uSwitch comments on HSBC's 2% AER reduction to the Bank Account Plus in-credit interest rate

In response to HSBC's 2% AER reduction to the Bank Account Plus in-credit interest rate, Louise Bond, personal finance manager at uSwitch.com, comments:

"As Santander does the decent thing by increasing the in-credit interest rate on both Alliance and Leicester (Premier Direct and Premier 50) and Abbey (Credit Option) current accounts to a market leading 6% AER, HSBC cuts rates by 2% AER for all Bank Account Plus customers.

"This account now offers consumers an in-credit interest rate of 0% across all tiers.

This is pretty disappointing as the packaged deal costs consumers ?146.40 per year.

Previously, these customers received 2% AER on balances of up to ?1,000 which could have earned them anything up to ?20 per year in interest.

"In stark contrast, qualifying Abbey and Alliance and Leicester current account customers could earn anything up to ?150 a year in interest under the new 6% AER deal.

This is an extra ?25 a year following the 1% in-credit interest rate increase which comes into effect today.

"The HSBC Bank Account Plus is a packaged account, offering benefits such as travel insurance, breakdown cover, life cover and identity theft protection.

If all of these benefits are utilised, it could still be a good deal for some people.

However, there are several other packaged accounts available which offer in-credit interest rates of up to 6% AER so it's definitely worth looking around for the best deal.

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