HSBC Help to Buy: ISA
Get a 25% bonus on your savings
Save up to £200 per calendar month and you’ll receive a UK government bonus of 25% of your balance (maximum bonus of £3,000). Minimum balance of £1,600 applies.
Save more in your first month
Up to an additional £1,000 to kick start your savings
Make the most of your allowance by setting up a monthly standing order
No minimum to start
How much you begin with is up to you
The Help to Buy: ISA has now closed to new applicants. Here are some other savings accounts that could suit your needs:
Check out our Loyalty Cash ISA if you’re still interested in taking advantage of tax free savings.
Lock in a higher interest rate for 12 months with monthly contributions.
Key product information
How it works
Step 1 - Save up to £200 per calendar month, with the option of an additional £1,000 in the first month you make a subscription
Step 2 - Close your HSBC Help to Buy: ISA to receive a closing letter
Step 3 - Claim your 25% government bonus via a solicitor or conveyancer
Receiving the bonus
The bonus is paid by the Government to your solicitor or conveyancer and must be claimed within 12 months of closing your Help to Buy: ISA.
Your solicitor or conveyancer will add the bonus to your funds at completion of the property.
The bonus cannot be used for the deposit due at the exchange of contracts, nor can you use it to pay for your solicitor's or estate agent’s fees, or any other indirect costs associated with buying a home.
Things to consider
An ISA is a tax-efficient way of saving or investing, because all income and capital gains arising within it are exempt from personal liability to 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.
What is the account name?
Help to Buy: ISA
What is the interest rate?
|Up to £12,000||2.25% AER (2.23% tax free)
|Above £12,000||0.15% AER (0.15% tax free)
|Balance||Up to £12,000|
2.25% AER (2.23% tax free)
0.15% AER (0.15% tax free)
Interest is calculated daily and credited to the account monthly.
Balances up to £12,000 will earn the higher rate of interest. Only the part of the balance above £12,000 will earn the lower rate of interest.
Can HSBC change the interest rate?
Yes, the interest rate is variable. We can change the interest rate on this account, in line with the account's Terms and Conditions.
What would the estimated balance be after 12 months based on an initial deposit of £1,200 followed by 11 further monthly deposits of £200?
|Initial deposit||Monthly deposit||Deposit at end of 12 months||Interest rate||Balance at the end of 12 months|
||£3,400||2.25% AER (2.23% tax free)||£3,452|
|Deposit at end of 12 months||£3,400|
|Interest rate||2.25% AER (2.23% tax free)|
|Balance at the end of 12 months||£3,452|
For the purpose of these calculations, it is assumed:
- initial deposit of £1,200 in the month the account is opened
- 11 Further monthly deposits of £200
- no withdrawals
- no change to the interest rate during the 12 months
- excludes the 25% Government Bonus
- deposits made on the same day each month
Projection provided for illustrative purposes only and does not take into account individual circumstances.
How do I manage my account?
The Help to Buy: ISA has now closed to new applicants.
Eligibility criteria for holding an account is as follows:
- aged 16 years or over
- be resident in the UK for tax purposes, or if not so resident, be a Crown employee serving overseas, or be married to, or in a civil partnership with, such a person
- never have owned a residential property
- not have already subscribed to a cash ISA during the current tax year
- have a valid National Insurance Number
Minimum and maximum balance:
- no minimum deposit is needed to open an account in branch, by phone or by post. There’s a £1 minimum deposit for online applications.
- the maximum you can deposit is subject to the monthly Administrator Scheme Rules and annual subscription limits.
- you can make monthly deposits up to a maximum of £200 per month. However in the first month you can deposit an additional £1,000.
How to manage the account
You can manage the account via online banking, phone banking, in branch or by post.
Can I withdraw money?
Yes, you have instant access to your account. You can make as many fee free withdrawals as you like. However once you have paid in the maximum monthly allowance, any amount withdrawn cannot be replaced until the following calendar month.
If you withdraw funds from your ISA you will lose the associated tax benefits.
Any funds withdrawn before closing your Help to Buy: ISA will not count towards the Government Bonus.
A 30 day cancellation period applies to this account.
Interest is paid tax-free, that is free from UK Income Tax and Capital Gains Tax.
The value of tax benefits described depends on individual circumstances. The tax treatment of ISAs could change in the future.
A Government bonus of 25% is payable of the amount you save up to £12,000. The maximum bonus you can receive is £3,000.
The Help to Buy: ISA is a cash ISA. If you've subscribed to a Help to Buy: ISA, you won't be able to contribute to another cash ISA in the same tax year.
The maximum annual amount you can save in to a Help to Buy: ISA will be less than the maximum annual ISA limit.
- AER stands for Annual Equivalent Rate. This shows you what the gross rate would be if interest were paid and compounded each year.
- tax free from personal liability to any UK Income Tax and Capital Gains Tax.
- ISA stands for Individual Savings Account.
Information correct as at 1 December 2019.
How to transfer in
If you have an existing Help to Buy: ISA with another provider, you can easily transfer it into this one. Just complete and submit an HSBC Help to Buy: ISA form (PDF) to a local branch, or to the following address:
HSBC UK Bank plc
PO Box 6167
Please be sure to read the summary box and the documents below first. We also advise you to print or save a copy of these documents for ease of reference.
Before applying, please take the time to read the following documents. You may also want to save them for future reference.
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