HSBC launches Cash e-ISA at 6% AER

by Gill Montia

Story link: HSBC launches Cash e-ISA at 6% AER

HSBC has launched a new Cash e-ISA at a variable interest rate of 6% AER. Savers will need to apply online and require £1 to open their account.

However, the ISA is only available to existing HSBC customers, newcomers will need to first open an HSBC bank account.

No notice period is required on withdrawals and interest is paid monthly.

For those wishing to save regularly rather than invest a lump sum, a minimum £10 monthly contribution applies.

Transfers in are not available with this product and the minimum age for an account holder is 16.

Once the ISA is fully subscribed, amounts withdrawn cannot be reinvested until the 2009/10 tax year.

The rate compares with Alliance & Leicester’s (A&L) 6.25% Direct ISA Issue 4, which includes a 1.00% bonus payable to 31st May 2009. The minimum opening balance with A&L is also £1.

For the current tax year, the maximum tax-free cash saving allowance for an ISA has increased to £3,600.