HSBC Cash ISA - CASH e-ISA

zaphan58

I currently have 5k sitting in a HSBC Cash ISA and am thinking of moving it.

From what I can see the Cash ISA is 4.17% and the Cash e-ISA 6.08% so I don't see why my money is sitting in the lesser account or even what the difference is between the two and which is best for me.

Can someone explain? All I can find on the HSBC site is this

HSBC also offers a Cash ISA which offers tiered interest rates, meaning the more you save, the more you earn.

Which I don't completely understand. I presume if I wanted to change the account HSBC would just do it for me.

RayWolfe

No, the Cash e-ISA is for new money only. Many banks do this.
If you are not going to put new money into an ISA this year, you could transfer £3,600 but that would use this years allowance.

cc004-2

RayWolfe wrote: »

No, the Cash e-ISA is for new money only. Many banks do this.
If you are not going to put new money into an ISA this year, you could transfer £3,600 but that would use this years allowance.

The HSBC e-isa is for new money only, so no transfers in from existing ISA's. However, you can transfer your existing low-rate HSBC ISA to another supplier. Transfering a previous years ISA does not use this years allowance, I believe RayWolfe has got this bit wrong or one of us has misread your post.

If you haven't paid/subscribed new money during this tax year, then you still have your £3,600 allowance of new money that you can save.
You can do this by 1 of the following: paying into your existing ISA, or opening a new HSBC cash-ISA at the higher rate, or a new cash ISA with a different supplier... If you have already paid in new money this tax year, you can only continue to pay into the same one until the next tax year starts, even if you transfer it.

Transfers are initiated by the supplier you're moving to, you'll need to fill in a transfer form with them to do this. Make sure you use the transfer procedure, don't close/open the accounts yourself, otherwise you loose the tax protection on your existing savings.

There's some good ISA posts on here about what you can/can't do. I'm sure it's made complicated so people don't bother.

Hope that helps (and I've got it correct)!?
CC.

RayWolfe

You can transfer from the low rate ISA to the e-ISA ... I've done it!
However it counts as part of this years ISA alowance.