HSBC customers will receive a boost to their savings, the bank has announced.
The popular bank chain will increase interest rates on some saving accounts with increases of up to 0.75 percentage points from Thursday, June 8. It includes an increase on the bank's mysavings and premier savings youth accounts, taking rates to 5 per cent.
Meanwhile, the rate on HSBC’s online bonus saver instant access account, for balances up to £10,000, will rise by 0.50 percentage points to 4.00 per cent. The rate on balances over £10,000 increases by 0.30 percentage points to 2.30% alongside a 0.50 percentage point increase to its Isa range.
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Furthermore, its one-year fixed-rate saver increases by 0.40 percentage points to 4.40 per cent, with a two-year, fixed-rate saver increasing by 0.35 percentage points to 4.45per cent. Pella Frost, HSBC UK’s head of everyday banking, said: “We know that having a savings habit helps build financial resilience and means that you’re better placed to handle any disruption.”
Rachel Springall, a finance expert at Moneyfactscompare.co.uk said: “HSBC’s rate increases will be welcome news for their loyal customers, and the new rates across easy access, regular savings are competitive in the present market. The mysavings children’s account will pay 5%, one of the best returns in its sector.
“As a whole, the savings market has been blessed by rate increases thanks to a combination of the Bank of England rate rises and competition. Away from the biggest banking brands, challenger banks continue to jostle for table-topping positions to entice savers’ deposits, so it’s wise to keep a close eye on the moving market.
“Those savers who have not reviewed their savings pots for a few months should be encouraged to do so, as where a top rate on easy access accounts of 1% could not be acquired at the start of 2022, savers would now find 3% or more as a competitive return in the present market on offer from various providers.
“As interest rates continue to rise, it’s uncertain whether savers would be content to lock their cash away for more than a year, particularly if they feel more improvements could surface or if they need the reassurance of dipping into their savings pot. Spreading cash across both easy access accounts and short-term fixed to secure a guaranteed return could be a wise move to get the best of both worlds.
“However, savers who are comparing easy access accounts must be mindful that not all of them allow unlimited withdrawals and, in some cases, heavy bonuses can apply for just 12 months – so it’s wise to make a note to switch before they expire.”
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