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HSBC has launched a new regular savings account with an “attractive” seven percent interest rate.
Regular savings accounts can be a good option for those looking to get into a savings habit, as these accounts typically offer higher interest rates and the terms generally encourage savers to pay money into the accounts monthly.
Savers can invest between £25 and £250 per month in HSBC’s Regular Saver and interest is applied when the account matures after 12 months.
The account is available to existing customers only and partial withdrawals cannot be made. HSBC said this is to ensure customers “benefit” from the interest rate on the account.
By investing the maximum amount of £250 in the account per month, savers can amass a balance of £3,113.75 after 12 months, based on the current interest rate.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, told Express.co.uk: “Several providers have been updating their regular savings offerings recently, including HSBC, which has increased the rate to an attractive seven percent and is fixed for 12 months.
“The account may be enticing to those who wish to build a healthy savings habit or save towards a specific goal. Savers will be able to invest as little as £25 each month, up to a maximum of £250.”
However, Ms Eastell warned: “It is worth taking note that no monthly payments can be missed so it is crucial that savers plan accordingly.”
Additionally, she noted: “Although earlier access is permitted savers should consider this carefully as this will result in account closure and subject to the Flexible Saver rate being paid.”
HSBC’s product is one of several competitive regular savings deals currently available, offering the potential for even greater returns.
Principality Building Society offers an Annual Equivalent Rate (AER) of eight percent. The term of the account runs for six months and up to £200 can be invested per month. The account can be opened with a minimum deposit of £1 and interest is paid on maturity.
Yorkshire Building Society has also launched a new Regular Saver with an eight percent interest rate. Customers can invest up to £50 per month and withdrawals can be made on three occasions during the 12 month term.
The online-based digital bank first direct offers an AER of seven percent. The rate is fixed for 12 months and interest is calculated daily and paid on account maturity. Between £25 and £300 can be deposited per month in multiples of £5, but withdrawals are not permitted throughout the 12-month term.
For those looking for a new way to save some cash, we round up the top-rate savings accounts every week, from easy access to Cash ISAs.