The Bank of England have reduced the Base Rate by 1.50% to 3.00%. Following this, we have changed the rate of interest you earn on your Online Saver account from 4.25% AER to 2.75% AER, 2.72% gross variable.

The interest rates that apply to your Online Bonus Saver will change as well. The interest you earn changes from 4.75% AER to 3.25% AER (3.23% gross variable, including 1.75% AER bonus interest) in any calendar month you don’t make a withdrawal. If you do make a withdrawal, you’ll still be earning standard interest of 1.50% AER, 1.49% gross variable.

The interest rate that applies to amounts over £50,000 in your account will continue to track Base Rate (3.00% AER, 2.98% gross) if no withdrawals are made and a standard rate of 1.50% AER (1.49% gross variable) if you do make a withdrawal.

These new rates are effective from 13 November 2008.

Thank you for saving with HSBC.

Sigh. Really wishing I’d brought home more of my UK funds back when the exchange rate was 2.7 (it’s gone down to about 2.3 now, almost a 20% drop in value for me). Nothing to do now but let it earn (lowered) interest while waiting for it to rise, I guess. Not like I urgently need the cash right now.

The rate should rise eventually, right?

-sees a 1.5 exchange rate next year- NOOOOOooooo!!!


Posted on November 25, 2008, in Uncategorized. Bookmark the permalink. 2 Comments.

  1. well.. at least you can afford to park your money in the bank and wait for the interest rate to go back up.. the value of the pound is dropping and things are getting more ex too.. can you imagine, sains basic rice is now £1!! =(

  2. My solution is to spend spend spend! Or face deflation, as the newspaper said.Gosh you can’t imagine how depressing the newspapers are nowadays, especially those I pick up everyday from canary wharf…I will go singapore when it’s 1:1.

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