HSBC rates plummet to almost zero

SAVERS with HSBC easy-access Flexible Saver and Instant Access Savings have seen their rate fall to almost zero from today.

The bank now pays just 0.01 pc, or 10p a year interest on each £1,000. Even those who qualify for its preferential rate through the Advance current account will earn only 0.05 pc — or 50p interest a year on £1,000. NatWest already pays a paltry 0.01 pc on its Instant Saver.

HSBC Loyalty Isa customers have also suffered cuts. It will pay just 0.2 pc to some savers from today. Even if you qualify for its loyalty rate by adding money to your account each year, you will only see interest of between 0.3 pc and 0.5 pc, depending on which current account you hold.

Account holders with its Cash e-Isa, closed to new savers, have seen their rate more than halve to 0.2 pc from 0.5 pc in its latest round of cuts.

And in two weeks, savers in M&S Bank, which is owned by HSBC, will see the rate on their Advantage Cash Isa drop from 0.8 pc to 0.5 pc. This was once among Money Mail’s best buys.

In brighter news, Co-op Bank has launched a new issue of its Britannia Select Access Saver at 0.6 pc, but you are limited to making four withdrawals a year. It is available online and through its branches.

The top branch deals come from Virgin Money at 0.95 pc on its Defined Access Saver, as long as you make no more than three withdrawals a year.

If you need a High Street account that does not restrict the number of withdrawals, Coventry BS Easy Access Saver Issue 4 pays 0.85 pc.