HSBC UK increases interest rates as bank unveils changes across savings accounts

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HSBC UK is increasing the interest rates on some of its variable rate savings accounts by up to 0.85 percent. The news follows the Bank of England interest rate rise by a further 0.25 percent last month.

The Online Bonus Saver will see its bonus rate increase by 0.85 percent to 1.30 percent (from 0.45 percent) on balances up to £10,000

To encourage saving from an early age, HSBC UK’s youth savings accounts will also increase by up to 0.25 percent, taking the MySavings account to 3.25 percent AER.

Rate  changes will also be implemented on Premier Savings, Flexible Saver (+0.10), the bank’s Cash ISA range (+0.10), Help to Buy:ISA (+0.25) and Fixed Rate Saver (+0.10 percent).

Tom Wolfenden, HSBC UK’s Head Of Retail, said: “While our savings products are not directly linked to the Bank of England Base Rate, we take this into account alongside a number of other factors when setting our interest rates.”

“We have raised our interest rates across a number of our accounts in order to offer greater value for savers.

 “Increasing the rate on our Online Bonus Saver will allow savers to receive a great rate of return as they build up their savings pot and get in to a positive savings habit by rewarding them with a bonus rate in the months they don’t make a withdrawal.

 “We also know that it’s important for young people to develop positive saving habits from an early age. Increasing the rate on our youth accounts will help young people grow their savings as they take their first steps in managing money.”

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