The UK savings scene is experiencing a low interest rate environment, with the Bank of England Base Rate continuing to be held at 0.1 percent, well over a year since it was first cut to this record low level. There are various savings accounts offering an interest rate of at least one percent though.
This includes HSBC, with the HSBC Regular Saver paying one percent AER/gross.
Savers can start to earn this interest rate from just £25.
They will need to set up a standing order from their HSBC account, to pay between £25 and £250 into the Regular Saver each month.
However, if the regular payments are less than £250 per month, rest assured that it is possible to carry the allowance over.
Customers can then pay more in later months should they wish to, up to a total of £3,000.
The rate is fixed for 12 months, meaning it won’t change in this time.
However, to benefit from the one percent rate on this account, customer can’t make partial withdrawals at any time during the 12 months.
HSBC has explained it could be some time to open the account though, due to “very high demand”.
A notice on the website states: “Due to very high demand, it is taking us longer than usual to open new Regular Saver accounts.
“If you’ve already applied for a new account, please bear with us and we will be in touch shortly.”
Those who need to access the money during this one-year period can choose to close the account early.
However if they do this, they will receive interest at HSBC’s Flexible Saver rate.
At the time of writing, the interest rate on the Flexible Saver is 0.01 percent AER/gross.
There are a number of other banks offering a one percent interest rate via regular savings accounts.
This includes HSBC’s sister bank first direct.
The Regular Saver Account from first direct pays one percent AER/gross per annum fixed for 12 months.
Savers can put between £25 and £300 into the account each month – working out at £3,600 per year.
Like HSBC, first direct savers can carry their allowance over and pay more in later months if their regular payments are less than £300 per month.
Interest on this account is calculated daily and paid 12 months after the account is opened.
It’s important to be aware this account is only available for existing first direct 1st Account customers.
Furthermore, partial withdrawals are not allowed.
To access the cash, the account can be closed before the end of the 12 month period.
However, should this happen, first direct will only pay interest at the standard Savings Account variable rate – currently 0.01 percent.