HSBC is increasing its rates on several savings accounts, including its instant access, ISA and children’s savings offerings.
The rates boost includes 0.25 percent on its instant access accounts, with the rate on the Premier Savings increasing to 2.25 percent while the Flexible Save will pay two percent.
Customers with the Online Bonus Saver will also see their rates increase 0.25 percent, increasing to two percent.
This follows the limit for the higher paying tier for this account being increased from £10,000 to £50,000. Balances over £50,000 get an interest rate of 2.3 percent.
The bank has also upped its rates on the MySavings childrens’ account for balances over £3,000, which will get a rate of 2.25 percent. Balances under £3,000 have a rate of 5.00 percent.
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Pella Frost, HSBC UK’s head of Everyday Banking, said: “The challenges brought about by the increased cost of living mean that people want to make sure their money is working harder for them.
“We are supporting our customers to make the most of their money in a number of ways, such as increasing the interest rate across our range of savings accounts, including on instant access accounts, but also by encouraging our customers to review their savings arrangements.
“It’s important that customers regularly review their accounts as their finances or financial goals may have changed significantly in recent years, and there may be better accounts or better rates now available to them.”
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Here is the full list of the affected accounts with their new rates:
Instant Access
Premier Savings – £1+ – 2.25 percent
Flexible Saver – £1+ – Two percent
Bonus Savings
Online Bonus Saver
Bonus: Higher Band – Four percent (unchanged)
Bonus: Lower Band – 2.3 percent (unchanged)
Excluding Bonus – Two percent
ISA
Loyalty Cash ISA
Standard Rate – 2.5 percent
Other Loyalty – 2.85 percent
Premier Loyalty – 3.2 percent (unchanged)
Youth
MySavings – more than £3,000 – 2.25 percent
Premium My Savings – less than £3,000 – Five percent (unchanged).
Many banks and building societies will likely increase their rates over the coming weeks as the base interest rate has increased again.
The Bank of England increased the base rate from five percent to 5.25 percent yesterday in its work to bring down inflation.
The rate of inflation has been falling in recent months with the figure dropping to 7.9 percent in June.
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