Variable Rate Cash ISA

 

Key product information

How it works

HSBC Premier, HSBC Advance and HSBC Graduate (Advance) customers can enjoy variable rates of 2.15% AER (2.13% tax-free) variable on balances of £15,000 and over and 1.65% AER (1.64% tax-free) variable on balances under £15,000. All other customers will receive our standard rates of 1.70% AER (1.69% tax-free) variable on balances of £15,000 and over and 1.60% AER (1.59% tax-free) variable on balances under £15,000. These rates include a 1.4% bonus for new accounts for the first 12 months after the account opens. We pay interest monthly at a variable rate.

You can start your Variable Rate Cash ISA with any amount from £1 and save up to £5,760 this tax year.

Summary box
Product name Variable Rate Cash ISA
Interest rates We pay interest monthly at a variable rate.

See current interest rates
Tax status Interest is paid tax-free, that is free from UK Income Tax and Capital Gains Tax.
Conditions for bonus payment There's a bonus interest for the first 12 months on new accounts
Withdrawal arrangements Withdrawals are free of charge.

You have the right to cancel your account within 30 days of opening it.
Access Instant access to your money via internet, telephone or branch banking.

You can apply for and manage your Variable Rate Cash ISA account in a branch, by phone (0800 032 4729) or by post. You can manage your account online once it's opened.
Things to consider

An ISA is a tax efficient way of saving or investing as all income and capital gains arising within an ISA are exempt from any personal liability to UK Income Tax and Capital Gains Tax.

There are two types of ISA:
- Cash
- Stocks and Shares

The value of most investments and any income they generate can go down as well as up, meaning you may not get back the full amount you invested. Most investments should be considered as a medium to long-term commitment, meaning you should be prepared to hold them for at least five years.

A payment by you into an ISA in any tax year is called a subscription. You can only subscribe to one of each type of ISA per tax year.

If you've used up your Cash ISA subscription limit in a tax year, money withdrawn from an ISA cannot be reinvested until the following tax year.

Because of their tax advantages ISAs are subject to annual subscription limits. For the tax year commencing 6 April 2013 the overall ISA subscription limit is £11,520, of which up to £5,760 can be subscribed to a Cash ISA with one provider. The remainder of the £11,520 can be invested in a Stocks and Shares ISA with either the same or another provider. Alternatively, the full £11,520 can be invested in a Stocks and Shares ISA with one provider.

You cannot subscribe to more than one type of each type of ISA per tax year.

The value of the tax treatment depends on your individual circumstances. The tax benefits of ISAs could change at any time in the future.

Top up your existing Variable Rate Cash ISA by real time transfer of funds from your HSBC current account using Personal Internet Banking.

Definitions

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 interest rate before the deduction of tax applicable to interest on savings accounts.

Tax free means free of UK Income Tax and Capital Gains Tax.

ISA stands for Individual Savings Account.

Are you eligible for a Variable Rate Cash ISA? Check the full details


How to apply