Why are interest rates quoted for £15000+ by HSBC for ISAs?

kiwibrit

Looking at the HSBC, the headline e-ISA interest rate is shown as "up to 2.75%AER". However, digging a little deeper, I see that the rates are:

£15000+ - 2.75% AER
£9000+ - 2.10% AER
Up to £9000 - 1.75% AER

As I understand it, the maximum a new saver can deposit this FY is £5100 - so the rate applicable then is 1.75%AER. Has the e-ISA scheme been running long enough for the capital and interest saved to amount to £15000+?

rb10

It's been running since the late 1990s, so it's actually possible to have £50k+ in ISAs, if you've added your full allowance each year.

But whatever the balance, stay clear of the HSBC ISA ... the interest rates at all tiers are not particularly competitive.

opinions4u

Don't know.

But many people now have over £50k in cash ISAs that could, presumably, be transferred in.

kiwibrit

Thanks both - the e-Isa looked handy for someone who is disabled, but has an HSBC account, and so could have opened an HSBC ISA on line, as opposed to struggling into town to go to - say - Barclays.

Ifts

Including previous years ISA allowance + interest you could have built up a lot more than £15k (3 or 4 times that amount is possible) in your cash ISA.

If they are allowing transfers in of previous years ISA money then putting in £15K plus would not be a problem, however at them rates its not advisable, there are better rates on offer at the moment.

missile

kiwibrit wrote: »

Thanks both - the e-Isa looked handy for someone who is disabled, but has an HSBC account, and so could have opened an HSBC ISA on line, as opposed to struggling into town to go to - say - Barclays.

There are several providers who will accept online applications, e.g. Halifax and LLoyds TSB. You don't have to have an account with them.