What Happens When My Fixed Rate ISA Matures?

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Fixed Rate Cash ISA
Maturity and reinvestment options

Your Fixed Rate Cash ISA is maturing, so what's next?

If your Fixed Rate Cash ISA is approaching maturity (ending its fixed term) you may have a few questions about what happens next, and what actions you can take with your money. This is where we can help.

What you need to know

You'll receive a letter 14 days before maturity, stating your maturity date
If you already know you want to reinvest into another Fixed Rate Cash ISA, you can give us your instructions up to 30 days before your maturity date
Once your Fixed Rate Cash ISA completes its fixed term, we'll pay the interest you're due. The interest will not count towards your ISA allowance
You may still receive a welcome pack for the Loyalty Cash ISA, depending on the options you've selected, and how close to the maturity date we receive your instructions
If you choose not to reinvest your Fixed Rate Cash ISA, it will automatically convert to a Loyalty Cash ISA at maturity
The rate of a Loyalty Cash ISA can change at any time, and it wouldn't be fixed like your Fixed Rate Cash ISA

So what are your options?

You can choose from a range of options for what to do with your Fixed Rate Cash ISA balance.

You can reinvest your maturing Fixed Rate Cash ISA and subscribe up to an additional £20,000 (subject to eligibility). You can start the process via the HSBC mobile app up to 30 days before the maturity date[@reinvesting-on-the-mobile-app].

May be suitable for you if:

You want to confirm a new fixed rate prior to maturity
You don't need access to the money for up to 13 months

Make sure to refer to our reinvestment guidance before applying.

Find out more about Fixed Rate Cash ISA

If you choose not to reinvest your Fixed Rate Cash ISA it will automatically convert to an easy access Loyalty Cash ISA. Your money will then earn interest at the current HSBC Loyalty Cash ISA rate.

May be suitable for you if:

You want to combine existing HSBC Loyalty Cash ISAs
You want to maintain the tax-efficient benefits of a Loyalty Cash ISA
You want flexibility with your money, with access whenever you want without a fee

All savings accounts

If a cash ISA no longer suits your needs, you could consider moving your money into a stocks and shares ISA. A stocks and shares ISA is an account that you can use for your investments.

It's a tax-efficient way to potentially grow your investments because you can invest up to £20,000 in the current tax year without paying any UK income tax or capital gains tax on any income or growth. You can also have different ISAs at the same time with multiple providers, but you must stay within the total annual limit of £20,000 across all of your ISAs.

May be suitable for you if:

You're aiming to invest for at least 5 years, however you can get access to your money if you sell your investments
You want to maintain the tax-efficient benefits of an ISA

Remember, investing has its downs as well as ups – so you could get back less than you invest.

Available to customers with an HSBC current account. Other eligibility criteria and fees apply.

Find out more about stocks and shares ISA

You can access your money immediately by moving your money out of your ISA account. This could mean moving your money into a current account or a different savings account.

If you were to do this, you would lose the ISA tax benefits for this money.

Reinvestment guidance

To avoid paying an early closure fee when you reinvest, ensure you select 'Serve full notice period’. The rate you will receive will be the rate that's available at the point of application.

To reinvest, you can open a new Fixed Rate Cash ISA on our mobile app. You'll then have different options available to you depending on your needs and eligibility.

ISA transfer in

Selecting ‘ISA Transfer In’ will allow you to reinvest your existing funds. You can also select this option to transfer in funds held in Cash ISAs with other providers. To transfer funds you'll need to:

Put in your existing Fixed Rate Cash ISA sort code and account number
Select 'Previous' and 'Full' to reinvest the full amount plus interest, or
Select 'Previous' and 'Partial' from the transfer options to reinvest less than your maturity amount (if you select this option, you'll also need to select ‘Serve full notice period’ otherwise your reinvestment won’t be completed)

Subscribe (add money)

By selecting ‘Do you want to subscribe (add money)' you'll be able to add more funds to your new Fixed Rate Cash ISA. However, if you choose this option you won’t be able to re-invest the funds from your maturing Fixed Rate Cash ISA, unless you also select 'ISA Transfer In’.

Serve full notice period

By selecting ‘Serve full notice period’ your reinvestment will take place within 7 days of the date your fixed term ended.

Proceed immediately

By selecting ‘Proceed immediately’ the reinvestment will be completed within 7 days of your instruction.

If your Fixed Rate Cash ISA has not yet matured when you give us your instruction you'll be ending your existing Fixed Rate Cash ISA early and will be charged an early closure fee of up to 90 days interest. The interest earned could be less than if you waited until maturity.

Frequently asked questions

Reinvesting your Fixed Rate Cash ISA means to open a new Fixed Rate Cash ISA and transfer either the full (including interest), or a partial, amount from your existing Fixed Rate Cash ISA (minimum £500).

The rate you'll receive for your Fixed Rate Cash ISA will be the rate that is live on our website at the point of application.

All current tax year subscriptions (ie new money paid in this tax year) count towards your ISA allowance. Transferring in previous tax year subscriptions to your new Fixed Rate Cash ISA will not count towards your current tax year ISA allowance.

You can apply for a new Fixed Rate Cash ISA and reinvest up to 30 days before your existing Fixed Rate Cash ISA matures.

You can add more money to your new Fixed Rate Cash ISA within the first 30 days of your account opening. This is subject to not exceeding the £20,000 ISA allowance limit.

The minimum amount required to open a new Fixed Rate Cash ISA is £500. You can add money in 3 different ways:

Transfer in current and/or previous tax year ISA subscriptions
Current Year Subscriptions (deposits)
A combination of both transfers and subscriptions

Your preferred method of adding money must be chosen when opening the new Fixed Rate Cash ISA.

If you select 'Serve the full notice period' then your reinvestment will take place within 7 days of your existing fixed term ending and no fees will be charged.

If you select ‘Proceed immediately’ then your reinvestment will be completed within 7 days of your instruction. If your Fixed Rate Cash ISA has not yet matured when you give us your instruction, you will be ending your existing Fixed Rate Cash ISA early and will be charged an early closure fee of the lower of the interest earned on your account, or a maximum of 90 days’ interest.

Additional information

Tax-free means you don't have to pay UK income tax or capital gains tax on any interest or returns you earn.

Fixed Rate Cash ISA maturity and reinvestment

Your Fixed Rate Cash ISA is maturing, so what's next?

What you need to know

So what are your options?

Reinvest

Convert to a Loyalty Cash ISA

Consider investing

Transfer to another ISA provider[@transfer-your-isa-to-another-provider]

Reinvestment guidance

Select how to fund your account

Select when to proceed with your reinvestment

Frequently asked questions

What does it mean to reinvest my Fixed Rate Cash ISA?

What is the fixed rate that I'll receive for my Fixed Rate Cash ISA?

How does reinvesting affect my ISA allowance?

When and how much can I reinvest my Fixed Rate Cash ISA?

Do you charge any fees to reinvest my Fixed rate cash ISA?

Do I keep the same Fixed Rate Cash ISA account details when I reinvest?

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