HSBC savings account adds 8% option

Competition in the high-interest savings market is to hot up this week, with a new eight per cent account being launched by HSBC and a similar product expected from Abbey at the end of the week.

The new HSBC account will be available only to current account customers, and will pay eight per cent gross interest for the first 12 months.

HSBC is claiming that this is a better deal than is on offer from any of its rivals.

The current account stipulation is also being viewed as an effort to boost current account numbers.

Abbey, meanwhile, is due to make an announcement on Friday.

The news follows savings account launches from Yorkshire and Chelsea building societies last week, and comes at a time when the government is urging people to put more into savings and pensions.