HSBC has slashed the interest rate on its Bank Account Plus from 2% AER to 0%.
Given that customers pay £146 a year for the account, they will no doubt feel aggrieved at the decision, says Louise Bond at uSwitch.
"This account now offers consumers an in-credit interest rate of 0% across all tiers,” says Bond.
“This is pretty disappointing. Previously, these customers received 2% on balances of up to £1,000 which could have earned them anything up to £20 per year in interest.”
Look to A&L instead
The HSBC Plus account is a packaged account, meaning you also get a number of other benefits (such as travel insurance, breakdown cover, life cover and identity theft protection), so it's not like you're getting nothing for your money.
However, if you're purely after an attractive interest rate, then you should definitely consider switching to Alliance & Leicester.
The bank recently hiked the rate on its
Premier Direct account from 5% to 6% of the first £2,500 in the account (you earn 0.1% on anything over this limit).
The account also comes with a 0% overdraft for the first 12 months, making it a truly competitive offering. The only catch is that you have to deposit at least £500 a month into the account.
