Savings

Cash ISA

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A simple, tax-free way to save

Cash ISA - rates from 1.30% AER (1.29% tax-free) to 1.50% AER (1.49% tax-free) variable depending on your balance.

It's important to save for the future, and no matter what you're saving for, our Cash ISA could really help you maximise your allowance with 1.30% AER (1.29% tax-free) variable for balances as little as £1. This goes right up to 1.50% AER (1.49% tax-free) variable for balances of £30,000 or more. Tax-free interest, instant access to your money and an online application make our Cash ISA a simple way to save.

  • tax free interest
  • interest is calculated daily and applied monthly
  • instant access by a transfer to another first direct account
  • transfers from other providers allowed
  • apply online, by post or phone for an application form. Once opened manage online, by post or by telephone.

Help to Buy: ISA - Important Information

From 6 April 2015, subscribing to a first direct Cash ISA may affect your eligibility to subscribe to a Help to Buy: ISA in the same tax year.

On 18 March 2015, Chancellor George Osborne announced the Help to Buy: ISA within the 2015 Budget. We want customers who are considering opening a Help to Buy: ISA to be aware of the above, whilst we are awaiting complete details from HMRC.

A brief introduction to ISAs

A cash ISA is a way of saving or investing without paying tax on your earnings, since all income and capital gains arising within an ISA are exempt from any personal liability to UK income tax and capital gains tax. A payment by you into an ISA in any tax year is called a subscription. The overall ISA subscription limit in the current Tax Year is £15,240 for anyone eligible to invest in an ISA. This can be saved in a cash ISA with one provider, a stocks and shares ISA with the same or different provider, or any combination of the two. See How much can I save? for more information on subscriptions limits.

There are two types of ISA - a stocks and shares ISA, and a cash ISA. We offer both, but you can only take out one of each per year.

All ISA providers are required to report details of ISA subscriptions made by their customers to HM Revenue & Customs (HMRC) so that HMRC can check that individuals do not exceed the limits.

ISAs may be transferred to another ISA with the same or a different ISA provider (note - not all cash ISAs accept transfers in and some providers may impose a charge for transferring an ISA out). When an ISA is transferred in this way, any amount transferred from previous years' allowances are not classed as subscriptions and therefore do not count towards the subscription limits explained above. Previous years allowances do not need to be transferred in full, they may be split between different providers. Any amount being transferred from the current tax year, however must be transferred as a whole and will count towards your current year subscription allowance. You may transfer a cash ISA to a stocks and shares ISA and transfer a stocks and shares ISA to a cash ISA. Where you are transferring in a stocks and shares ISA, your stocks and shares ISA manager will, after receiving the instruction to transfer, sell your shares and make the transfer in cash.

As a result, there may be a loss of income or interest whilst the transfer is being made.

That means you can transfer any ISA balances to us, held with other providers, from previous or current tax years.

If you already have a Cash ISA, but haven't subscribed to it in the last tax year (6 April 2014 - 5 April 2015), you won't be able to subscribe in the current tax year (6 April 2015 - 5 April 2016). To reactivate your ISA and make further subscriptions, please download the Cash ISA reactivation form .

The value of investments (and any income received from them) can fall as well as rise and you may not get back what you invested. For some investments this can happen as a result of exchange rate fluctuations as shares and funds may have an exposure to overseas markets.

You should plan to invest over the medium to long term, at least five years as a minimum.

The value of tax treatment will depend on your individual circumstances and may be subject to change in the future.

 

Cash ISA at a glance

Our Cash ISA lets you enjoy tax-free growth and instant access to your money if you need it. This information will give you a better idea of what's involved - though please make sure you read the Interest Rates and Charges and
Key facts and Terms and Conditions before you apply.

Our downloads are in a PDF format. To read them you'll need to have Adobe Reader 4.0™ or above. It's free and you can get Adobe Reader here.

 

Cash ISA rates

Rates are variable

Balance AER Tax free
£1 - £14,999 1.30% 1.29%
£15,000 - £29,999 1.40% 1.39%
£30,000+ 1.50% 1.49%

 

Summary box and Key Product Information
Account Name

Cash ISA.

Interest rates

Tiered interest rates on balances above £1.

Interest calculated daily and applied monthly.

see our interest rates and charges information for full details

Tax status

ISAs are free from personal liability to any UK Income Tax and Capital Gains Tax.

Conditions for bonus payment

No bonus payments on this account.

Withdrawal Arrangements

Charge free instant withdrawals can be made by transfer to another first direct account in your name, over the phone or via Internet Banking. Transfers to other banks may take longer.

Access

The account can be applied for online or by post and can be managed online, by post or by telephone.

 

Other things you should know

 

How much can I save?

Because of their tax advantages ISAs are subject to annual subscription limits. The overall ISA subscription limit in the current Tax Year is £15,240 for anyone eligible to invest in an ISA. This can be saved in a cash ISA with one provider, a stocks and shares ISA with the same or different provider, or any combination of the two. However, once you've paid in your annual subscription limit to a cash ISA, a stocks and shares ISA or a combination of the two, any amount withdrawn cannot be reinvested until the following Tax Year.

You can also transfer into your cash ISA:

  • any cash ISA balances held with us or with other providers from previous or current tax years; and
  • any stocks and shares ISA balances held with us or with other providers from previous or current tax years (your stocks and shares ISA manager will, after receiving the instruction to transfer, sell your units and transfer in cash to us). As a result of this transfer being made in cash, there may be a loss of income or interest whist the transfer is being made.

There are no maximum limits on the amount that can be transferred.

You can only subscribe to one cash ISA and one stocks and shares ISA in a Tax Year. Any amount subscribed to one type of ISA will reduce the overall ISA allowance that can be subscribed to the other ISA type.

There are no maximum limits on the amount that can be transferred from cash ISAs or from stocks and shares ISAs.

You can only subscribe to one cash ISA and one stocks and shares ISA in a Tax Year. Any amount subscribed to one type of ISA will reduce the overall ISA allowance that can be subscribed to the other ISA type.

The value of investments (and any income received from them) can fall as well as rise and you may not get back what you invested. For some investments this can happen as a result of exchange rate fluctuations as shares and funds may have an exposure to overseas markets. You should plan to invest over the medium to long term, at least five years as a minimum.

The value of tax treatment will depend on your individual circumstances and may be subject to change in the future.

How to apply

You can apply online, by post or via our Banking on the go App.

To apply for a Cash ISA, you must already hold a first direct current account - our 1st Account.

If you are already a first direct customer you can apply for a Cash ISA online by selecting the 'Apply' button on this page, by post, or via our Banking on the go App.

If you are not currently a first direct customer, please call 0800 24 24 24 or 03 456 00 24 24.

How to manage my account

Once opened you can manage your account online, by post, by telephone or via our Banking on the go App.

What else should I know?

You need to be over 18 and a UK resident.

Definitions

AER stands for Annual Equivalent Rate. This shows you what the gross rate would be if interest were paid and compounded each year.

Gross is the interest rate before the deduction of tax applicable to interest on savings accounts.

Tax-free free from personal liability to any UK Income Tax and Capital Gains Tax.

 

The value of the tax benefits described depends on individual circumstances. The tax treatment of ISAs could change in the future.

 

Apply

 

 

How to apply for a Cash ISA

Already a customer?

You can apply online through your Internet Banking. As you're currently logged in, just select Apply online from the left hand menu within Internet Banking

Log on to apply

Once you've logged on to Internet Banking, just select 'apply online', in the left hand menu, and choose the 'Cash ISA' option.

If you haven't yet registered for Internet Banking, simply click on the link below and follow the on-screen instructions.

Please note: You will need to have registered for telephone banking before you can access Internet Banking. You can do this by calling us on 03 456 100 100.

Register for Internet Banking

You can request an application to open a Cash ISA for the current Tax Year over the telephone.

Not yet a customer?

To open a Cash ISA you will also need to open a first direct 1st Account, our current account.

Learn more about the 1st Account

You can also talk to us anytime on:
03 456 00 24 24
or
0800 24 24 24

Protecting your money

Your eligible deposits with HSBC Bank plc are protected up to the FSCS compensation limit by the Financial Services Compensation Scheme, the UK's deposit protection scheme. Most deposits are covered by the scheme. This limit is applied to the total of any deposits you have with HSBC and first direct.

On 3 July 2015, the Prudential Regulation Authority announced changes to the compensation limit. For those depositors covered by the FSCS prior to 3 July, (individuals and small companies) their limit of £85,000 will be maintained until 31 December 2015. After that it will change to £75,000.

Any deposits you hold above the FSCS compensation limit are unlikely to be covered, unless under specific circumstances, as determined by the FSCS.

For more information on the scheme, please select the links below to view the FSCS poster and leaflet or visit the FSCS website at www.fscs.org.uk

 

 

 

 

 

Our downloads are in a PDF format. To read them you'll need to have Adobe Reader 4.0™ or above. It's free and you can get Adobe Reader here.