What is the best HSBC Fixed Rate ISA?

What is HSBC’s best Fixed Rate ISA?

HSBC currently offers only one Fixed Rate ISA, which offers 4.00% AER (fixed) for up to 13 months. It’s only available for existing customers with an HSBC UK Current Account. If you’ve already opened or paid into another cash ISA with HSBC or First Direct in the current tax year, you’ll need to complete an ISA transfer or wait until the following tax year.

Remember that high street banks don’t always offer the most competitive rates, so it’s a good idea to compare ISAs from modern providers too. By comparing the top Fixed Rate ISAs on the market, you can reach your savings goals sooner and reduce the impact inflation has on your money. 

What are the current HSBC Fixed Rate ISAs?

HSBC currently offers only one Fixed Rate ISA, its Fixed Rate Cash ISA offering 4.00% AER (fixed) interest. As this is a fixed-rate account, you’ll need to agree to lock away your money for a fixed period of up to 13 months. If you withdraw your funds before the end of this period, you may have to pay an early closure fee worth up to 90 days’ interest.

HSBC’s Fixed Rate Cash ISA isn’t a flexible ISA, so if you use your full £20,000 ISA allowance and make a withdrawal, you’ll need to wait until the following tax year to make more ISA contributions. At the end of your fixed term, HSBC will convert your Fixed Rate Cash ISA into a Loyalty Cash ISA, which offers a lower interest rate, and as it’s variable, it can change over time. 

Source: HSBC Cash ISAs. Rates accurate as of May2025.

Can I withdraw money from a HSBC Fixed Rate ISA?

Yes, you can withdraw your money from a HSBC Fixed Rate Cash ISA, but you must withdraw the full amount, as your account will automatically be closed by withdrawing your funds. You may be subject to an early closure fee if you close your account after the 30-day cooling-off period. The fee will be calculated based on the amount of interest you’ve earned on your account or a maximum of 90 days’ interest, whichever is lower. 

Can I transfer money into an HSBC Fixed Rate ISA?

Yes, you can transfer money into an HSBC Fixed Rate ISA. Remember that if you’d like to transfer to a HSBC Fixed Rate ISA, ask HSBC to complete the process for you, as withdrawing funds from your ISAs yourself can affect their tax-free status and your ISA allowance. 

How to find the best Fixed ISA Rates

There are plenty of Fixed Rate ISAs to choose from, with many high-street banks offering them to new and existing customers, many without conditions like you having to have a current account with them to be eligible. Opening an ISA with the provider you currently bank with can seem like the easiest option, but you may get a higher interest rate and better customer service elsewhere. 

To find the right Fixed Rate ISA for you, compare multiple accounts from different providers before making a decision. The interest rate is important, but look for a provider with excellent reviews and intuitive savings features too. Once you’ve found the right one, you can usually open an account and make a deposit quickly.