Savers can get the 3.25 percent rate on balances up to £10,000 with the HSBC Online Bonus Saver. Interest is calculated daily and paid into the account each month.
The account is currently the top-paying instant access account after HSBC increased its rates this past week.
The interest rate was increased by 0.25 percent from the previous three percent with the product now in “a market-leading position”, according to an update from comparison site moneyfacts.co.uk on March 3.
Savers have to be careful about making withdrawals as when this happens, the interest rate will drop to the standard rate of 1.2 percent for that month.
If a person deposited £1,000 when they opened the account, they would have a balance of £1,032.50 after a year.
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A person must be aged 16 or over to open the account and will need a HSBC current or savings account.
The account can only be opened in a sole name and must be opened online. After this it can be managed online or using the app.
Customers have a 14-day cancellation period after they have opened the account in case they change their mind.
The bank has increased its rates across its instant access savings accounts several times recently.
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The central bank has continued to increase the rate in efforts to rein in the rising rate of inflation but this peaked late last year at just over 11 percent.
The January measure for inflation went down to 10.1 percent with experts predicting it will continue to fall over the course of this year.
Paul Went, managing director for Consumer Finance at Shawbrook, told Express.co.uk savers should look around to make sure they are getting the best deal.
He said: “With the base rate now at four percent, and expectations that it’ll peak at 4.5 percent this year, it’s the right time for people to switch from their old savings accounts to better-paying options.”
He added: “The Bank of England has given the green light for savers looking for smarter ways to make their money work harder.
“Whether it’s easy access for flexibility or a fixed rate to put away for longer, now is the time for people to move their savings.”
Iwona Hovenko, Property, Mortgage and Real Estate analyst at Bloomberg Intelligence, also said she expects interest rates to peak soon.
She commented: “We believe that the Bank of England rate may peak at about 4.25 percent with the hiking cycle ending in either March or May.
“Weaker economic data could even push the BOE to refrain from (or at least pause) further hikes beyond the current four percent level.”
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