Fixed Rate Cash ISA

Fixed Rate Cash ISA

We calculate interest daily and credit this at the end of the fixed term.

After the first 30 days, the Fixed Rate Cash ISA will continue for a further 12 months. This means it will stay open for approximately 13 months in total.

Interest starts to accrue as soon as money appears in the ISA. If money is received into the account after the 30 day cooling-off period but before the 70 day transfer-in period, that part of the deposit will receive less than 12 months' interest.

No, once we open your account, the rate will remain fixed for the duration of the fixed rate period.

This calculation is for illustration purposes only. We assume:

• The deposit is made on the last day of the 30 day cooling-off period
• No further deposits or transfers in
• No withdrawals

This projection is provided for illustrative purposes only and doesn't take individual circumstances into account.

• Aged 18 years or over
• To subscribe you must be resident in the UK for tax purposes, or if not so resident, be a UK Crown servant serving outside the UK, or be married to, or in a civil partnership with, such a person
• Hold an HSBC current account
  
• This account can only be opened in a sole name

Open an account online, by phone or in a branch.

A minimum of £500 must be deposited into the account.

This can be made up of either:

• No maximum limit for transfers in
• Current tax year subscriptions
• Transfer of current and / or previous tax years’ subscriptions from another cash or stocks and shares ISA.

Or a combination of the two above.

We must receive the minimum amount of £500 or transfer instruction within the first 30 days, and / or the transfer funds from your previous ISA provider within the first 70 days.

The overall annual ISA subscription limit is subject to change every year (currently £20,000). Within this, the Lifetime ISA has its own annual payment limit (currently £4,000). 

You can only subscribe to one type of cash ISA and one type of stocks and shares ISA in the same tax year across HSBC and first direct.

Once opened you can view your balance by using online banking and the HSBC UK Mobile Banking App (device restrictions apply), where you can chat to us 24/7 (subject to maintenance periods). You can manage the account using telephone banking or in a branch.

Any withdrawals must be in full and will result in the account being closed. You may be subject to an early closure fee if you close your account after the 30-day cooling off period. The early closure fee will be the lower of the interest earned on your account, or a maximum of 90 days’ interest. This means that if you close your Fixed Rate Cash ISA before day 90 you could end up with no interest paid.

Your early closure fee will be taken from the balance of your Fixed Rate Cash ISA. If you withdraw funds from your ISA you will lose the future tax benefits associated with holding that money in an ISA.

At the end of the fixed term we’ll convert your Fixed Rate Cash ISA into a Loyalty Cash ISA. Once the conversion process is complete you will then be able to access your money without incurring an early closure fee.

A 30-day cooling-off period applies to this account.

The value of tax benefits provided by a cash ISA depend on your personal circumstances and tax rules may change in the future.

Subscribing to a HSBC or first direct cash ISA may affect your eligibility to subscribe to a HSBC Help to Buy ISA.

• AER stands for Annual Equivalent Rate. This shows you what the gross rate would be if interest were paid and compounded each year
• Gross is the rate of interest paid before any tax (where applicable) has been deducted
• Tax free means free from personal liability to any UK Income Tax and Capital Gains Tax
• ISA stands for Individual Savings Account.

Rates correct as at 6 November 2024.

You can apply for a Fixed Rate Cash ISA if you:

• Are 18 or over
• Are an existing HSBC current account holder

To subscribe you must also be:

• A resident in the UK for tax purposes, or if not so resident, be a UK Crown servant* serving outside the UK, or be married to, or in a civil partnership with, such a person
• Not already have subscribed to another cash ISA with HSBC or first direct in the current tax year

*Crown servants are typically diplomats or members of the Armed Forces. Their spouses / civil partners are also eligible.

If you have a permanent UK residential address you can apply online to either subscribe and / or transfer into a new Fixed Rate Cash ISA.

If you do not have a permanent UK residential address you can only apply to transfer in existing cash or stocks and shares ISAs to a new Fixed Rate Cash ISA.

It's important to transfer ISAs correctly in order to protect your tax-free allowance.

You may be able to transfer an existing cash ISA or an existing stocks and shares ISA into a new Fixed Rate Cash ISA. In either case, you'll need to open the new ISA first, before transferring into it.

Before you do any ISA transfer, make sure you check the terms and conditions of the ISA you’re transferring from, in case there are any withdrawal restrictions or charges.

If we do not already have your National Insurance number, we'll need to know this, so please have the number handy.

You can apply online if you already have an HSBC current account (other than a Basic Bank Account) and are registered for online banking.

You'll need to contact us to apply if you:

• Have a Basic Bank Account with us
• Wish to subscribe and are a UK Crown servant serving overseas, or be married to, or in a civil partnership with, such a person

If you don't bank with us yet, you'll need to open a current account first.