HSBC to boost interest rate on some savings accounts

HSBC has announced that they will boost interest rates on some of their savings accounts with increases of up to 75 percentage points which will comes into effect on 8 June.

The mysavings and premier savings youth accounts will be increased which will take the rates to 5%.

The online bonus saver instant access account will see the rate go up by 0.50 percentage points to 4% for balances over £10,000.

For balances over £10,000 the rate will increase by 0.30 percentage points to 2.30% and HSBC are to increase their Isa range up to 0.50 percentage points.

HSBC’s one year fixed rate saver will increase by 0.40 percentage points to 4.40% and the banks two year fixed rate will also rise by 0.35 percentage points to 4.45%.

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.”