HSBC has raised the interest rates on two of its Fixed Rate Saver accounts, allowing customers to earn up to 4.4% AER on money they can lock away for up to two years.
New rates and account details
The one-year Fixed Rate Saver now pays 3.8% AER, up from 3.7%, while the two-year account has increased from 4% to 4.4% AER. The accounts require a one-off deposit between £2,000 and £1 million, with the rate fixed for the full term.
Interest can be paid monthly or annually, directly into the HSBC account used for the initial deposit. Customers can close the account early if needed, though an early withdrawal fee may apply.
Potential earnings for savers
Based on simple interest paid annually without compounding, a £10,000 deposit into the two-year account would earn around £896 over two years, while £20,000 would earn approximately £1,792.
The rate increase comes as households consider where to keep savings and whether to fix their money for a set period.
HSBC's statement
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.”
Considerations before fixing
Savers should review their circumstances before committing, as fixed-rate accounts may offer certainty but less accessibility than easy-access accounts. Checking terms and conditions for withdrawal penalties is also advised.
