PARIS: HSBC is offering its current account customers the chance to earn extra interest on money they tuck away in a cash Isa.
“Advance” bank account customers can get a rate of 1.5pc when they open a “Loyalty Cash Isa”, plus an extra £10 every month for the first 12 months, if they pay at least £25 into the Isa each month.
Customers who would prefer to deposit a lump sum into the Isa can do so, and will still receive the £10 bonus each month so long as they maintain a balance of at least £300 over the 12 month term.
The £10 monthly payments will not contribute towards the customer’s annual Isa allowance. Previous years’ Isas are accepted.
HSBC’s Loyalty Cash Isa is available to all HSBC customers, and pays between 1.4pc and 1.6pc depending on whether a customer has a “Premier” current account, “Advance” account or other type of current account.
The new element is the £10 a month that will be paid to Advance customers, who earn 1.5pc.
The Isa rate alone is highly attractive. The top easy-access Isa on the market is NS&I’s “Direct Isa” paying 1.5pc, so HSBC’s offer sits comfortably alongside this best-buy account.
Factor in the monthly payments and its an extra £120 over the 12 month period on top of any interest made on their Isa deposit.
While the Advance bank account doesn’t have any monthly fees, customers will have to pay in at least £1,750 per month to be eligible for the account. With such a high monthly requirement, the account will only suitable for those with higher incomes.
The offer is only available once, so after 12 months the £10 monthly payments will cease.
The 1.5pc Isa rate also applies for 12 months. After the first year, customers will have to deposit £1 every 12 months in order to renew the rate. Doing that, however, will mean you won’t be able to open another cash Isa at another bank or building society in that financial year.
It’s worth noting that HSBC, and its subsidiary First Direct, already offer some of the highest rates on the market for “regular savings” accounts to existing customers. First Direct offers 6pc on its regular saver, while HSBC pays 4pc. Advance current account customers can get a rate of 6pc.
