HSBC increases rates for savers by the full 0.25 per cent

HSBC continues to dominate the online savings market with a further increase to its popular Online Saver offer, up 0.25 per cent to 6 per cent, following the Monetary Policy Committee’s May base rate rise.

The new rate takes effect on 4 June.

From June, HSBC’s 6 per cent Online Saver offer will feature:

one of the highest rates of interest available online;

a minimum opening balance of £1;

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

interest 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 the interest as income.

In line with the base rate rise in May, the bank will also increase rates on all of its variable savings accounts (standard Online Saver, Flexible Saver, Instant Access Saver, Cash Mini ISA, Premier Savings and children’s savings accounts) by the full 0.25 per cent, effective 4 June 2007.

HSBC’s fixed rate bonds, and 8 and 10 per cent Regular Saver accounts will remain unchanged.