The change affects both versions of the savings product. According to the Mirror, the one-year Fixed Rate Saver now pays 3.8% AER, while the two-year option pays 4.4% AER. The rates remain fixed for the full term selected by the customer. The account is designed for people who have money they do not expect to need immediately. Customers make a single deposit when opening the account and can then choose whether the interest they earn is paid monthly or annually.
HSBC said the fixed structure is intended to give savers certainty over the amount of interest they will receive while their money remains set aside. Customers can still close the account before the agreed term ends, although an early withdrawal fee may apply.
HSBC Increases Both One-Year and Two-Year Savings Rates
The one-year Fixed Rate Saver rate has risen from 3.7% AER to 3.8% AER. The larger change applies to the two-year version, which has moved from 4% AER to 4.4% AER. According to the Mirror, customers can place between £2,000 and £1 million into the account through a one-off deposit. The interest rate then remains unchanged for the selected one-year or two-year period, meaning the return does not move during that term.
Interest can be paid either monthly or annually. Those payments are made directly into the HSBC account that the customer used to fund the Fixed Rate Saver in the first place. HSBC said the rate increase comes as savers continue to consider how to earn a return on money they do not immediately need, while also weighing the benefit of a guaranteed rate against access to their cash.
The bank allows early closure if a customer needs the money before the fixed term is completed. That flexibility comes with a condition, since an early withdrawal fee may be charged when the account is closed ahead of schedule.
HSBC Says Fixed Rates Provide Certainty for Savers
Lloyd Robson, head of savings at HSBC UK, said customers have different reasons for setting money aside and that the bank offers several types of savings accounts for different circumstances.
“Whether you’re building up a savings pot for a future goal or simply have money you don’t need immediate access to, it’s important to make sure your savings are working as hard as they can,” Robson said.
According to the Mirror, Robson also said the Fixed Rate Saver lets customers secure a guaranteed rate for one or two years, giving them certainty about the return they will receive while the money remains deposited. “With our Fixed Rate Saver, customers can lock in a guaranteed rate for one or two years, giving them certainty over the return they’ll receive while their money is set aside,” he said.
The revised rates apply from August 14. Eligible HSBC customers choosing the account can therefore receive 3.8% AER for a one-year term or 4.4% AER for a two-year term, subject to the account’s deposit and early-closure conditions.
