HSBC savings account: Rates, features and an alternative way to make your money work

If you’ve worked hard to put aside some money for a rainy day, you’ll want to make sure you get the most from your savings pot. To help your money grow, you’ll need to start shopping around for a great savings account.

One of the options on the table is HSBC. In this guide, we’ll run through everything you need to know about HSBC savings accounts, including account types, interest rates and how to get started.

Want to earn a return in multiple currencies? With Wise Interest, you can get a 4.82% variable rate on your GBP balance held in your Wise multi-currency account.

Capital at risk. Current rates do not guarantee future growth.

Variable rate is based on 7 day performance as of 10 Aug 2023. This fund has returned an 0.93% annual average over the last 5 years, excluding Wise and fund manager fees. See full 5 year past performance of funds.

What is a savings account?

In the UK, a savings account with a bank or building society is a secure place to put your money so that it increases in value. This is due to interest, which is paid on a fixed or variable rate (depending on the type of account).

People open savings accounts for a number of reasons. They may be saving for a particular goal, such as to buy a house or pay for a dream holiday. Or they may simply want their surplus income to work harder for them.

There are lots of different types of savings accounts to choose from. These include:

• Regular savers, where you commit to deposit a certain amount of money each month.
• Cash ISAs, which generate interest tax-free up to a certain annual allowance.
• Easy access savings accounts, which give you instant access to your money whenever you need it.
• Notice accounts, where you need to provide notice of a withdrawal.
• Fixed-rate accounts, which generally offer higher rates of interest in return for ‘locking away’ your money for a fixed period.

How do savings accounts work?

When you put money into a savings account, the bank or building society usually lend it to other people or businesses, or invest your money and keep the returns for themselves. They pay you interest for this. But often this interest is less than inflation, so in real terms your money might not gain value.

Savings accounts with UK banks and building societies are protected by the government’s Financial Services Compensation Scheme (FSCS). This scheme protects savings up to £85,000 (£170,000 for joint accounts) just in case the bank goes into administration¹.

Types of HSBC savings accounts²

What HSBC has to offer in terms of personal savings accounts:

HSBC Regular Saver

A regular savings account for HSBC current account customers which offers a fixed interest rate for 12 months, on balances up to £3,000.

You can open this account with just a £25 deposit, and will need to deposit between £25 and £250 a month to earn the interest. No withdrawals are permitted during the 12-month period, unless you’re closing the account.

HSBC Fixed Rate Saver

A savings account for either 1 or 2 years, offering a fixed rate of interest on balances between £2,000 and £1 million. You can withdraw money if your balance is less than £50,000, but fees may apply. This account is for existing HSBC current or savings account customers.

HSBC Loyalty Cash ISA

A flexible cash ISA offering tax-free interest to HSBC current account customers, with a higher rate for HSBC Premier Account holders. You can open this instant access account with just a £1 deposit, and receive a loyalty rate on your savings for 12 months from the date of each deposit.

HSBC Online Bonus Saver

An instant access savings account for existing HSBC customers which is exclusively opened and managed online. You can open an HSBC Online Bonus Saver with just a £1 deposit, and you’ll earn a higher rate interest in months where you don’t make any withdrawals.

HSBC Premier Savings

A savings account exclusively for HSBC Premier Current Account holders, offering instant access to your money. You can open an account with just a £1 deposit, and can top it up with immediate transfers from your HSBC current account.

HSBC Flexible Saver

A simple instant access saver available to all customers, which can be opened online, on the phone or in branch with just a £1 deposit.

HSBC MySavings/Premier MySavings

A dedicated savings account for young people, aged 7 to 17 years old. This instant access account can be opened with a minimum deposit of £10, and allows cash withdrawals at HSBC branches. Once you reach your 11th birthday, you’ll receive an HSBC Visa debit card so money can be withdrawn at ATMs too.

HSBC savings accounts interest rates

Here’s an overview of the interest rates on offer with each of HSBC’s savings accounts:

Account	Interest rate²
HSBC Regular Saver	1.00% AER/gross
HSBC Fixed Rate Saver	0.25% - 0.30% AER/gross
HSBC Loyalty Cash ISA	0.25% AER (tax free) - HSBC Premier Account holders0.20% AER (tax free) - all other HSBC customers
HSBC Online Bonus Saver	0.25% AER/gross on up to £10,000 - for months without withdrawals0.10% AER/gross - for months with withdrawals
HSBC Premier Savings	0.10% AER/gross
HSBC Flexible Saver	0.10% AER/gross
HSBC MySavings / Premier MySavings	2.75% AER / 2.72% gross - on balances up to £3,0000.50% AER / gross - on balances over £3,000

How to open a savings account with HSBC

If you like the look of one of HSBC’s savings accounts, the first thing to do is check whether it can be opened online, over the phone or in an HSBC branch. Some, such as the HSBC Online Bonus Saver, can only be opened online.

To be eligible for most HSBC savings accounts, you’ll need to first open an HSBC current account. The exception is the HSBC Flexible Saver, which can be opened by anyone.

Once your current account is open, you should be able to apply for a savings account in just a few minutes by logging into online banking³. If you have any problems or aren’t an existing customer, you can head to your local HSBC branch for assistance.

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Sources used for this article:

1. FSCS - protection
2. HSBC - savings accounts
3. HSBC - flexible saver

Sources checked on 11-03-2022.