Are things looking up for savers? HSBC Holdings PLC (LSE:HSBA) is boosting rates on a number of its savings accounts just as two smaller players make their plays for customer's hard-earned cash.
HSBC said it is increasing the interest rates on some savings accounts by up to 0.75 percentage points raising hopes that the big players on the high street may be finally be set to reward savers.
The rises by HSBC will come into effect next week, on June 8, and include a 0.75 percentage point increase on the bank’s mysavings and premier savings youth accounts, taking rates to 5.00%.
Saver instant access account, for balances up to £10,000, will rise by 0.50 percentage points to 4.00% with the ISA rates also on the up.
Pella Frost, HSBC UK’s head of everyday banking, said: “We know that having a savings habit helps build financial resilience and means that you’re better placed to handle any disruption.”
The increases come as Saffron Building Society launched a ‘market-leading’ savings account shortly after Skipton Building Society announced a bumper savings rate of 7.5% on its regular saver account.
Saffron’s 9% rate is only available to people who have been members of the Essex-based institution for a year or more but is significant, being above the current rate of inflation.
Twelve interest rate rises by the Bank of England have spelled pain for millions of people with existing mortgages and those looking to take one out, and the criticism has been that on the flipside savers haven’t seen any of the benefit.
Earlier this year, MPs criticised bank bosses over their low savings rates, particularly on instant access accounts, saying that they seemed to be “taking advantage” of loyal customers.
Perhaps the big high street lenders are starting to play ball.