HSBC UK offers increased interest rate on savings account but deal ends soon

HSBC UK has today reminded savers that the time-limited rate of 5.70 percent being offered on its One Year Fixed Rate Saver will end next week.

Savers can set up the account with a minimum deposit of £2,000.

They can get 5.70 percent interest on balances up to £1,000,000.

Britons can apply online or in an HSBC UK branch before the deadline to get the special rate.

HSBC UK has illustrated how much a person could earn in interest after the change, assuming after the initial deposit there is no further deposits and no withdrawals during the fixed term.

If the initial deposit was £2,000, calculations show the balance at the end of the term under the increased interest rate of 5.70 percent AER, this would now be £2,114.

HSBC UK carried out some research which found the typical Briton has more than £12,000 in savings, but women have £3,000 less than men.

Three in ten (31 percent) of all savers never move their money to accounts with higher interest rates – despite the rising figures meaning they are missing out on extra cash.

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As the deadline approaches, Britons are urged to consider switching their money over to an account earning higher interest.

As the base rate remains at 5.25 percent, many savings accounts are offering if not the same on interest, but more.

Despite being less than the inflation rate, Britons can save some cash by keeping cash in a high-interest account.

Pella Frost, HSBC UK’s Head of Everyday Banking, said: “Energy bills, filling up your car and your weekly supermarket shop may not be quite as high as they have been in recent times, but the increase in the cost of living has really shone a light on the importance of having a bit of a financial safety net for life’s unexpected twists and turns.

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A savings pot helps with financial resilience and helps shield from immediate financial stress and it can provide important peace of mind to help with either unforeseen expenses or longer-term goals. We would encourage a combination of accounts for different situations – an easy-access account for emergencies and some money in longer-term accounts for longer terms financial goals which typically provide more of a return.

“We have increased the interest on savings accounts regularly in the last year and are increasing our one-year Fixed Rate Saver, providing a significantly increased special rate of 5.70 percent AER for those who are happy to tie their money up for a year, potentially providing hundreds or thousands of pounds more in interest than they would get with the standard rate.”

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