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HSBC Help to Buy: ISA

Bring your first home a step closer with a 25% savings bonus
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HSBC Help to Buy: ISA

Save with the HSBC Help to Buy: ISA and you could fast-track your way to purchasing your first home.
  • Get a 25% bonus on your savings 

    Save £200 per calendar month and you’ll receive a UK government bonus of 25% of your balance, to a maximum of £3,000

  • Save more in your first month 
    Up to an additional £1,000 to kick start your savings
  • Regular savings
    Make the most of your allowance by setting up a monthly standing order
  • No minimum to start 

    How much you begin with is up to you 

Open a HSBC Help to Buy: ISA today

Please read the important product information and check eligibility before you apply.

help to buy logo

Key product information

How it works

Step 1 - Open an HSBC Help to Buy: ISA by branch, telephone or post

Step 2 - Save up to £200 per calendar month, with the option of an additional £1,000 in the first month you make a subscription

Step 3 - Close your HSBC Help to Buy: ISA to receive a closing letter

Step 4 - Claim your 25% government bonus via a solicitor or conveyancer

 

Receiving the bonus

The bonus is paid by the Government to your solicitor or conveyancer and must be claimed within 12 months of closing your Help to Buy: ISA.

Your solicitor or conveyancer will add the bonus to your funds at completion of the property.

The bonus cannot be used for the deposit due at the exchange of contracts, nor can you use it to pay for your solicitor's or estate agent’s fees, or any other indirect costs associated with buying a home.

Things to consider

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

The value of the tax benefits described depends on individual circumstances. The tax treatment of ISAs could change in the future.

 

Summary box

          

Question

Answer

What is the account name?

Help to Buy: ISA

What is the interest rate?

Interest Rate on balances up to £12,000: 2.25% AER (2.23% tax free)

Interest Rate on balances above £12,000: 0.15% AER (0.15% tax free)

 

Interest is calculated daily and credited to the account monthly.

Balances up to £12,000 will earn the higher rate of interest. Only the part of the balance above £12,000 will earn the lower rate of interest.

Can HSBC change the interest rate?

Yes, the interest rate is variable. We can change the interest rate on this account, in line with the account's Terms and Conditions.


What would the estimated balance be after 12 months based on an initial deposit of £1,200 followed by 11 further monthly deposits of £200? 

Total Deposits after 12 months: £3,400

Interest rate on Total Deposits after 12 months: 2.25% AER (2.23% tax free)

Balance at the end of 12 months: £3,452

 

For the purpose of these calculations, it is assumed:

  • Initial deposit of £1,200 in the month the account is opened
  • 11 Further 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 open & manage my account?

Eligibility:

  • Aged 16 years or over
  • Be resident in the UK for tax purposes, or if not so resident, be a Crown employee serving overseas, or be married to, or in a civil partnership with, such a person
  • Never have owned a residential property
  • Not have already subscribed to a cash ISA during the current tax year
  • Have a valid National Insurance Number

 

How to open the account:

  • Existing HSBC customers can open an account via Telephone Banking, Online Banking, in branch or by post. New customers can apply in branch only.
  • Or you can transfer current or previous years subscriptions by completing an ISA transfer form

 

Minimum/Maximum Balance:

  • No minimum deposit to open an account in branch, by telephone or by post. £1 minimum deposit for online applications
  • The maximum you can deposit is subject to the monthly UKAR Scheme Rules and annual subscription limits

 

Regular Deposits:

  • You can make monthly deposits up to a maximum of £200 per month. However in the first month you can deposit an additional £1,000.

 

How to manage the account

  • Once opened you can manage the account via Online Banking, Telephone Banking, in branch or by post

Can I withdraw money?

Yes, you have instant access to your account. You can make as many fee free withdrawals as you like. However once you have paid in the maximum monthly allowance, any amount withdrawn can not be replaced until the following calendar month.

If you withdraw funds from your ISA you will lose the associated tax benefits.

Any funds withdrawn before closing your Help to Buy: ISA will not count towards the Government Bonus.

Additional Information

A 30 day cancellaton period applies to this account.

Interest is paid tax-free, that is 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.

The Help to Buy: ISA is a cash ISA. If you open a Help to Buy: ISA , you will not be able to open another cash ISA in the same tax year.

The maximum annual amount you can save in to an Help to Buy: ISA will be less than the maximum annual ISA limit.

 

Definitions

  • AER stands for Annual Equivalent Rate. This shows you what the gross rate would be if interest were paid and compounded each year.
  • Tax free free from personal liability to any UK Income Tax and Capital Gains Tax.
  • ISA stands for Individual Savings Account.

Rates correct as at 03.09.2018

 

Summary box

          

Question

What is the account name?

Answer

Help to Buy: ISA

Question

What is the interest rate?

Answer

Interest Rate on balances up to £12,000: 2.25% AER (2.23% tax free)

Interest Rate on balances above £12,000: 0.15% AER (0.15% tax free)

 

Interest is calculated daily and credited to the account monthly.

Balances up to £12,000 will earn the higher rate of interest. Only the part of the balance above £12,000 will earn the lower rate of interest.

Question

Can HSBC change the interest rate?

Answer

Yes, the interest rate is variable. We can change the interest rate on this account, in line with the account's Terms and Conditions.

Question


What would the estimated balance be after 12 months based on an initial deposit of £1,200 followed by 11 further monthly deposits of £200? 

Answer

Total Deposits after 12 months: £3,400

Interest rate on Total Deposits after 12 months: 2.25% AER (2.23% tax free)

Balance at the end of 12 months: £3,452

 

For the purpose of these calculations, it is assumed:

  • Initial deposit of £1,200 in the month the account is opened
  • 11 Further 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.

Question

How do I open & manage my account?

Answer

Eligibility:

  • Aged 16 years or over
  • Be resident in the UK for tax purposes, or if not so resident, be a Crown employee serving overseas, or be married to, or in a civil partnership with, such a person
  • Never have owned a residential property
  • Not have already subscribed to a cash ISA during the current tax year
  • Have a valid National Insurance Number

 

How to open the account:

  • Existing HSBC customers can open an account via Telephone Banking, Online Banking, in branch or by post. New customers can apply in branch only.
  • Or you can transfer current or previous years subscriptions by completing an ISA transfer form

 

Minimum/Maximum Balance:

  • No minimum deposit to open an account in branch, by telephone or by post. £1 minimum deposit for online applications
  • The maximum you can deposit is subject to the monthly UKAR Scheme Rules and annual subscription limits

 

Regular Deposits:

  • You can make monthly deposits up to a maximum of £200 per month. However in the first month you can deposit an additional £1,000.

 

How to manage the account

  • Once opened you can manage the account via Online Banking, Telephone Banking, in branch or by post

Question

Can I withdraw money?

Answer

Yes, you have instant access to your account. You can make as many fee free withdrawals as you like. However once you have paid in the maximum monthly allowance, any amount withdrawn can not be replaced until the following calendar month.

If you withdraw funds from your ISA you will lose the associated tax benefits.

Any funds withdrawn before closing your Help to Buy: ISA will not count towards the Government Bonus.

Question

Additional Information

Answer

A 30 day cancellaton period applies to this account.

Interest is paid tax-free, that is 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.

The Help to Buy: ISA is a cash ISA. If you open a Help to Buy: ISA , you will not be able to open another cash ISA in the same tax year.

The maximum annual amount you can save in to an Help to Buy: ISA will be less than the maximum annual ISA limit.

 

Definitions

  • AER stands for Annual Equivalent Rate. This shows you what the gross rate would be if interest were paid and compounded each year.
  • Tax free free from personal liability to any UK Income Tax and Capital Gains Tax.
  • ISA stands for Individual Savings Account.

Rates correct as at 03.09.2018

 

 

 

 

 

How to apply

Apply online

Registered for online banking?
Simply apply online for our HSBC Help to Buy: ISA using online banking.

 

Not registered yet?
If you’re already an HSBC customer, you need to register for online banking to apply online.

Premier customers
Call us on 03457 70 70 70

Lines are open from 8am to 10pm every day.

How to transfer in

If you have an existing Help to Buy: ISA with another provider, you can easily transfer it into this one. Just complete and submit a HSBC Help to Buy: ISA form (PDF) to a local branch, or to the following address:

HSBC Bank plc
PO Box 6167
Coventry
CV3 9HL


Please be sure to read the summary box and the documents below first. We also advise you to print or save a copy of these documents for ease of reference.

Additional information

Before applying, please take the time to read the following documents. You may also want to save them for future reference.

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Find out how much you could borrow with a mortgage. Your home may be repossessed if you do not keep up repayments on your mortgage.

Find out more about tax efficient savings and how to make the most of your ISA allowance.

Frequently Asked Questions

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