Cash ISA

Make the most of your tax-free allowance with a Cash ISA.

What's all the fuss about?

  • tax free interest 2.70% AER (2.67% tax free) variable

  • save between £1 and £20,000 this tax year

  • instant access by a transfer to a first direct 1st Account

  • you can transfer to us from other providers.

All things tax

If you are over 18 and eligible to subscribe, you can save up to £20,000 this tax year in an ISA without paying Income Tax or Capital Gains Tax on the interest.

 

The maximum amount you can deposit in an ISA is subject to annual subscription limits. The annual subscription limit for the current tax year is £20,000. From 6th April 2024, for customers aged 18 and over, ISA regulations allow this to be saved in multiple cash ISAs, multiple stocks and shares ISAs, multiple innovative finance ISAs* or up to £4,000 into one lifetime ISA* with either the same or different providers in the same tax year.

 

Customers aged 18 or over, will only be able to subscribe to one type of cash ISA and one type of stocks and shares ISA in the same tax year with either first direct or HSBC. However, even if they subscribe to an ISA with first direct (or HSBC) they will still be able to subscribe to ISAs with other ISA providers (subject to eligibility and availability).

 

*first direct do not currently offer an innovative finance ISA or a lifetime ISA.

 

There are changes to the ISA regulations from the 6 April 2024. For more information read our ISA reform FAQs (PDF).

Who can apply?

Probably you! You just need to be 18 years and hold a first direct 1st Account, our current account.

 

Available to UK residents, UK residents for Tax Purposes or non-resident UK Crown Servants (or the non resident spouse/civil partner of one)

Summary box

Account Name Cash ISA
What is the interest rate?

Current Rate

Balance Interest rate
All balances 2.70% AER (2.67% tax-free)

Interest is variable, calculated daily and credited monthly.
Can first direct change the interest rate? Yes. The account pays a variable rate of interest, which means it can change over time. The first direct cash ISA Terms and Conditions explain when and how we do this. For example, we might review the interest rate if the Bank of England base rate changes.
What would the estimated balance be after 12 months based on a £1,000 deposit?
Initial deposit Interest rate Balance at end of 12 months
£1,000 2.70% AER (2.67% tax-free) £1,027.00
For the purpose of this calculation it is assumed:-

 

  • initial deposit of £1,000
  • no additional deposits
  • no withdrawals
  • the interest rate remains the same during the 12 months.
Projection provided for illustrative purposes only and does not take into account individual circumstances.
How do I open & manage my account?

Eligibility:

  • you must hold a first direct 1st Account, our current account
  • be aged 18 years or over
  • in addition, in order to subscribe you need to be resident in the UK for tax purposes, or if not so resident, be a UK Crown employee serving overseas, or be married to, or in a civil partnership with, such a person.

How to open the account:

  • this account can only be opened in a sole name.
  • open an account via Online Banking, or by post
  • or you can transfer current and/or previous tax years' subscriptions by completing an ISA transfer form.

Minimum/Maximum Balance:

  • a minimum of £1 must be deposited to open the account
  • The overall ISA subscription limit is £20,000 for the current tax year, within this the Lifetime ISA has it's own annual payment limit (currently £4,000). You can only subscribe to one type of cash ISA and one type of stocks and shares ISA in the same tax year across HSBC and first direct
  • no maximum balance.

How to manage the account:

  • once opened you can manage your account via Online Banking, through our App or by phone. 
Can I withdraw money?

Yes, you have instant access to your account. You can make as many fee free withdrawals as you like. However, any amount you have paid into your ISA will count towards your annual ISA subscription limit even if you later withdraw it.

If you withdraw funds from your ISA you will lose the associated future tax benefits.
Additional Information
  • a 30-day cancellation period applies to this account.
  • interest is paid tax-free, that means it is paid free from UK Income Tax and Capital Gains Tax
  • the value of tax benefits provided by a cash ISA depend on your personal circumstances and tax rules may change in the future.

Definitions

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

Information correct as of 02 October 2024

Before you apply

Ready to apply?

To apply, simply:

  1. Log on to Online Banking
  2. Select 'Products' from the left hand menu
  3. Select ‘Cash ISA'.
Log on to Online Banking

New to first direct? You need to be a 1st Account holder to get access to this product. Find out more about our 1st Account.

Your eligible deposits with HSBC UK Bank plc are protected up to a total of £85,000 or up to £170,000 for joint accounts, by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme.

This limit is applied to the total of any deposits you have with the following: HSBC UK Bank plc and first direct. Any total deposits you hold above the limit between these brands are unlikely to be covered.

fscs logo: protecting your money