The announcement of a lowered rate from HSBC and First Direct, then, is likely to disappoint savers putting away money here.

The banks have decided to slash the rate of the Regular Saver from 2.75 to one percent, in a move which will have implications for some savers.

However, existing Regular Saver customers will be unaffected by the move, as their 2.75 percent rate is fortunately locked in for the duration of their account.

This means the interest rate will only reduce when the account matures at the end of the 12 month period.

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To benefit from the rate offered on this account, savers will not be able to make partial withdrawals at any time during the 12 month period.

For this reason then, the Regular Saver is more suited to those who have spare money to put aside for this short length of time. 

To be eligible, a person must hold an active HSBC current account - excluding a Basic Bank Account.

Only one Regular Saver account per customer is permitted by the bank. 

An HSBC spokesperson commented on the decision which has been made.