HSBC increases interest rates across savings account – how much more can you earn?

This is the fifth rate increase this year, following changes in February, April, July and August. These changes mean, from October 20 the Online Bonus Saver will increase from 1.60 percent to three percent on up to £10,000 for customers who don’t make a withdrawal from the account in the month.

Their easy access savings rates will have increased to 0.50 percent for all customers.

Additionally the MySavings Youth account up to £3,000 increased to 3.50 percent which is up 0.25 percent.

The One Year Fixed Rate Saver rates increased by one percent from 1.25 percent to 2.25 percent.

Britons looking to lock their money away for two years can now benefit from 2.50 percent, up by 1.20 percent.

The Loyalty ISA standard rate increased by 0.55 percent to 1.20 percent, with Advance Loyalty ISA increasing by 0.70 percent to 1.40 percent, and from 0.80 percent to 1.60 percent for Premier customers – up 0.80 percent.

As the Bank of England regularly review the use rare, HSBC continue to keep their savings rates under review.

For more information about the various savings account available, Britons can check the HSBC website.

The Bank of England has raised the Base Rate six times since December, to help stem soaring inflation.

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They increased its base interest rate to 2.25 percent in September, benchmarked at its highest level in 14 years, in a bid to tame the spiralling rates.

This means savings rates are expected to continue to go up.

Anna Bowes, co-founder of Savings Champion, said: “The market is still expecting further base rate rises so even better deals could be offered over the next few months and into next year.

“The best buys now on the market reflect an expectation of rate hikes in the future.”

But with none of the deals nearing the inflation rate of 9.9 percent, savers will still see the spending power of their cash eroded.

Money saving expert Martin Lewis urged Britons to shop around for the best deals.

On The Martin Lewis Money Show a few weeks ago he said: “I would wait a couple of days before everything is factored in and then at the beginning of next week I’d check your savings rate.

“If it’s less than two percent, you want to check if you can get a better deal and ditch and switch.

“Don’t let your money languish in a low-paying account.”

Following the Bank of England's decision to up the base rate, a number of savings providers have responded in kind.

Currently, the “top picks” on moneysavingexpert.com are Santander which pay up to 2.75 percent, this is on easy access savings.

For a one-year fix, Britons can get up to 4.4 percent with Coventry BS.

For a two-year fix, people can get up to 4.45 percent with Charter Savings Bank.

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