Many banks and building societies have been upping interest rates on savings accounts month-on-month, offering savers increasingly higher returns. HSBC is currently awarding savers a market-leading rate on its easy access account – and people can get started with just £1.
Easy access savings accounts are typically one of the simplest accounts to manage as they enable savers to make payments and withdrawals with minimal restrictions and small opening deposit requirements.
HSBC’s Online Bonus Saver is currently offering an Annual Equivalent Rate (AER) of three percent, calculated daily and applied to the balance monthly.
The three percent rate is awarded on up to £10,000 of the balance every month a withdrawal is not made, while 1.4 percent will apply to figures over £10,000.
While this is an easy access account, meaning savings can be withdrawn, it isn’t flexible and on the occasion that a withdrawal is made, a 0.65 percent standard rate will be applied to that month instead.
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She continued: “Average variable rates across easy access, notice and ISA equivalents experienced the biggest month-on-month rises on our records, with the notice account and notice ISA rates breaching two percent for the first time since December 2008.
“Moving into 2023, savers and providers alike will need to act quickly to keep on top of the changing market.”
While HSBC takes the lead of money comparison site Moneyfacts’ ‘Best Buys’, it isn’t the only account of this category offering a three percent interest rate.
Yorkshire Building Society (YBS)’s limited access Internet Saver Plus (Issue 12) is offering a three percent AER on savings up to £5,000, while a 2.5 percent rate will apply on the balance over this limit.
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There is no minimum deposit requirement and interest can be paid away or compounded, and savers can open an account using the Zopa app. Withdrawals are permitted without any penalties and up to £85,000 can be invested.
Chorley Building Society’s Easy Access Saver isn’t too far behind offering an AER of 2.85 percent.
The account can be opened with a minimum deposit of £500 and up to £500,000 can be invested overall. Interest is calculated daily and paid annually on December 31 and up to four withdrawals are permitted per calendar year without penalty.