HSBC UK confirms savings rate increases

These changes will increase the return get customers get on their savings with HSBC UK, encouraging them to build a savings habit, and come as the bank shares some top tips for building financial resilience amid challenges caused by the increased cost of living.

The increases, which come into effect on 8^th June, include:

• 0.75% increase on the bank’s MySavings and Premier Savings youth accounts to 5.00%;
• 0.50% increase to 4.00% on HSBC’s Online Bonus Saver instant access account for balances up to £10k. Balances over £10k increase by 0.30% to 2.30%;
• Up to 0.50% increase on the bank’s ISA range, with Premier Loyalty ISA now at 3.00%;
• One Year Fixed Rate Saver increased by 0.40% to 4.40%, with Two Year Fixed Rate Saver increased by 0.35% to 4.45%
• These savings rates are complemented by the Regular Saver Accounts at 5.00%, which helps build a savings habit.

Pella Frost, HSBC UK’s Head of Everyday Banking, said: “Over the last few years we have had to learn to adjust to the unexpected and build our resilience. Change can have a significant impact on our lives, sometimes financially. We know that having a savings habit helps build financial resilience and means that you’re better placed to handle any disruption.

“Our new savings rates will hopefully help encourage people to revisit their savings habits. We know that eight in 10 people are taking action to tighten their belts and reduce their outgoings in the face of cost of living challenges, which is a great starting point to help build financial resilience.”

Top 5 strategies for improving financial resilience

1. Live within your means

To ‘live within your means’ is to spend less money than you have coming in. If your outgoings are exceeding your incomings on a regular basis, it’s a sign that something needs to change. Acting now can help you improve your finances quickly.

2. Keep on top of your finances

Smart money tools help you keep an eye on your spending and stay on top of your finances. For example, if you have the HSBC UK Mobile Banking app, you can use our Balance After Bills feature. It allows you to see how much you could have left for the month ahead, once scheduled bills (standing orders and Direct Debits) are taken into account.

3. Stick to a budget

Sticking to a budget is clearly a good way of maintaining resilience.

Knowing exactly how much money you have coming in and going out - as well as where it goes - can help you prioritise spending.

If your budgeting skills have lapsed, it’s okay - there are ways to get your finances back on track.

4. Reduce outgoings where possible

One of the key steps towards managing your money effectively is understanding the way you’re spending. If you feel you’re spending too much, look at what you can change.

There are ways you can reduce your spending without feeling like you’re missing out.

5. Make sure you’re getting value for money

You can save money by shopping around. One idea is to review all your Direct Debits once a year and look around for better deals.

Online comparison sites can be a good place to start. But look for quality - both product and service - to make sure you’re getting value for money, rather than just the cheapest price.

Media enquiries to:

Steve Gracey - Steve.gracey@hsbc.com | 020 7991 4118

Email: UKPressOffice@hsbc.co.uk