HSBC premium account pays 0% interest

HSBC customers paying £12.95 per month for the privilege of a Bank Account Plus current account have seen their interest rate slashed to 0%.

Savers previously received returns of 2% on the first £1,000 they held in the account, as well as additional benefits such as breakdown cover, free travel insurance, and protection against identity theft.

However, HSBC has now cut interest rates on the account to 0%, regardless of the amount held in the account.

A spokesperson for HSBC said: “The HSBC Plus no longer offers credit interest, but it does provide preferential rates for both borrowing and saving, including offering customers the option to save up to £250 per month in our regular savings account and earn 10% AER.”

Price comparison service uSwitch.com slammed the rate cut as “disappointing” on an account that costs £146.40 per year.

By contrast, several other packaged current accounts offer in-credit interest rates of up to 6% AER, uSwitch.com said.

It added, however, that the HSBC Plus still offers a “good deal” for people who make the most of all the benefits it provides.

Barclays last week raised the overdraft rate on a number of current accounts by nearly one third.

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