HSBC fixed rate bonds offer a guaranteed rate of interest on your savings so you know what return you will receive while you save for a set period of time. HSBC fixed rate bonds may offer different terms, and different rates, which may increase for larger deposits and longer terms. Minimum deposits may apply.
Choose HSBC fixed rate bonds and you could get:
- A choice of fixed terms – 3 or 6 months, or 1, 2, or 3 years
- Interest paid monthly or annually
- The option to open more than one bond
- Guaranteed returns on your investments
As with all fixed rate bonds, early closure will normally be subject to a fee, such as an interest charge, so it is best to ensure you will not need access to funds in a HSBC fixed rate bond before depositing your savings. Because of this you may want to consider some other options before.
Alternatives to fixed rate bonds
- Tracker bonds – Tracker bonds are different from fixed rate in that the interest you receive over the course of the bond may vary, this is because your interest rate is tied to the Base Rate of The Bank of England, therefore any changes made to the Base Rate will alter your bond’s interest rate meaning you could have a potentially better or worse rate of interest.
- Structured Deposits – Structured deposits also require you to lock your savings into the investment for a set period of time, however they usually offer higher potential interest returns, but they are not guaranteed. Structured deposits work by being linked to an index or indices such as the FTSE 100. If the index the plan is tied to does not perform in the way laid down by the plan then you will only receive your original deposit back without any of the interest. Because you risk not getting gaining any interest with this type of plan.
- Savings Account – If you are looking into how you can earn interest on your savings but still also maintain access to them should you ever need them then an instant access savings account may be the solution to you. Although they do normally offer lower interest rates than bonds or structured deposits, they tend to offer unlimited free withdrawals meaning if you should ever need your savings you don’t need to worry about any forfeit for closing the account early.