Banking/Savings Section

HSBC Offers 8% Interest for One Year!

March 2005

This is THE best rate on offer now on the High Street. HSBC is offering 8% annual interest but it does come with 4 catches;

• You have to have an HSBC account
• You can only invest £250 a month for a total of £3,000 per annum
• You cannot take any of the money out for a year, and
• After 1 year the interest rate falls to a laughable 2.85%

Still, it is a great deal if you're organised enough to switch your money after the year is up.

What Else is On Offer?

• The Halifax is offering 7% pa (also a maximum of £250 a month) but note that this is paid gross so tax will have to be paid
• First Direct are offering 6.25% tax-free via their cash ISA, offer ends October 2005
• The Charity Bank has been offering 10.3% pa, but this is mainly due to the generous govt tax-breaks

Summary

Stay very flexible these days because with US and UK interest rates on the up, banks and other finance companies are going to be offering very competitive deals for savers on a regular basis. InvestorProfit.com reckons at least every month some company will try to score on the PR front by outdoing one of its competitors.

Also realise in this game that every basis point helps (100 basis points = 1%). Sure, the difference might only add up to £50 a year but it might only take you 1 hours work to open an account and transfer money into it.

See Also

• HSBC Bank
• The Halifax
• First Direct cash ISA
• The Charity Bank Article