HSBC current account customer? You can now get 3% ‘easy-access’ on your savings – though you can earn more elsewhere
HSBC has upped the rate of its Online Bonus easy-access savings account to 3%, beating the top market rates. You'll need to have (or get) an HSBC current or savings account, however, and the rate is significantly dented if you withdraw money. Here’s how it compares.
If you are looking to shore up your savings against sky-high inflation, see our Top savings accounts guide for the best buys, including up to 2.75% easy access and up to 5.05% fixed.
How HSBC's Online Bonus account works
The Online Bonus savings account is an easy-access account, so you can withdraw funds whenever you like. You must have (or get) a current or savings account with HSBC to open it and you can start saving from just £1. This account can only be opened online, but can also be managed in branch, via phone or on HSBC's app. So you could just open a bog standard easy-access account with £1, then get the Online Bonus account through online banking.
The headline rate of 3% may look attractive, and while the account does allow you access to your money whenever you want, the interest rate falls to 0.5% for the month in which you make a withdrawal. So you'll only get 3% during the months where you do NOT make a withdrawal.
The account has no maximum deposit limit, but you will only get up to 3% on up to £10,000. You'll earn 0.75% on savings above £10,000 in months where you DON'T withdraw, or 0.5% in months where you DO withdraw.
Should I take out this HSBC account?
- If you don't withdraw, the rate beats the top open-to-all easy-access accounts on the market. This could work for you if you know you won't need to withdraw your savings much, but don't want to lock your money away in a fixed term account. It's also HSBC's top easy-access account, so if you are an existing customer, and don’t want to switch – this could be a good option to earn at least some interest on your savings.
- However, you’ll only get the headline 3% on months where you don’t withdraw AND only on up to £10,000. If you want to save a much higher amount or plan to withdraw more than once or twice a year, you'll lose some of the benefits of the bonus and the account will be much less competitive versus alternatives in the long run.
- Top easy-access accounts typically offer competitive rates on much higher amounts. Sainsbury’s Bank, for example, currently offers 2.75% on up to £500,000. Some (though not all) also offer no penalties or restrictions on withdrawals, such as Tesco Bank's 2.21% account, which allows you to move money in and out with no hit to the interest.
Other 'existing customer' accounts pay more
HSBC is the latest bank to offer a savings account exclusively for its customers offering more attractive rates.
- Barclays' Rainy Day Saver offering the top rate of 5.12% on up to £5,000 for Blue Rewards member
- Nationwide's FlexDirect pays 5% on up to £1,500 for current account holders.
- Chase's bank account pays 2.1% on its linked saver, up to £250,000
- Virgin Money's M Plus pays 2.02% on its linked saver, up to £25,000.