HSBC reducing savings interest rates

PRAISETHESUN

Got an email from HSBC earlier today about them having to make the "difficult" decision to reduce interest rates on their savings accounts. Got slightly worried when they didn't state what was happening to their regular saver rate so I went hunting on their website. Their standard rate reg saver appears to have been reduced (from when I last checked at least) from 3% to 2.75%, but the real kicker is that I can't seem to find any reference to the preferential rate (5%) saver? I renewed mine a month or two back so I'm fine for now, but it'd be a shame if they were to remove it moving forward... it's the only thing keeping my HSBC Advance account open at the moment. Anyone else get the same info?

Vortigern

Yes. Already reported in the Regular Savers thread.

There is no preferential rate for Advance or Premier from next renewal.

PRAISETHESUN

Wasn't aware of the ongoing discussion, thanks. Guess I'll have a few more donor switch accounts up my sleeve next year

youngretired

Where there is no longer an incentive for having the Advance account for the regular saver, I'll be looking at downgrading after our existing ones mature in March.

Has anyone else downgraded and if so how easy is it? I googled and it says that you can downgrade in branch, but is this the only way?

Vortigern

I can't see any benefit in downgrading. There's no account fee and they could offer preferential treatment to Advance customers in future.

There may be something in the terms that says they will downgrade you if you do not make the required deposits.