The latest announcement from HSBC wasn’t anything short of a surprise for its loyal customers having a regular savings account. Along with its internet-based bank, First Direct, HSBC has declared that the interest rates for regular savings accounts will be down to 2.75% from the previous 5% effective immediately.
Following the rate cut by HSBC, Mark and Spencer Financial Services remains the only one that is still offering interest rates as high as 5%. M&S Bank is also operated by HSBC since 2004 when the largest banking and financial services organization (HSBC) had bought it.
Nationwide Building Society was also in the league of those offering 5% interest rates at the start of the year. In the first quarter of 2019, however, it had also announced that the interest rates are being slashed.
2.75% Is The Least Interest Rate Being Offered On Regular Savings Accounts
The 2.75% interest rates as announced by HSBC are the least that are currently being offered in the market. The next best is being offered by Virgin Money (digital), Kent Reliance on the basis of specific branches, and Saffron Building Society on postal accounts. The interest rates by these corporations stand firm at 3%.
The 3% interest rates being offered by the aforementioned organizations and the newly announced 2.75% interest rates by HSBC are significantly lower than First Direct’s 6% interest rates that were applicable to the regular savings accounts until three years ago (2016).
HSBC offers regular savings accounts to the clients who can afford to contribute regularly to savings while holding a current account with the bank. As per the financial experts, such accounts are impeccable for people who are new to the realm of savings and are trying to build them up from scratch. Customers are required to make a regular contribution to the savings account on monthly basis that makes them eligible to receive interest towards the end of the year.
While the regular savings accounts have relish popularity in the past few years, with the latest rate cut, it can be expected that such accounts will eventually begin to lose their charm, as per the analysts.
HSBC Stock Performance On Friday
The movement in HSBC stock on Friday, October 18th, 2019 was reported to be minimal. The stock opened at 38.67 this morning. Following a daily high of 38.84, it was dropped back to the 38.76 level where it currently trades. The opening level marked the lowest for HSBC stock on Friday.