HSBC is offering 3.2 percent interest rate on bonus savings account | Personal Finance | Finance

The rising Bank of England Base Rate has come as better news for savers as high street bank products have typically been improving in line with it. HSBC is currently offering an instant access savings account with an Annual Equivalent Rate (AER) of 3.25 percent – and savers can get started with just £1.

Instant savings accounts have been growing in demand in recent months, as rapidly rising living costs have resulted in more Britons needing increasing and easier access to savings.

These accounts are typically quite simple to manage as they enable savers to make payments and withdrawals with minimal restrictions and small opening deposit requirements.

But while savers are granted instant access to their money with HSBC’s Online Bonus Saver, they’ll only be awarded the higher AER of 3.25 percent on the months that no withdrawals are made.

On the occasion that a withdrawal is made, a 1.2 percent standard rate will be applied to that month instead.

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The 3.25 percent rate also applies to savings up to £10,000, after which a slightly lower of 1.75 percent will be added to the rest.

Interest is calculated daily and credited to the account monthly, and there is no maximum balance.

To open the account, savers must be 16 or over, hold an HSBC current or savings account, and they must be able to manage their account online.

But while HSBC may be offering a particularly appealing interest rate, it isn’t currently topping the table.

Up to £250,000 can be invested overall and interest can be paid away or compounded.

Shawbrook Bank’s Easy Access (Issue 34) is currently offering an AER of 3.36 percent. The account can be opened with a minimum deposit of £1,000 and up to £85,000 can be invested.

Interest is calculated daily and paid on the anniversary of the first deposit, and withdrawals can be made at any time without penalty.