A simples guide

What types of ISA does HSBC offer?

ISAs have changed the way we save, but they’re a complex world to the uninitiated and you need to compare the deals carefully before you commit.

Each bank offers a variety of different schemes and you need to choose wisely or you can find your money locked up for five years when you really needed a flexible plan.

The very nature of an ISA means that you are committing to leaving the money with the bank to earn a return. If you choose the right one then you’ll get a great return on your investment. Here are HSBC’s big hitters.


What ISAs and rates are available at HSBC?

Nothing is set in stone and the HSBC ISA interest rates depend on the Base Exchange Rate and a number of other variables. As at 19 April 2016, the main HSBC ISA rates are:

- Help to Buy ISA: This comes with an annual rate of 2.0% (variable) up to £12,000

- HSBC Premier Loyalty – 1.3% AER with 1.29% tax free.

- HSBC Premier Standard – 0.5% AER tax free.

- HSBC Advance Loyalty - 1.2% AER with 1.19% tax free.

- HSBC Advance Standard – 0.5% AER tax free.

- HSBC Loyalty – 1.10% AER with 1.09% tax free.

- HSBC Standard: 0.50% AER tax free.

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What HSBC ISA should I use if I am a first time buyer saving for a deposit?

It’s tough to save for a deposit on a house so it might take a few years and the Help to Buy ISA was designed with this in mind. It will help you save for a deposit over the long term and the UK government will give you 25% of the amount you save, up to £3000, as part of the Help to Buy initiative.

With a Help to Buy ISA you can save £200 every month and the interest is tax free, which should give you a serious leg up on to the property ladder. You can even save £1000 in the first month to get you started, although there is no minimum payment and you can simply save what you can afford.

So this is the ISA you need if you’re thinking about buying a property somewhere down the line.

What is the HSBC Cash ISA (Loyalty ISA)?

A HSBC Cash ISA is a flexible way to save and earn interest without locking your money away. If you need to withdraw funds then you can access your money at any time.  The ISA rules changed this year so that if you want to take money out and put it back later in the year, you won't lose any of your tax-free entitlement...

You can open an account in just a few minutes at your local branch or online. HSBC apply a Loyalty Rate which applies for 12 months from the date of each payment into your ISA. If you make further payments into your ISA, your Loyalty Rate period will begin again from the date of each payment. Upon the expiry of your Loyalty Rate period, you will earn a standard rate of interest until you make a further payment.

The variable Loyalty Rate can alter with the base interest rate or at the bank’s discretion.

Should I get my ISA with HSBC?

Even if you are an existing HSBC customer for your other banking affairs, this doesn’t necessarily mean that you need to stay with them for your ISA. At the time of writing Halifax offered a Help to Buy ISA with a 4% rate, Virgin Money offered 3% and Barclays had a deal at 2.25%.**

That can change at any time. So do a thorough comparison of the price and conditions before you commit to an HSBC Loyalty ISA or any of the other ISAs. Now you know what you’re looking for, it’s time to compare the market. So don’t delay, check out the best deals on our site today and see how much you could save.

**All ISA rates quoted are based on information provided on which.co.uk data on 1 December 2015


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