Many HSBC customers get up to £868 for free | Personal Finance | Finance

Many HSBC customers could be up to £868 better off down the line just by moving some money into a new account – and then leaving it there. The global high street bank has launched an exclusive deal for its customers offering them the chance to make £868 for free with no tax to pay with its Fixed Rate Cash ISA. In a message on its website, HSBC says: “Tax-free savings, with a fixed rate for up to 13 months. For current account customers only. Fixed for up to 13 months: 4.00% AER (4.00% tax-free).

“Instant access: No, withdrawal restrictions and an early withdrawal fee may apply. We calculate interest daily and credit this at the end of the fixed term.” You can deposit £20,000 each year in a Cash ISA right now, until and unless the government changes the rules, as it has been heavily rumoured. 

But this is not yet confirmed and any such change is likely to be put in place after this financial year, if it is at all.

If you deposit the full £20,000 possible right now, and leave it in the account for 13 the full 13 months of the fix, you would be paid £868 in interest at the end of the fixed term, including compound interest.

If you paid in £10,000, you would be given £434, and for £5,000, you’d get £216, all free and free from any tax to pay.

Just be sure to make all the deposits you intend to fix at the start of the term when you open the account.

HSBC adds: “After the 30-day deposit window, no new money can be put into the ISA. This is unless it’s part of an existing transfer-in application that you’ve submitted within the 30-day deposit window.”

Because it’s a fixed Cash ISA, you can’t make any withdrawals during the fixed term, or you could be subject to an early withdrawal fee.

But the upside is that the rate of 4% is guaranteed throughout the entire term, even if rates fall across the market, you’ll keep your 4% rate.