HSBC will reduce the interest rates on its easy-access Premier Savings account today, February 24.

HSBC has announced it is set to cut interest rates on its easy-access Premier Savings for a number of customers. HSBC will reduce the interest rates on its easy-access Premier Savings account today, February 24.

The rate for balances below £50,000 will drop from 1.98% to 1.74%. HSBC has said the rates on this savings account will again change in April. In two months, the interest will drop from 1.74% to 1.49%.

HSBC explained: “AER stands for Annual Equivalent Rate. This shows you what the gross rate would be if interest were paid and compounded each year. Gross is the rate of interest paid before any tax (where applicable) has been deducted.

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“Tax-free means free from UK Income Tax and Capital Gains Tax. ISA stands for Individual Savings Account. All rates are variable unless otherwise indicated.” Rachel Springall, a finance Expert at Moneyfactscompare, shared: “Savers may be pleased to see that relentless rate cuts have calmed over the past week across the top rate tables for fixed rate bonds and fixed rate Cash ISAs. It remains prevalent for savers to compare deals frequently and act quickly if they want to grab a competitive rate.

“Challenger banks continue to offer the most attractive savings rates in the market, but we have seen some brands adjust their positions to catch up with their peers. Hodge Bank moved to cut the rates on its fixed rate bonds across one, two and three-year terms this week.

“ISA season kicked off early with some decent deals recently, and the past week has continued this positive trend, albeit with only a handful of providers. Outside of fixed bonds and Cash ISAs, there more providers catching up to cuts by the Bank of England, with Chase reducing the rate on its easy access account to 4.50 per cent AER. Moneybox also decided to cut its 95-day notice account rate, subsequently dropping out of the top rate tables.

“Those savers looking to instil the savings habit will find a regular savings account as a useful option. The top regular saver remains on offer from Principality Building Society at eight per cent fixed for six months. Whichever account savers decide on, it is imperative to ensure they stay within their Personal Savings Allowance (PSA) and take advantage of their ISA allowance to protect their hard-earned cash from tax.

“Now is the time for savers to shake any apathy and review any rates that could be susceptible to rate cuts. As proven, loyalty doesn’t pay and there are lots of brands out there offering competitive returns that are fully protected by the FSCS (Financial Services Compensation Scheme), just as the big banks are.”