HSBC to make huge change to eight bank accounts used by millions of customers in weeks
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HSBC is making a major change to eight of its bank accounts within weeks.
The bank and lender is slashing interest rates on a number of its savings accounts from June 3.
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It comes after the Bank of England (BoE) reduced its base rate from 4.5% to 4.25% this month - the fourth cut since 2020.
The base rate is charged to smaller high street banks and any falls are usually echoed in savings rates.
HSBC is reacting to the base rate change by dropping rates on eight of its savings accounts, but the drops come into effect on different dates.
The interest rate on its Online Bonus Saver is being cut on July 21 from 4% AER to 3.75%, for balances between £1 - £50,000.
Meanwhile, anyone with the same account and a balance over £50,000 will see the rate cut from 1.5% to 1.3% on the same date.
The interest rate on the bank's Flexible Saver is also being cut from 1.35% to 1.3% from July 21.
Anyone with a Help to Buy ISA and balance over £12,000 will see their interest rate reduced from 1.35% to 1.30% from June 3.
HSBC non-Premier customers will see the interest rate on the Loyalty Cash ISA cut (standard rate) from 2.15% to 2.10% from June 3.
Meanwhile, the rate on the same ISA (loyalty rate) for non-Premier HSBC customers will drop from 2.35% to 2.30% on the same date.
The full list of affected accounts and the new rates coming into force can be seen via: www.hsbc/savings/interest-rates.
Switch bank accounts for free perks
A spokesperson for HSBC said it was "firmly focused on supporting customers with their savings".
They added: "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.
"We also proactively remind customers of the need to review their savings, highlighting products that might also be suitable for them and where they could benefit from a higher rate."
MAJOR BANKS CUTTING RATES
HSBC joins NatWest and Nationwide in cutting rates on its savings accounts as the BoE continues to slash its base rate.
Nationwide is cutting interest rates on over 60 savings accounts from June 1 including a number of ISAs and easy access accounts.
NatWest is also cutting rates on a number of accounts from the end of this month.
Meanwhile, The Sun exclusively revealed how Virgin Money is lowering the interest rate on its M Plus Saver account next month.
If you've got a savings account with an interest rate set to drop, it might be worth shopping around for a better deal now.
Check out comparison sites like moneysavingexpert.com and moneyfactscompare.co.uk to browse the best on the market.
According to Moneyfacts, Chip is offering the best rate on an easy access savings account, with a rate of 4.77%.
Meanwhile, the best easy access cash ISA is with Trading 212 and offering a rate of 4.86%.
Always look beyond just the headline interest rate on any savings account though.
Some offer additional perks which can make them more cost-effective and suited to you, based on your circumstances.
For example, the Club Lloyds Silver account comes with a £11.50 monthly fee and extra £3 monthly Club Lloyds fee that's waived every time you pay in £2,000 or more in each month.
However, the account comes with AA breakdown cover, European and UK family travel insurance and mobile phone insurance.
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