HSBC has warned savings investors with maturing fixed rate products that they need to consider alternate reinvestment strategies. According to the bank, over 2.7 million fixed rate products have matured this year. There is a 5.5 million total expected to mature for the entire year. While many find this a safe investment, especially those reaching retirement, a re-investment into the same will produce a significant income drop. In fact it is estimated that if those accounts that matured this year were re-invested to a similar product they would have lost 722 million pounds in income.
The Bank suggested that savers consult an expert on the best way to reinvest the funds. There are new competitive savings bonds and other savings products available that should be considered before just re-investment into the same cycle product. One should consider the interest rate of the account, the length of the savings term and if there are any special offers for depositors. It was suggested that savers discuss more profitable options now available.