A financing expert has welcomed HSBC's decision to increase savings rates offered to some of its online banking customers.
Recently, the UK's largest banking institution announced that its virtual banking customers would now be able to benefit from an annual equivalent rate of 5.75 per cent from their savings account.
Commenting on the move, Stuart Glendinning, managing director of financing website moneysupermarket.com, said that it highlighted the existence of an "easy-access savings rate war".
And Mr Glendinning explained that the Bank of England's recent decision to raise the base rate by a quarter of a percentage point to 5.25 per cent has increased competition between savings account providers.
"After the last base rate rise, we have seen a new level of competition in the market not seen for years and now five providers offer easy-access saver accounts with rates from 5.6 per cent upwards," he said.
The Bank's monetary policy committee is scheduled to meet again on February 8th 2007.
Some financing analysts have hinted that the base rate may be increased again, which could prompt a number of financial services providers to raise savings rates on their savings accounts.
Financing analyst highlights pricing war in savings account sector
Financing analyst highlights pricing war in savings account sector
Wed, 07 Feb 2007
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