HSBC Set to Withdraw 5.7% One-Year Bond

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Banks Withdraw Top Savings Account Deals as Rates Could Fall

As banks and building societies raise their savings rates in recent months, some of the best savings accounts are being withdrawn, and others are facing rate cuts. For example, HSBC is set to withdraw its competitive one-year fixed-rate savings account, which was increased to 5.7%, on October 18. This move follows NS&I’s withdrawal of its one-year savings bonds paying 6.2%. Savers are encouraged to act swiftly to secure top rates amid concerns of potential interest rate cuts next year.

The HSBC Fixed Rate Saver requires a minimum deposit of £2,000 and is available to HSBC customers with a current or savings account, including children aged 7 and over. The account offers a fixed interest rate, and withdrawals are not permitted, although early closure is possible for a fee. While the 5.7% rate is competitive, some challenger banks offer higher rates.

Challenger banks, such as Al Rayan Bank, Ahli United Bank, Habib Bank Zurich, LHV Bank, and SmartSave, are providing rates above 6%. Ford Money’s 1-Year Fixed Saver offers a rate of 5.95% for deposits up to £2 million. However, HSBC’s account remains an attractive option for current customers seeking a convenient and straightforward savings account, especially those who prefer in-person banking.

The HSBC Fixed Rate Saver is suitable for individuals looking for a one-year savings account for children aged 7 or older. It can be opened and managed online or in-branch, providing flexibility for customers who prefer both digital and in-person banking services.