The bank made an announcement on Monday
HSBC UK said on Monday that it had raised the interest rate on its Fixed Rate Cash ISA (FRISA) to 4.5 per cent, as competition in the savings sector intensifies and customers look for better returns on their cash. The decision arrives at a crucial time for savers, with the end of the tax year drawing near and ISA demand usually reaching its height.
With households putting greater focus on maximising their money, HSBC said the latest rise placed it “among the most competitive high street providers for tax-efficient savings”.
In addition to the rate rise, HSBC UK is also providing a cash incentive for eligible customers opening or transferring into an ISA, further benefiting those wanting to maximise their tax-free savings allowance. It has reminded customers of how the offer works.
The tiered incentive is determined by the total amount of new funds added during the offer period, which runs cross-tax year. Those depositing between £20,000 and £49,999 will receive £150 into their HSBC current account.
Those depositing between £50,000 and £99,999 will receive £250 into their HSBC current account and those depositing £100,000+ will receive £500.
Lloyd Robson, head of savings at HSBC UK, said: “We know our customers are increasingly focused on getting more from their savings, particularly as we approach the end of the tax year. By increasing the rate on our Fixed Rate ISA to 4.5 per cent, alongside our ISA incentive, we’re providing a competitive, tax-efficient option that helps customers grow their money both pre- and post- tax year end.”
After opening, customers have 30 days to deposit at least £500 into the account and they also have the option to transfer in previous ISAs. Should customers require access to their funds during the fixed rate period, HSBC provides instant access alternatives, including a Loyalty Cash ISA.
