HSBC UK has announced it is increasing the interest rate on one of its fixed rate savings accounts.
The One Year Fixed Rate Saver account has increased by 0.65 percentage points to a special rate of 5.70 per cent AER.
The Fixed Rate Saver is available with a minimum deposit of £2,000 and a maximum of £1,000,000.
Savers can apply online or in an HSBC UK branch.
HSBC UK said customers must apply by the end of October 18 to get the rate
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To get this rate, customers must submit their application by 11.59pm on Wednesday October 18.
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.
“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 per cent 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.”
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 previous 5.05 per cent AER rate would be £2,101.
Under the increased interest rate of 5.70 per cent AER, this would now be £2,114.
LATEST DEVELOPMENTS:
Yorkshire Building Society increased the interest rate on one of its savings accounts and launched a new option yesterday
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At the other end of the scale, if £1,000,000 was deposited, the interest would be £1,050,500.
If the money was deposited following the interest rate rise, it would be £1,057,000.
Yorkshire Building Society yesterday launched a new savings account and also improved the interest rate on another savings option.
Their Loyalty Six Access Saver will now pay a variable interest rate of 5.10 per cent.
Meanwhile, the Internet Saver Plus Issue 13 rate has increased to 4.80 per cent.
