HSBC to raise easy access rate among other savings changes

Its Online Bonus Saver is set to pay 4.00% AER on balances of £10,000 or less.

HSBC’s Online Bonus Saver, an easy access account, will increase its rate to 4.00% AER on Thursday. This comes after the high street bank announced it would be making several additional increases to its savings range next week.

“Our new savings rates will hopefully help encourage people to revisit their savings habits,” said Pella Frost, Head of Everyday Banking at HSBC.

The Online Bonus Saver does come with a caveat. Its rate of 4.00% AER only applies to balances up to £10,000. If balances were to exceed this figure then the rate will reduce.

Currently this sits at 2.00% AER, but from Thursday it will also increase to 2.30% AER.

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, labelled the latest increase to the Online Bonus Saver as “competitive in the present market”.

As at the time of writing, the Online Bonus Saver would offer the second-best rate on the market. Hanley Economic BS currently holds top spot with an account which tracks the Bank of England base rate. 

However, this account doesn’t facilitate internet banking. 

In addition to the Online Bonus Saver, HSBC will also make a range of changes to its other savings accounts.

Springall made a particular note of the increase to its My Children’s Savings Account, saying it was one of the best in the sector.

On Thursday this account will up its rate to 5.00% AER, making it the best variable rate for children on the market.

Besides this increase, HSBC will also be making changes to its fixed bonds and ISA range.