Helping you save for a place of your own
Help to Buy: ISAs are now closed to new applicants, but you can continue adding money to one you’ve already opened until 30 November 2029. You can also transfer an existing Help to Buy: ISA to HSBC if you’re with another provider and hold an HSBC current account, Flexible Saver or Premier Savings.
Missed out? Explore other ways to save
How your Help to Buy: ISA works
Help to Buy: ISAs were brought in by the government to help first-time buyers save for a new home more quickly. Here’s a reminder of how they work.
1. Save your money
You can save up to £200 every calendar month. Save £1,600 or more and you’ll get a government bonus to use towards a property.
2. Find a property
When you've found a place to buy, let us know by phone or in branch. We’ll send you a closing statement to give to your solicitor or conveyancer.
3. Claim your bonus
Your solicitor or conveyancer will claim your 25% government bonus on your behalf. It will then be added to your funds when you complete on the property.
Your questions answered
Managing your Help to Buy: ISA
Manage your ISA online
Check your balance and make transactions, 24/7, by logging on to online banking.
Ready to buy your first property?
Find out everything you need on the journey to owning your own home.
Summary box for our Help to Buy: ISA
The Financial Conduct Authority (FCA) requires all banks and building societies to include a 'summary box' like this one for each of their savings products. It gives you all the key facts and figures in one handy spot.
What is the account name?
Help to Buy: ISA
What is the interest rate?
| Balance | Tax-free per year | AER |
|---|---|---|
| Up to £12,000 | 3.20% | 3.25% |
| Over £12,000 | 1.49% | 1.50% |
| Balance | Up to £12,000 |
|---|---|
| Tax-free per year | 3.20% |
| AER | 3.25% |
| Balance | Over £12,000 |
| Tax-free per year | 1.49% |
| AER | 1.50% |
Interest is variable, calculated daily and paid monthly. Balances of up to £12,000 will earn the higher rate of interest. Only the part of the balance that’s over £12,000 will earn the lower rate of interest.
Can HSBC change the interest rate?
Yes. The account pays a variable rate of interest, which means it can change over time. The HSBC Cash ISA Terms and Conditions (PDF, 754KB) explain when and how we do this. For example, we might review the interest rate if the Bank of England base rate changes.
What would the estimated balance be after 12 months, based on 12 monthly deposits of £200?
| Total deposits after 12 months | Interest Rate | Balance at the end of 12 months |
|---|---|---|
| £2,400 | 3.25% AER (3.20% tax free) | £2,442.04 |
| Total deposits after 12 months | £2,400 |
|---|---|
| Interest Rate | 3.25% AER (3.20% tax free) |
| Balance at the end of 12 months | £2,442.04 |
For the purpose of this calculation it is assumed:
- 12 monthly deposits of £200
- No withdrawals
- No change to the interest rate during the 12 months
- Excludes the 25% government bonus
- Deposits made on the same day each month
Projection provided for illustrative purposes only and does not take into account individual circumstances.
How do I manage my account?
How to open the account
Since 1 December 2019 we no longer accept new applications. However if you are an existing HSBC current account, Flexible Saver or Premier Savings customer, you can transfer your existing HTB: ISA from another provider by completing an ISA transfer form.
You can only transfer in an existing Help to Buy: ISA from another provider to us; you cannot transfer other cash ISAs or stocks and shares ISAs into a Help to Buy: ISA.
Eligibility for the government bonus
Participation in the Help to Buy: ISA scheme is subject to the Help to Buy: ISA Scheme Rules and you must continue to satisfy the eligibility criteria to apply for the government bonus. This includes being a first time buyer and never having owned a residential property. This is set out in the HSBC Cash ISA Terms and Conditions (available from hsbc.co.uk/legal) and you can view the scheme rules and find out more about the scheme at ownyourhome.gov.uk/scheme/help-to-buy-isa/.
Minimum / maximum balance
The maximum you can deposit is subject to the Help to Buy: ISA Scheme Rules. The maximum annual amount you can save into a Help to Buy: ISA will be less than the maximum annual ISA subscription limit.
Regular deposits
You can make monthly deposits up to a maximum of £200 per month.
How to manage the account
Once opened, you can manage the account through online banking, telephone banking, the HSBC Mobile Banking App or in branch.
Can I withdraw money?
Yes, you have instant access to your account. You can make as many fee-free withdrawals as you like. Once you have paid in the maximum monthly allowance, any amount withdrawn cannot be replaced until the following calendar month and any such amount will count towards the monthly allowance for that following month. You can only pay up to £200 a month into your Help to Buy: ISA, so making withdrawals means it will take longer to build up your savings.
If you withdraw funds from your ISA you will lose the associated future tax benefits.
The bonus you receive from the government is based on the final balance in your account, so anything you take out beforehand won’t count towards it.
Additional information
Cancellation rights only apply to subscriptions that you make in the first 30 days following your transfer in from another provider. You don’t have cancellation rights over transferred in funds.
Interest is paid tax free, that means it is paid free from UK Income Tax and Capital Gains Tax
- The value of tax benefits described depends on individual circumstances. The tax treatment of ISAs could change in the future.
- A government bonus of 25% is payable of the amount you save up to £12,000. The maximum bonus you can receive is £3,000.
Definitions:
- AER: This stands for ‘annual equivalent rate’. This shows you what the gross rate would be if interest were paid and compounded each year.
- ISA: This stands for ‘Individual Savings Account’.
Rates correct as at 11 December 2024
Account documents and other information
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