UK interest rates: Huge boost for savers as HSBC announces changes from next week
HSBC savers are set to receive a boost next week after the bank announced an increase on their interest rates
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HSBC savers are set to receive a boost next week after the bank announced an increase on their interest rates.
The uplift of 0.75 per cent will come into affect for some savings accounts on Thursday June 8.
The increase will be made to the bank’s mysavings and premier savings youth accounts, taking rates to 5.00 per cent.
The rate on HSBC’s online bonus saver instant access account, for balances up to £10,000, will rise by 0.50 per cent to 4.00 per cent.
The uplift of 0.75 per cent will come into affect for some savings accounts on Thursday June 8
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The rate on balances over £10,000 will increase by 0.30 percentage points to 2.30 per cent.
The bank is also making increases of up to 0.50 per cent on its Isa range.
In addition, its one-year, fixed-rate saver will rise by 0.40 per cent to 4.40 per cent, with a two-year, fixed-rate saver being boosted by 0.35 percentage points to 4.45 per cent.
Pella Frost, HSBC UK’s head of everyday banking, said: “We know that having a savings habit helps build financial resilience and means that you’re better placed to handle any disruption.”
On Thursday, First Direct also announced savings rate surges that will also take place from June 8.
Concerns have previously been raised about some longstanding savers stuck on low rates as the Bank of England base rate rises - causing people to switch if they are sitting on a poor deal.
Figures from the Bank of England which were released this week show that Isa savings received a record £9billion boost in April, as the new tax year got under way.
This could be due to savers being attracted by improving rates, wanting to shelter more of their money from being taxed and the need to save more money at a time of economic uncertainty.
Concerns have previously been raised about some longstanding savers stuck on low rates as the Bank of England base rate rises
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Rachel Springall, a finance expert at Moneyfactscompare.co.uk said: “HSBC’s rate increases will be welcome news for their loyal customers, and the new rates across easy access, regular savings are competitive in the present market.
"The mysavings children’s account will pay 5 per cent, one of the best returns in its sector.
“As a whole, the savings market has been blessed by rate increases thanks to a combination of the Bank of England rate rises and competition.
“Away from the biggest banking brands, challenger banks continue to jostle for table-topping positions to entice savers’ deposits, so it’s wise to keep a close eye on the moving market."