HSBC UK revealed on Monday that it had lifted the interest rate on its Fixed Rate Cash ISA (FRISA) to 4.5 per cent, as rivalry in the savings sector intensifies and customers pursue better returns on their funds. The decision arrives at a crucial juncture for savers, with the conclusion of the tax year drawing near and ISA demand characteristically reaching its height.
With families placing increasing importance on ensuring their money delivers more value, HSBC stated the recent rise positioned it “among the most competitive high street providers for tax-efficient savings”.
Alongside the rate enhancement, HSBC UK is also providing a cash reward for eligible customers opening or transferring into an ISA, further benefiting those seeking to maximise their tax-free savings allowance. It has reminded customers of how the offer operates.
The tiered reward is determined by the total sum of new funds deposited during the offer window, which spans across tax years. 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.”
Following activation, customers are granted a 30-day window to deposit a minimum of £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 term, HSBC provides instant access alternatives, including a Loyalty Cash ISA.
