HSBC has controversially cut interest rates on its Bank Account Plus accounts by 2% AER. This comes after the Santander Group upped in-credit rates on a number of current accounts. The rate has increased to a market leading 6% AER on Alliance & Leicester Premier Direct and Premier 50 accounts, as well as Abbey current accounts.
HSBC Bank Account Plus customers now have an in-credit interest rate of 0% - while Abbey and Alliance & Leicester customers could find themselves up to £150 better off in interest per year. One of the biggest disappointments regarding the latest move by HSBC is that Bank Account Plus customers have to pay nearly £150 annually for the package.
Louise Bond, Personal Finance Manager at uSwitch, explained that despite the negative comparison with the Santander group, HSBC customers could still get a good deal from the account package.
“AS Santander does the decent thing by increasing the in-credit interest rate, HSBC cuts rates by 2% AER for all Bank Account Plus Customers. It’s a packaged account, offering benefits such as travel insurance, breakdown cover, life cover and identity theft protection. If all these benefits are utilised, it could still be a good deal for some people. However there are several other packaged accounts available which offer in-credit interest rates of up to 6% AER so it’s definitely worth looking around for the best deals.”