HSBC to more than double its easy access rate

Even with the increase the Online Bonus Saver still does not make the top 10 rates on our current chart.

High street bank HSBC will more than double the rate on its Online Bonus Saver next Tuesday, taking its rate for balances of £10,000 or under to 1.30%.

“While our savings products are not directly linked to the Bank of England Base Rate, we take this into account alongside a number of other factors when setting our interest rates,” said Tom Wolfenden, Head of Retail at HSBC UK.

Currently, the Online Bonus Saver pays a monthly rate of 0.45% for balances of £10,000 or less. Anything greater and this rate falls to 0.40%.

With the proposed increases, funds of £10,000 or more will be paid at a rate of 0.55%.

“Increasing the rate on our Online Bonus Saver will allow savers to receive a great rate of return as they build up their savings pot and get into a positive savings habit by rewarding them with a bonus rate in the months they don’t make a withdrawal,” said Wolfenden.

This is a crucial part of the Online Bonus Saver. Currently, savers who withdraw from this account will see their rate drop to 0.10%.

HSBC is yet to confirm whether this rate will also increase next Tuesday.  

While HSBC’s new rate is a significant improvement, it still does not offer one of the top 10 easy access rates on the market.

This is currently topped by Virgin Money with its selection of M Plus Saver, Club M Saver and M Saver accounts. Furthermore, these accounts allow their users to have unlimited access to their funds without reducing their rate of 1.56%.

In fact, there are 22 different offers without opening restrictions which currently better HSBC’s rate of 1.30%.

To help encourage children to start saving, HSBC will also increase the rate on its MySavings account to 3.25% on Tuesday.

“We also know that it’s important for young people to develop positive saving habits from an early age. Increasing the rate on our youth accounts will help young people grow their savings as they take their first steps in managing money,” said Wolfenden.

This interest is only available on balances of £3,000 or less. Children will also require a parent or guardian to accompany them when opening this account and when making withdrawals of £50 or over.

In addition, HSBC will also increase the rate on a range of its on sale products by 0.10%.