The short answer is no, your Penny pension doesn't earn interest.
So, how does your pension grow for retirement?
All pension providers invest their customers' cash into an investment fund. The goal is to grow the pension steadily over the years.
Your Penny Pension will be automatically enrolled into the HSBC Balanced Fund, this is a "balanced" fund which means it is not overly risky or cautious and generally won't have big ups or downs, but instead aims to steadily grow over the years you are invested.
We also have the Cautious Plan and Ethical Plan 🌱. You can switch to any of our other two plans at any point!
You can see the past performance of our default fund here and in the app by heading to Account > Documents > Key Investor Information - HSBC fund.
You can read more about the different pension plans we offer here:
Capital is at risk and investments can go down as well as up and past performance isn't an indicator of future performance.