Removal of all introductory bonus rates from HSBC savings and ISAs
HSBC has launched a new Loyalty Cash ISA, which will give customers HSBC’s best possible on sale ISA rate (currently 1.4 – 1.6 per cent AER variable depending on type of current account held) for twelve months each time they top up their account.
Top ups of one pound or more will secure the loyalty interest rate for a further twelve months and earn interest tax free on the customer’s entire cash ISA balance.
Customers can transfer funds into the Loyalty ISA from existing cash ISAs held with HSBC or any other provider and HSBC will be writing to its existing cash ISA customers inviting them to do so. The Loyalty Cash ISA is only available to customers who have an HSBC current account or choose to open one.
When customers near the end of their twelve month period, HSBC will notify them to top up their account to secure the best rate. Furthermore, HSBC will write to Loyalty Cash ISA customers every 6 months to confirm their current rate and whether they have fully utilised their cash ISA allowance.
HSBC has also removed introductory bonus rates from its savings accounts and ISAs to ensure simple and transparent pricing for its customers.
Oliver Cook, Head of Savings at HSBC, said:
“Our customers have told us they always want to receive the best rate we have on offer, without having to switch ISAs every year. We’ve created an ISA that rewards customers for their loyalty; securing our best rate on their whole balance for twelve months each time they pay in. Removing introductory bonus rates together with our new Loyalty ISA offers our savings customers the peace of mind that their savings will always be working hard for them.”
For comparison, based on the maximum annual cash ISA allowance of £5,760 being saved each year, an HSBC customer would earn £96 – £167 more interest over three years (depending on the current account they held) than if they were to do the same with the top ISA rate on the market, which includes a fixed bonus for the first 12 months.
Customers can apply for the Loyalty ISA online, by telephone, post or in any HSBC branch.
When the 12 month Loyalty rate period finishes, the customer will earn a standard interest rate, currently 0.5% AER variable. They will earn the standard rate until they make a further payment to their ISA, when they will then earn the Loyalty rate for 12 months.