3 High-Yielding Banks To Hike Your Income! Banco Santander SA, HSBC Holdings plc, Standard Chartered PLC

Boost your income with Banco Santander SA (LON: BNC), HSBC Holdings plc (LON: HSBA) and Standard Chartered PLC (LON: STAN)

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Cash

With UK GDP growing at a faster pace in Q2 than previously thought, things seem to be on the up for the UK economy. Indeed, the UK is one of the fastest growing economies in the developed world and the much-criticised austerity programme seems to be having a positive effect.

Despite this, the Bank of England seems unwilling to raise interest rates. While this will undoubtedly help the wider economy, it does little to aid savers and income seeking investors. So, with this in mind, here are three high-yielding banks that could provide a neat solution to continuing low interest rates.

Santander

Santander’s (LSE: BNC) (NYSE: SAN.US) 3% interest rate for 123 customers may be fairly well known, although the current yield of 7.6% on its shares is probably less widely known. Of course, dividends per share are set to fall in 2015 as Santander seeks to put itself on a more sustainable financial footing. However, at the current share price, this means the shares will still yield a highly attractive 6.9%.

Allied to this is strong growth potential, with Santander expected to increase earnings by 24% this year and by 21% next year. With shares in the company having a price to earnings growth (PEG) ratio of just 0.6, great value seems to be on offer as well as a high yield.

HSBC

Having made gains of 6% in the last three months, investors could be forgiven for believing HSBC (LSE: HSBA) (NYSE: HSBC.US) is due a pullback. However, shares in the Asia-focused bank still trade on a price to book (P/B) ratio of just 1.1 and this highlights that they offer superb value for money at current price levels.

In addition, shares in HSBC currently yield a highly impressive 5% and, with dividends per share set to grow by 8.1% next year, they could be yielding as much as 5.4% in 2015. This combination of income potential and value could prove to be in high demand moving forward.

Standard Chartered

With shares in Standard Chartered (LSE: STAN) having fallen by 4.5% in the last month alone, now could be the perfect time to buy. That’s because they now offer a top notch yield of 4.5%, which could rise to 4.7% next year given the bank’s strong dividend growth prospects.

Of course, the last few years have been tough for Standard Chartered, with various allegations of wrongdoing and a profit warning earlier this year. However, the next two years look bright for the bank. That’s because it is set to increase earnings by 6% in the current year and by 10% next year. This puts Standard Chartered on a PEG ratio of 1.0, which indicates growth at a very reasonable price.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Peter Stephens owns shares of HSBC Holdings. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

US Stock

The Nvidia share price falls! Here’s what I think happens next for the S&P 500

Jon Smith reviews the overnight results from Nvidia and explains why this could stall the S&P 500 performance through to…

Read more »

Investing Articles

Down 15% today, is this FTSE 100 share too cheap for me to miss?

JD Sports' share price has tanked after the FTSE 100 share released another profit warning. Is this the opportunity I've…

Read more »

Investing Articles

Up 8% today, is this FTSE 100 growth stock a slam-dunk buy for me?

Halma's share price is soaring thanks to another headline-grabbing trading update. Is the FTSE 100 stock now too good for…

Read more »

Investing Articles

With a P/E ratio of just 10.5 is now a brilliant time to buy a cut-price FTSE 250 tracker?

Harvey Jones says a recent dip in the FTSE 250 leaves the index trading at bargain levels. One stock in…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

To build a passive income flow, I’d follow this Warren Buffett approach

Warren Buffett has set up passive income streams most people can only dream about. Our writer sees some practical lessons…

Read more »

Growth Shares

As the boohoo share price falls, could it become a penny stock in 2025?

Jon Smith outlines some of the recent problems involving the boohoo share price and considers if things could get even…

Read more »

Young Asian woman with head in hands at her desk
Investing Articles

Here are the worst-performing FTSE 100 shares over the last 5 years

These five FTSE 100 shares have been complete duds over the last half decade. But is there potential for a…

Read more »

Investing Articles

Nvidia stock has tripled this year! Can it keep rising?

Nvidia's latest sales update showed strong growth and the stock's been on a tear so far in 2024. So is…

Read more »