HSBC heads to the top with 5.75 per cent online saver

HSBC is increasing the interest on its popular Online Saver to a whopping 5.75 per cent AER variable making it one of the highest paying online savings account on the market.

Available to new and existing customers who open an account from 5 February, HSBC’s 5.75 per cent Online Saver is designed to encourage and reward long-term savings by paying a single high rate of interest on the entire balance. And to make it easier to open an account, the bank has also recently reduced the minimum opening balance from £500 to £1, ensuring that customers earn interest from day one.

Paul Whitlock, head of savings at HSBC, said: “HSBC’s Online Saver is one of the highest paying savings accounts available. Unlike many other online savings accounts, customers can now open their account with just £1 and there are no ‘tiered’ rates, so they will earn the headline rate of 5.75 per cent on their entire balance from day one. Online savers will be hard-pressed to find a better place to stash their cash elsewhere on the market.”

From 5 February, HSBC’s new 5.75 per cent Online Saver will feature:

one of the highest rates of interest available anywhere on the high street or online;

a minimum opening balance of £1, recently reduced from £500;

no requirement to make regular deposits and a maximum balance of £50,000 - so customers can save at a pace that suits them;

interest that is calculated daily and paid monthly straight back into the customer’s Online Saver to boost savings, or into another HSBC account if they wish to use their interest as income.

HSBC’s existing savings customers will also benefit from the Monetary Policy Committee’s January base rate rise as the bank increases interest on its standard Online Saver (to 5.25 per cent AER variable), Flexible Saver, Instant Access Savings, Cash Mini ISA and children’s savings accounts by the full 0.25 per cent, effective 5 February 2007.