HSBC reducing savings rates again.

Kezzy2

Got an email this afternoon, HSBC regrettably is having to reduce interest rates on saving accounts. This seems rather mean. 

eskbanker

Kezzy2 said:

Got an email this afternoon, HSBC regrettably is having to reduce interest rates on saving accounts. This seems rather mean. 

"Rather mean" in what sense?  The BoE reduced its base rate last month, so most institutions have responded to that accordingly, or by your use of 'again' are you suggesting that there have been multiple changes since then?

With the exception of their regular saver account, their rates have been pretty uncompetitive for ages anyway!

Kezzy2

But when BoE raises rates the banks are very slow to raise saving rates, but as soon as BoE reduces rates the banks immediately follows suit.  

eskbanker

Kezzy2 said:

But when BoE raises rates the banks are very slow to raise saving rates, but as soon as BoE reduces rates the banks immediately follows suit.  

The base rate change was six weeks ago!

And it's advance notice of changes that haven't come into effect yet (as well as bumping up the regular saver from 5% to 7% with immediate effect):

We are reducing the interest rate on a number of products effective either 2 October 2024 and 18 November 2024

[...]

We have also increased the interest rate on our Regular Saver to 7.00% AER/gross.

https://www.hsbc.co.uk/savings/interest-rates/

wmb194

Kezzy2 said:

Got an email this afternoon, HSBC regrettably is having to reduce interest rates on saving accounts. This seems rather mean. 

Vote with your feet.

https://moneyfactscompare.co.uk/savings-accounts/

Nasqueron

First Direct doing the same but it's the easy access saver that they put your money in after regular saver ends - at least that is what I got through. Other half had a reduction from Leeds Building Society about the same thing for one of their basic offerings

Stargunner

Kezzy2 said:

Got an email this afternoon, HSBC regrettably is having to reduce interest rates on saving accounts. This seems rather mean. 

You would of noticed increases in savings interest over the last 18 months as the BOE increased rates up to 5.25%.  It is only natural that savings rates will drop as the BOE reduces rates.

Rich1976

There is going to be 2 further BOE rate cuts in the next few months, if what has been reported is true so you can expect savings rates to fall further .

The Big Banks have always been quick to reduce rates but slow to increase them. They are not in business for the benefit of their customers and they know that very few of their savings customers will move away to somewhere more competitive. To be fair to HSBC most of their rate changes are not taking effect until November so they have provided a couple of months notice and the reductions are not by the full 0.25% ( except the instant access account ).
Other banks rates have changed almost immediately .