Existing HSBC customers will be laughing all the way to the bank after the lender launched a new regular savings account offering a healthy 10% interest.
The rate on the new HSBC Regular Saver is fixed for 12 months, and in order to qualify customers must save between £25 and £250 in the first month then make regular payments every month of at least £25 up to the maximum monthly balance by standing order from a HSBC current account.
The maximum balance starts at £250 in month one and then increases by £250 each month thereafter, so if you only manage to save £100 in the second month you can invest £400 the following month - up to a maximum balance of £3,000.
If you deposit the £3,000 maximum allowance over 12 months you will earn approximately £163 in gross interest when the year is up, provided you make a deposit as soon as the account is opened.
However, the account is saddled with several restrictive conditions which may make some savers think twice.
No withdrawals can be made during the 12 months, and if you close your account interest will be charged at HSBC's flexible saver rate for the entirety of the period. Customers must also hold a qualifying HSBC account to apply, as the Regular Saver payments must be made from another HSBC account each month.