Savings Interest Rates, Switch Offers and Guides for HSBC

Who they are

HSBC UK traces its roots to the Birmingham and Midland Bank, which opened in 1836 and was founded by Charles Geach in the heart of Britain's industrial revolution. In 1992, HSBC Holdings plc acquired full ownership of Midland Bank in what was one of the largest acquisitions in banking history, giving HSBC the major foothold in Europe it needed to complement its existing business in Asia and the Americas. HSBC UK was formally established on 1 July 2018 to serve retail and business customers across the country, with its head office in Birmingham.

Today it is one of Britain's big five high-street banks, offering everything from everyday current accounts to savings, mortgages and international banking. It is particularly known for its Premier proposition, which suits internationally mobile customers or those with larger balances. Its subsidiary First Direct - the pioneer of telephone banking launched in 1989 - continues to operate as a division of HSBC UK.

Savings accounts

HSBC offers a broader range of savings accounts than many people realise. The headline rate is on the Regular Saver at 5.00%, though bear in mind you cannot make withdrawals during the term and contributions are capped monthly - so the actual interest earned is lower than that headline figure suggests. For a straightforward fixed-rate commitment, the Fixed Rate Saver runs at 3.70% over one year or 4.00% over two years, both requiring a minimum of £2,000.

If you want a cash ISA, the Fixed Rate Cash ISA pays 4.00% fixed for one year with a £500 minimum. The easy-access Loyalty Cash ISA sits at 2.50%, while Premier customers get a slightly better 3.00% on their equivalent account. For easy access outside of an ISA wrapper, the Online Bonus Saver pays 3.35% variable from just £1, and the MySavings account pays 3.75% variable but requires a £2,000 minimum. The Flexible Saver and Premier Savings accounts carry notably lower rates at 1.05% and 1.65% respectively - they are there for convenience rather than growth, so most active savers should look elsewhere within the HSBC range or compare outright.

All HSBC UK savings accounts shown here are FSCS-protected up to £120,000. One important note: HSBC and First Direct are both trading names of HSBC UK Bank plc, so customers who hold deposits under both trading names will only be eligible for one claim up to the current FSCS deposit limit in total. If you save with both brands, the £120,000 protection covers the combined balance, not each separately.

Switching to HSBC

HSBC currently runs two switch offers via the Current Account Switch Service. The standard Bank Account offer pays £220 cash, but you need to meet three conditions within 60 days: complete a full CASS switch including at least two direct debits, deposit a minimum of £2,000, and spend £500 on the linked debit card. Those are steeper hurdles than some rivals, so make sure normal spending will genuinely cover that £500 comfortably before you apply.

For customers who qualify for HSBC Premier - which requires either depositing £100,000 or more into your account, savings or investments within 90 days of switching - the bonus rises to £500, currently one of the largest switch offers on the market. The Premier account also unlocks the Premier Savings rate and the better Loyalty Cash ISA rate mentioned above, so the overall value of switching at that tier is meaningful.

Both offers are for new customers only. Check HSBC's terms for the exact eligibility window if you have held an HSBC or First Direct account previously.

Is it right for you?

HSBC is a solid choice if you want all your banking in one place, value a large branch and ATM network, or plan to bank internationally. Its savings rates are reasonable across the range, though specialist savings providers and newer digital banks often beat HSBC on easy-access and fixed-rate deals. The Regular Saver rate is genuinely competitive if you can commit to the no-withdrawal rule, and the fixed-rate ISA is worth comparing at renewal time.

One practical point: if you already bank with First Direct, your FSCS protection is shared across both brands, so watch your total balance across the two.

As ever, rates change - sometimes quickly. Check the live figures on this page for the most current numbers before deciding where to put your money.