Following the Bank of England‘s 13th successive Base Rate hike, high street banks and building societies have been offering increasingly competitive rates.
Following an increase in its Savings rates on Friday June 30, HSBC UK can confirm additional rate changes to Fixed Rate Savers and ISAs, with increases of up to 0.65 percent.
These changes take place as the bank continues to proactively nudge its savers to review their accounts and highlight other saving options within the bank which might “provide greater returns” for them based on their savings account usage.
The rate changes will come into effect on Friday, July 7. There has been a 0.65 percent increase on Fixed Rate Saver accounts taking accounts to over five percent:
· One-year Fixed Rate Saver increased to 5.05 percent
· Two-year Fixed Rate Saver now 5.10 percent.
This increase could add hundreds of pounds in interest for customers.
With the Fixed Rate Saver, Britons can deposit between £2,000 and £1 million to earn interest at a fixed rate.
To open an account, a customer must be aged seven or over and already have a HSBC current account or savings account (excluding an ISA, Regular Savings Account or Basic Bank Account) which must be maintained for the duration of the fixed term.
Once opened, the account can be managed via online banking or the HSBC Mobile Banking app, as well as via telephone banking and in a branch.
There has been a 0.50 percent increase to 3.50 percent on balances held in Help To Buy ISAs (up to £12,000).
A 0.40 percent increase has been added to balances over £12,000 with a new rate of 1.75 percent.
A 0.20 percent has been added to other ISAs, increasing Premier Loyalty ISA to 3.20 percent, and Advance Loyalty ISA to 2.70 percent.
With the Loyalty Cash ISA, Britons can start with any amount from £1 and deposit up to £20,000 this tax year.
Applicants must be aged 16 years or over and be resident in the UK. The account can be opened in an account via online banking, in branch or by phone.
As mentioned above, HSBC has just recently announced further increases to savings accounts on Friday, June 30.
The changes that came into effect last Friday included:
- Online Bonus Saver 4.00 percent tier increasing to £50,000 for the higher rate, which increases the rate from £10,000 to £50,000 by 1.70 percent from 2.30 percent potentially adding £680 in annual interest to account holders.
- An increase of 0.40 percent to 1.75 percent on all non-bonus rate balances on the Online Bonus Saver account, where a withdrawal has been made in that particular month. Balances over £50,000 continue to receive 2.30 percent when there’s no withdrawal in that month
- A 0.40 percent increase on instant access Premier Savings (up to two percent) and Flexible Saver (up to 1.75 percent)
For more information, people can visit the HSBC website.
Source: Expressnews.co.uk