The delay is down to huge demand after the bank launched a new switching deal for ISAs
HSBC customers have been hit with long delays after trying to transfer ISA savings.
The delay is down to huge demand after the bank launched a new switching deal. HSBC offered £150 cashback to customers who deposited at least £20,000 to an ISA.
The cashback was £250 for those adding between £50,000 and £99,999, and £500 for those depositing £100,000 or more. One saver told the Telegraph she instructed a transfer of £70,500 on April 8 and is still waiting for access to her funds.
She said: “It is a lot of money not to be able to access in case of an emergency.”
It should take 15 working days for transfers between cash ISAs or 30 calendar days for other types of transfer, such as stocks and shares ISAs. Other HSBC customers have also been complaining on social media.
One asked: “Why is your ISA transfer process taking so long? I’ve been waiting over a month.” Another commented: “On 7 April I opened a fixed rate ISA with @HSBC. Nearly 2 months later & transfer from old ISA still hasn’t happened.”
In reply to one customer, HSBC confirmed it is experiencing a backlog of ISAs waiting to be opened. HSBC has said that any money waiting to be transferred is safe, and any missed interest will be applied.
Customers will also still get the relevant cashback bonus once their ISA has been opened.
An HSBC UK spokesman said: “We’re currently experiencing higher than usual Isa transfer volumes following strong demand for our savings products, which regrettably means some transfers are taking longer than expected to complete.
“Customers can be assured that they will continue to earn interest during the transfer process, and do not need to take any further action at this time.”
What is an ISA?
An ISA a type of savings account where you don’t pay tax on any interest you make. For other saving accounts, you have to pay tax on your interest when you earn above a certain amount.
You can earn up to £1,000 in savings interest every tax year if you’re a basic-rate taxpayer before you start to pay tax. This is known as your personal savings allowance.
The threshold is lower at £500 for higher-rate taxpayers, while additional rate taxpayers don’t get any personal savings allowance at all. You start to pay tax on your savings interest once you earn more than these amounts in interest on your savings.
The main types of ISAs are cash ISAs, stocks and shares ISAs, Lifetime ISAs, and innovative finance ISAs. Children have their own version called Junior ISAs.
You can save up to £20,000 across any ISA accounts you may have – however, some ISAs have lower limits. For example, you can only save £4,000 into a Lifetime ISA every tax year.
