HSBC has bucked the usual high street bank trend of offering some of the worst rates available to savers, by launching a range of fixed rate bonds which sit head and shoulders above their peers – although still quite some way off qualifying for our best buy tables.
The new HSBC one-year Fixed Rate Saver is paying 1.60% gross/AER with a minimum of £2,000, up from its previous issue which was paying 0.65% or 0.75% on balances of £50,000 or above.
The two-year Fixed Rate Saver is paying 1.80% gross/AER, up from 0.80%.
And the three-year Fixed Rate Saver is paying 2% gross/AER, up from 0.85%
Compare these rates to its high street peers.
Santander is paying a pathetic 0.50% on balances of £500 up to £2 million. If you are a 1|2|3, World or Select customer, a slightly improved but still uncompetitive 0.70% can be achieved.
Barclays pays 0.70% for 12 months and 0.90% for two years.
NatWest isn’t much better, paying 0.80% on balances of up to £50,000 and 0.90% on higher balances on its one year bond.
Even Nationwide Building Society pales into insignificance, paying a one year rate of 0.80% gross/AER.
Fixed rate bond rates have been on the increase over the last few years and the average one year fixed rate bond is currently at a three year high of 1.39%.
It’s great to see a high street provider offering savers an account paying more than the average – which is not something that we are used to seeing.
Of course, for those who are happy to take a well-informed leap of faith, far better rates of up to 2.10% can be found with Gatehouse Bank – a lesser-known Sharia provider. But funds deposited with Gatehouse Bank are fully protected by the Financial Services Compensation Scheme (up to £85,000 per person)
As this account is also offered via Raisin UK*, for those who haven’t yet got an account with Raisin, a welcome bonus of up to £100 is up for grabs, which pushes a market-leading rate higher still.
For more information about Raisin UK and the bonds available via this Platform, take a look at our article.
And of course, if you are looking for more alternatives, the current top rates for all types of savings account can be found in our independent best buy tables.
The key point is to not settle for poor returns. By being active with your cash, you can achieve a better rate and make your savings work harder for you.
If you need any help with finding the accounts that are most suitable for your needs, please call us on 0800 011 9705 to speak to one of our expert savings specialists.
*We are occasionally paid by some providers if you click through from our Best Buy Tables and open a savings or current account with them. We will never accept a payment that compromises in any way our independent, whole of market approach to providing information on savings products. For clarity we will indicate those companies who remunerate us with an asterisk (*).
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