather than as "every three months," I have to expect that to mean the quarter.

So, by the end of the quarter on Dec. 31 (maybe the interest will post on  Jan.1), you will know, and from that, you can decide whether to close on Jan. 2,  a Saturday (if you can -- no branches around me are open on Saturday)  or Jan. 4, Monday; or if your interest was not posted at the end of the quarter, wait  until your interst is posted, in that case maybe by Jan. 22 (the 22nd seems to  be when most other people have a posting date for now, mine currently is posted  the first of each month), three days after your rate changes. However, if you are not changed to posting at the end of the quarter, instead are on  a three-month posting from your last posting, the last posting was probably Nov. 22, then your three-month posting  might not be until Feb. 22! That is an added complication for people with interest being posted on the 22nd of the month if it is not changed to end of the quarter.

I note, you can close the account at any time, but if you close it before Jan. 1, you get hit with a $25 fee. But you could alternately draw it down to $10,000 as an Advance account  (and you can have your Premiere account reclassified as Advance, and in fact you must initiate to do so if it drops below $100,000 or suffer a monthly fee) and maintain that until Jan. 1 or some later date, and then close it.
luvmycat
luvmycat   |     |   7 posts since 2014
Received the following response to my bank mail from Advance Banking Specialist:

"Thank you for contacting HSBC Bank USA, N.A.
We appreciate the opportunity to service your account online.We confirm that the interest on your HSBC Promo Advance Savings Account will get credited by the date range of December 21-22. If you have any further questions or concerns, please don't hesitate to contact us. Our Advance Relationship Center is always available, 24 hours a day, 7 days a week to meet all of your banking needs. You may contact one of our professionals via our secured 'BankMail' option available while you are logged into your Personal Internet or Mobile Banking services. Sincerely, Customer Relationship Center Advance Banking Specialist"
me1004
me1004   |     |   537 posts since 2010
Thank you for that, Luvemycat. But as customer service people can be, that still strikes me as questionable, since it is referencing the December date. The changeover has already happened, on Nov. 22. So no one will be getting interest posted on Dec. 22 or counting three months after that date for their next posting; if anything, they would be counting three months from their  interest  posting around Nov. 22. Yet, they reference that date -- it sounds like the customer service rep didn't even know what date the changeover happened on! That reference does not give me confidence that that person knew what he/she was talking about -- too often a  problem with customer service people. So I suggest people still keep a lookout through Jan. 1 to see if they get a posting, then they will know for sure.
luvmycat
luvmycat   |     |   7 posts since 2014
I sent a further inquiry and received the following response:
"Thank you for contacting HSBC Bank USA, N.A. We understand your concern with regard to the interest on your Promotional Advance Savings Account. Please be assured that your account will be credited with the interest on January 20, 2016. If you have any questions or concerns, please reply to this BankMail or contact our Advance Relationship Center at 1-866-584-4722."
me1004
me1004   |     |   537 posts since 2010
Excellent, luvmycar. That appears to be saying that the interest will be credited when the promo ends and the account is converted to a regular Advance account.  I was wondering about that. Good to know. But if the "quarterly" posting date matters to anyone, I don't think that is what they are referring to, considering the specific day they mention. But I think most just want to know when they can close the account without losing interest, and so Jan. 20 would be such a date.
me1004
me1004   |     |   537 posts since 2010
To report the latest problem in this changeover and communication from HSBC:

The notice on my monthly statement about the changeover said it would start on Nov. 22. As I have previously said, in a call to HSBC and making the CSR actually contact the department handling this, I was assured that the interest posting would change with the change in the frequency of issuance of statements.

Well, I just checked, and I did get a monthly interest posting on Dec. 1. I don't know if they will be generating a statement or not, but I got an interest posting -- despite previously being told I would not, it would be posted when the statement came out at the end of the quarter.

Oh well. Who knows what is going on. We certainly can't depend on anything HSBC tells us.
Ricochet
Ricochet   |     |   231 posts since 2010
I dont have any accounts, but the Sky might fall attitude of this thread is pretty funny.
There are other FI that only issue statements quarterly if you have a certain type of account.
Interest still posts andyou get it all , even closing before statement.
Saves em money.
Rickz post on Oct 17 2015
was the voice of reason on this topic.
over and out
me1004
me1004   |     |   537 posts since 2010
OK, HSBC is getting idiotic now. I just checked my e-statements, and wouldn't you know, despite giving in print that they were ceasing monthly statements as of Nov. 22 and would instead issue  statements quarterly, they issued a statement on my account on Nov. 30, my normal monthly statement date. I imagine I will get that in the mail any day now.

Who  knows what they are doing, apparently just jerking us around.
Kirkland
Kirkland   |     |   14 posts since 2014
So originally my interest and statement always posted on the 21st (for example Nov 21 my last interest and statement was received). Today I received a new statement dated the 30th where interest is posted from the period of 11/21/15-11/30/15. So now I think they do not plan on sending me another statement nor posting any more interest till when?
Kirkland
Kirkland   |     |   14 posts since 2014
Oh I see now they indicate the dollar amount of interest earned for the time period from 11/22/15 to 11/30/15 but they do not actually credit my account for that interest yet.
me1004
me1004   |     |   537 posts since 2010
Well, watch that carefully. Don't forget, under their disclosures, any interest not yet posted (and if it is not credited, I have to think that means it is not posted) is lost if you close your account.
Anon456
Anon456   |     |   95 posts since 2011
HSBC has been VERY difficult to contact,  Takes about 5-10 minutes of telephone prompts and waiting to ever get to a CS agent.  Even then, there is usually an accent problem.

Called to close my account.  Was open over 6 months, so no fee charged.  Waited until the day after interest was paid AND posted to the account.  Check arrived (via FEDEX), but was only for the savings account.  Had to call about the checking.  They claim it must be in a separate check in the mail for later this week.  Will report back on that.
me1004
me1004   |     |   537 posts since 2010
When did they post your interest?! Mine was not posted this month, they simply noted what was accrued, but it was not yet posted into my account. If not posted, it is lost when you close an account. They said they were switching to quarterly posting, so how did you get a posting before that? Are you sure you got all the interest in your check, are you sure it was "posted" rather than simply noted?  

You're lucky to get in in 10 minutes time on the phone! That phone system is a horror. Even the  branch could not get through on it, we have eto figure out a work around, which still takes at least 10 minutes.
Anon456
Anon456   |     |   95 posts since 2011
not sure about noted verses posted.  My dividends were always shown around the 18th.  I did not see it on the 18th and called.  They said it was in the account - but did not show up online until the next day.  YES, my check was for the full balance.

Good while it lasted, but money was not worth the poor customer interface.
me1004
me1004   |     |   537 posts since 2010
Well, I got my statement early this month, dated  Nov. 30, even though the notice was that it would be changed to quarterly as of November 22. In fact, that same  notice was on top of the Nov. 30 statement -- makes no sense. But it simply noted the accrued interest through the last day of November, Nov. 30;  it did not post it, it was not included in the balance.

My statement date previously was always the last day of the month, and it appears it still is, but this time it did not post the interest, as it used to, simply noted what was accrued, and even added a notice that it was not available until posted.

In looking at the account online, I now see the interest was posted a day later this time, on Dec. 1. But previous statements, while dated the last day of the month, still also posted the interest on that statement, noted as through the first day of the next month. This time, it did not post that interest on the statement, did not post it until the next day.

Why they have now made their posting date and statement date out of sync -- who knows. Why  they even issued a statement from Nov. 30 after saying statements would be moved to quarterly, who knows. Gee, I hope they are not  measuring the quarter from Nov. 30, as that would mean no more statements (and maybe no more interest posting) until end of February.

Who knows what's going  on -- this communication from them has been abysmal -- and is NOT in sync with what they are doing.

So, since they posted my interest a  day after the statement, yes, you got the full balance when you closed, including interest since it was posted.

Just don't close on the statement date, wait until the interest is posted a day later.
me1004
me1004   |     |   537 posts since 2010
Updating with December:

My interest was posted on Dec. 31, not on Jan.1, the first of the month, as was done a month ago. Rather than noting what was accrued, as the Nov. 30  statement did, it noted the interest was "paid" and was through Jan. 1, and it was added into my account balance.

So, I'm now ready to close -- but can't do so until their offices open again on Monday. I would wait until the promo rate ends on Jan. 19, but there is no reason  to expect interest will be posted when they convert the account to a regular Advance account at a low rate, so any interest between now and then would be lost when closing the account.
Ricochet
Ricochet   |     |   231 posts since 2010
i hope this thread has not influenced  many to make
decisions based on speculation.
Continues to be a mountain out of a mole hill
gbtexas
gbtexas   |     |   28 posts since 2013
I would agree with your belief that a mountain has been made out of a mole hill. I would also agree with those who state that customer service is deplorable. As for myself, I intend on closing the promo savings account next week and transferring the funds electronically into the checking account and simply writing a check for the balance. Because I opened a second savings account to take advantage of the onus offer, I won't incur any monthly fees. 
NYCDoug
NYCDoug   |     |   30 posts since 2011
The CSR with whom I spoke yesterday morning at my local branch in NY assured me that -- to the best of her understanding -- while  statements would "post" (in the mail) on a quarterly basis [to cut costs, obviously] interest would continue to "post" monthly, at the regularly scheduled time of the month. Mountain or mole hill, indeed we have some language problem going on: When is a quarter not a quarter? {Interest~ing question!} . . . Hope this "post" helps generate some change  ;-)

For what it's worth, as of this writing {Jan 3rd} the latest line item statement of interest in my Promo Advance Savings account reads: "INTEREST PAID FROM 11/23/15 THROUGH 12/22/15
INCLUSIVE AVERAGE DAILY LEDGER BALANCE"

Certainly the proof of the pudding will be what happens on 1/22/16 . . . If interest posts, then I close and move on. If no interest then I may reduce holdings to the minimum $10K, and wait it out to the end of the next "quarter" (whenever that may be).  I, too, have another $10K account there, for the $350 bonus -- which I expect in mid-May, after meeting all requirements [3 months of direct deposits, etc.] and waiting out their "8 weeks" for that bonus to post. Hope you're right about having that 2nd account open with HSBC to avoid fees; seems they keep changing the rules on us!

What a crazy (ambiguous) way to start the new year, though, with so much banking uncertainty . . .  Wishing all a Happy and Prosperous 2016 ~ Good Luck!
Patricia Burleson
Patricia Burleson   |     |   3 posts since 2015
I just checked my HSBC Promo Premier Savings acct. Today 1/03/16, 12/08/15, Interest paid 11/9/15 through 12/8/15.  It seems that my monthly interest is showing around the 7th-9th of the month.  So I assume interest to show by 1/8/16. 

I have $100 in the checking and I would like to close both accts at the same time.  So I'm thinking I'll wait until 1/22/16 to close the accts.  I have been using ACH to transfer funds out of HSBC into Alliant CU.  Of course leaving $100K in the Premier acct. 

Any new info on procedure to close these accounts? 
gbtexas
gbtexas   |     |   28 posts since 2013
Closed my promo account this morning. No problem. Simple as abc. Transferred funds into checking account, then wrote checks to remove.  Left Ching account open because of the other advance savings account I opened to take advantage of their bonus offer. As was pointed out multiple times, interest accrued is lost. But because my account last paid interest on around 22nd or so last month and because I had reduced the balance to a little more than 10k somwtime earlier, I may have lost somewhere around 4 to 5 bucks. No big deal. Not sure how hsbc determined who would be mailed conversion letters (monthly to quarterly, but I'm glad I wasn't one of them.   As you can tell by the tone of of what I've written, my impression of this bank is favorable overall. I really don't find them difficult or sneaky as had been suggested by some. 
me1004
me1004   |     |   537 posts since 2010
Just FYI, the notice HSBC sent about the conversion to quarterly was not a separate notice, it  was on top of the first page of the monthly  statement -- perhaps you simply didn't see it there.
Patricia Burleson
Patricia Burleson   |     |   3 posts since 2015
I closed my Promo Savings acct today.  My funds were ACH out of HSBC a few days ago. The interest was posted on 1/8 and today there was a 0 balance showing. The Checking acct had $110. and HSBC will mail me a check, should rec 3-4 days.  CLOSED & DONE!! 
Sperry8
Sperry8   |     |   37 posts since 2011
This thread and OP turned out to be 100% wrong.  I received all interest and closed account the day after the promo expired.  I normally get interest posted every 15th of the month and this happened as usual.  On the 20th I just transferred all monies out via ACH. A few days later I saw a credit for interest from Jan 15-19.  HSBC gave everything it promised without issue.  
me1004
me1004   |     |   537 posts since 2010
The OP (me) isn't wrong -- the OP reported exactly what HSBC was saying. HSBC, as noted several times in this list, was saying all kinds of things, different things to different people, in writing and not, that were not so -- and nothing it said could be relied upon, as explained. HSBC put in writing on mulitple statements that they were changing what they were doing -- but they didn't follow through with the change. That's not the the OP being wrong, that is HSBC being 100% unreliable, even with what  it puts in writing, as was noted mutltiple times as the thread evolved. And as the thread evolved, that is what became the issue, that we could  not have an idea what they were or were not doing, could not even take what they put in writing as  fact.