To encourage saving from an early age, HSBC UK’s youth savings accounts will increase by 0.25%, taking the MySavings account (which is designed to help 7 to 17 year olds develop financial literacy) to 2.75% AER/Gross.
The Bank’s Loyalty Cash ISA will see an increase of up to 0.20% with the Premier product increasing to 0.25% AER. The Loyalty rate for all other customers is going up by 0.18% to 0.20% AER, and the non-Loyalty rate is also increasing to 0.15% AER, all of which are free from tax.
The bonus rate on the HSBC UK Online Bonus Saver will increase from 0.05% to 0.25% AER/Gross on balances up to £10,000. With this account, the holder is rewarded with this bonus rate if they do not make a withdrawal from the account in that month. The bank’s other Instant Access savings accounts (Flexible Saver and Premier Savings), which provide ultimate flexibility for savers, will increase from 0.01% to 0.10%.
Tom Wolfenden, HSBC UK’s Head Of Retail, said: “While these products are not directly linked to the Bank of England Base Rate, we take it into account alongside a number of other factors when setting our interest rates.
“We have been operating in a low interest rate environment for some time, but we have tried to continue providing overall value on our savings accounts, which goes beyond interest rates and includes convenience, simplicity, and organisational and financial stability of the bank.”
“There are many different motivations for saving money. It could be to build an emergency fund should your car break down or washing machine need to be replaced, saving for a once-in-a-lifetime holiday, or using an easy access savings account as an additional budgeting tool.”
“One thing I think most people will agree on is the importance of encouraging a savings habit from a young age and we believe HSBC UK’s range provides a number of options to help our customers do just this.”
The bank’s mortgage Standard Variable Rates will also increase by 0.25%, with the residential rate moving to 3.79% and the Buy To Let SVR increasing to 4.85%.
The changes to savings accounts and mortgages will come into effect on 1st March.
Tom Wolfenden added: “HSBC’s mortgage rates remain some of the lowest on the market, including our Standard Variable Rate, maintaining our commitment to offer great value for all new and existing customers.”
Other personal borrowing, including overdrafts, personal loans and credit cards remain unchanged.
We will be writing to our customers, making them aware of any interest rate changes that affect them in line with their terms and conditions.
Note to editors:
About HSBC UK
HSBC UK serves around 15 million customers across the UK, supported by 25,500 colleagues. HSBC UK offers a complete range of retail banking and wealth management to personal and private banking customers, as well as commercial banking for small to medium businesses and large corporates.
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC serves customers worldwide from offices in 64 countries and territories in our geographical regions: Europe, Asia, North America, Latin America, the Middle East and North Africa. With assets of US$2,969 billion at 30 September 2021, HSBC is one of the world’s largest banking and financial services organisations.