HSBC UK has increased the interest rates on its Fixed Rate Saver, with changes taking effect from today. The one-year rate rises to 3.8% AER, while the two-year rate increases to 4.4% AER, the bank confirmed on Friday.
Rate details and deposit limits
The Fixed Rate Saver allows eligible customers to deposit between £2,000 and £1 million in a one-off payment, with the interest rate fixed for the chosen term of one or two years. Interest can be paid monthly or annually into the HSBC account used for the initial deposit.
Customers can close the account early if needed, though an early withdrawal fee may apply, the bank added.
Bank's statement on rate increase
HSBC said the account was designed for customers who did not need immediate access to their money, giving savers certainty over the interest they will earn over the term. The bank stated: "The rate increase comes as savers continue to look for ways to make their money work harder, while balancing the benefits of locking in a guaranteed return with the need for access to their cash."
Key features and official comment
The one-year rate has risen from 3.7% AER, and the two-year rate from 4% AER. Lloyd Robson, head of savings at HSBC UK, said: "Everyone's savings needs are different, which is why we offer a range of savings accounts designed to suit various circumstances. Whether you're building up a savings pot for a future goal or simply have money you don't need immediate access to, it's important to make sure your savings are working as hard as they can."
He added: "With our Fixed Rate Saver, customers can lock in a guaranteed rate for one or two years, giving them certainty over the return they'll receive while their money is set aside. We're pleased to be increasing our rates, giving savers even more opportunity to make the most of their money."
