The Bank of England’s base rate influences what banks and lenders charge you to borrow money, but it also dictates how much banks will pay you in interest on your savings
HSBC customers have been told to “review” their savings as the bank is making a huge change to eight bank accounts within weeks. The high street bank is slashing interest rates across eight of its popular saving accounts from June.
The move is a blow to savers as they will be making less money on their cash pots. The cut to interest rates comes as the Bank of England slashed its base rate by 0.25 percentage points to 4.25% earlier this month.
The Bank of England’s base rate influences what banks and lenders charge you to borrow money, but it also dictates how much banks will pay you in interest on your savings. When the base rate is higher, the banks will pay you more. When the base rate drops, the banks will pay you less. On the day, savers were warned about the impact the move would have on them.
HSBC is cutting rates across a range of its savings accounts from June 3, including its Help to Buy ISA and its Loyalty Cash ISA. From July 21, the high street bank will be cutting rates on even more accounts including its Online Bonus Saver, Flexible Saver,
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On the cuts, a HSBC spokesperson said it was “firmly focused” on supporting its banking customers with their savings.
They said: “We provide overall value on our savings accounts that goes beyond interest rates to provide flexibility, convenience, simplicity and organisational and financial stability for customers who want to save with a trusted high street brand.
“There are several factors taken into account when setting savings rates. We have designed our savings accounts to make it easy for our customers to start and maintain a savings habit so they can save towards longer term goals.”
HSBC said it “proactively” reminded customers of the need to “review” their cash pots and would advise them on what products are best suited for them.
Full list of HSBC savings accounts changing
- Online Bonus Saver (balances between £1 and £50,000) – Going from 4.00% to 3.75%
- Online Bonus Saver (balances over £50,000) – Going from 1.50% to 1.30%
- Flexible Saver – Going from 1.35% to 1.30%
- HSBC Premier Savings (balances below £50,000) – Going from 1.50% to 1.35%
- HSBC Premier Savings (balances between £50,000 and £100,000) – Going from 1.60% to 1.45%
- HSBC Loyalty Cash ISA (loyalty Premier rate) – Going from 2.75% to 2.50%
- HSBC Loyalty Cash ISA (standard Premier rate) – Going from 2.15% to 2.10%
- HSBC Loyalty Cash ISA (loyalty non-Premier rate) – Going from 2.35% to 2.30%
- HSBC Loyalty Cash ISA (standard non-Premier rate) – Going from 2.15% to 2.10%
- MySavings (balances up to £3,000) – Going from 5.00% to 4.50%
- MySavings (balances over £3,000)- Going from 1.50% to 1.35%
- HSBC Premier MySavings (balances up to £3,000) – Going from 5.00% to 4.50%
- HSBC Premier MySavings (balances over £3,000) – Going from 1.50% to 1.35%
- Future Saver for children – Going from 1.50% to 1.35%
- Help to Buy: ISA (balances over £12,000) – Going from 1.35% to 1.30%
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