Don’t lose it: Millions of Brits wasting tax-free savings as HSBC UK offers 4.5%+ ISA boost
New research from HSBC UK reveals although more than half of Brits (54%) are committed tax-free savers during ISA season, there remains a persistent gap in how UK adults are saving for their future.
Close to two in five (39%) admit to not having an ISA as part of their saving or investment portfolio, missing out on valuable tax-free allowances.
The nationally representative survey of over 1,000 UK adults highlights a clear imbalance in ISA adoption across the market:
- 44% hold a Cash ISA, making it the most widely used product
- Only 21% have a Stocks & Shares ISA, despite the potential for higher long-term returns
- 39% do not hold any ISA at all
Among those who do hold ISAs, contribution habits also reveal a strong bias towards cash saving over investing:
- Nearly half (49%) have contributed only to a Cash ISA in the current tax year
- Just 18% have contributed only to a Stocks & Shares ISA
- Only 12% are contributing to both, highlighting a limited approach to diversified saving
Despite the £20,000 annual allowance, relatively few savers are making the most of it, with just 23% saying they expect to use their full ISA allowance this tax year, rising among those aged 55+. On average, ISA holders estimate they expect to save around £11,330, just over half of their allowance.
The UK ISA investment gap
The data shows that while ISAs remain a cornerstone of UK savings behaviour, they are primarily being used for cash-based saving rather than long-term wealth building.
Cash ISAs continue to appeal due to their accessibility, simplicity and perceived safety, whilst the lower uptake of Stocks & Shares ISAs points to a consistent investment gap amongst UK adults, with many not making the most of the benefits of a diversified portfolio of savings and investments to build long-term wealth. In fact, 22% of respondents said they did not know that they could hold a Cash ISA and stocks and shares ISA in the same tax year, pointing to education being a barrier to people using their allowance.
HSBC UK strengthens ISA offering
HSBC UK has strengthened its ISA offering and launched a market-leading rate and cash incentive to help more customers take advantage of tax-efficient savings during ISA season late last year, it also refreshed its digital wealth offering to make opening a stocks and shares ISA through the app a quick and seamless experience.
The Bank’s Fixed Rate Cash ISA now offers a leading rate of 4.5%, combined with a recently launched ISA incentive for eligible customers, designed to encourage both new and existing savers to make the most of their ISA allowance before the deadline.
This means customers can not only benefit from tax-free interest, but also receive an additional boost through cashback, at a time when maximising returns is front of mind for many households.
The tiered incentive is based on the total amount of new funds added during the offer period which runs cross tax year:
- Those depositing £20,000 - £49,999 will get £150 into their HSBC current account
- Those depositing £50,000 - £99,999 will get £250 into their HSBC current account
- Those depositing £100,000+ will get £500 into their HSBC current account
Lloyd Robson, Head of Savings at HSBC UK, said:
“Our research shows that while nearly half of UK adults are using Cash ISAs, a significant proportion are still missing out entirely on the benefits of tax-free saving.
“ISAs are one of the most effective tools available to help people build financial resilience, yet the vast majority are either not using them or if they are, not utilising their full allowance. That represents a major opportunity for people to take greater control of their financial future.
“There is also a clear gap between saving and investing. While cash plays an important role, it’s important that people feel supported and confident to consider a broader range of options that could help their money grow over the longer term.”
HSBC UK is supporting customers with a range of ISA options tailored to different financial goals, from easy-access Cash ISAs for short-term needs to Stocks and Shares ISA for those looking to grow their wealth over time.
Media enquiries to:
Emily Craig
Emily.Craig@hsbc.com
Email: UKpressoffice@hsbc.co.uk
Notes to editors:
[T&CS]
HSBC Build It, Bank It Offer Terms and Conditions
Get up to £500 when you either deposit new funds and/or transfer your ISA to us (the “Offer”)
Who’s running the Offer?
HSBC UK Bank plc (referred to in these terms and conditions as “HSBC”, “we”, “us”, or “our”) is the promoter of this offer.
What is the Build It, Bank It Offer?
This Offer rewards eligible new and existing customers who deposit and/or transfer a minimum total of £20,000 in new funds into an HSBC ISA account during the Offer period.
You must remain an eligible HSBC customer with an open HSBC Bank Account in good standing that is not restricted or suspended at the time the reward is paid.
You can combine deposits and transfers across multiple HSBC ISA accounts to reach the qualifying amount.
When is the offer period?
The Offer runs from 9 March 2026 at 00:01 GMT to 11 May 2026 at 23:59 GMT (inclusive).
Funds deposited or transferred outside of these dates will not be eligible.
What HSBC ISA accounts are eligible?
The following HSBC ISA accounts are eligible for this Offer:
- HSBC Loyalty Cash ISA
- HSBC Fixed Rate Cash ISA
- HSBC Global Investment Centre Stocks and Shares ISA (excluding where you have received financial advice)
Important: Each HSBC ISA account has its own terms and conditions that may affect how and when you can access your money. Please check the product terms and conditions before you apply to make sure the product suits your need
You cannot subscribe to both the HSBC Loyalty Cash ISA and HSBC Fixed Rate Cash ISA in the same tax year.
Your capital is at risk, and you may not get back the same amount you invest.
What funds and/or transfers qualify for this Offer?
Funds deposited and/or transferred into an HSBC Global Investment Centre Stock and Shares ISA Uninvested Cash Account must be fully invested to be eligible.
Any withdrawals made before the reward is paid from the eligible HSBC ISA accounts will reduce the qualifying balance.
You can transfer balances from multiple existing ISAs held with other providers to reach the qualifying amount.
Both partial and full deposits and /or transfers are eligible.
Your application and supporting evidence for ISA transfers must be received by us within the Offer period.
For more information on transfers into an HSBC Fixed Rate Cash ISA or HSBC Loyalty Cash ISA go to hsbc.co.uk/savings/isas/transfer-isa.
For more information on transfers into your HSBC Global Investment Centre Stocks and Shares ISA go to hsbc.co.uk/investments/existing-customers/global-investment-centre/#transfer-isa.
What are new funds?
Funds that aren’t already held in any account with HSBC, first direct or M&S Bank, before 9 March 2026.
Transfers of investments from existing HSBC portfolios, including third party products recommended by HSBC, or rebalancing do not qualify as new funds.
How much could I earn?
Your reward is based on the total amount of new funds deposited and/or transferred by the end of the Offer period, not the total value of your account at the end of the offer period, in accordance with the banding in the table below:
| Total amount Deposited/Transferred | Your reward payment |
|---|---|
| £20,000 to £49,999.99 | £150 |
| £50,000 to £49,999.99 | £250 |
| £100,000 or more | £500 |
The following scenarios assume that the qualifying funds remain held with us at the time the reward is paid:
- If you transfer £50,000 of new funds into an HSBC Loyalty Cash ISA on 9 March, you’ll be eligible for a £250 reward
- If you deposit £20,000 of new funds into an HSBC Fixed Rate Cash ISA on 9 March and transfer £80,000 of new funds into an HSBC Global Investment Centre Stocks and Shares ISA on 4 May 2026, your combined total of £100,000 will make you eligible for a £500 reward.
- If you deposit £20,000 of new funds into an HSBC Loyalty Cash ISA on 4 May 2026 and withdraw £5,000 on 4 August 2026, your qualifying balance would be reduced to £15,000 and therefore you would not be eligible for a reward.
- New funds used to qualify for the HSBC Premier Bring More, Get More Offer that ran between 5 January 2026 and 23 February 2026, cannot be counted towards this Offer. To qualify, customers must deposit or transfer additional new funds from an external provider. Internal transfers or reallocations, including moving funds into an HSBC ISA account, do not count as new funds.
How and when will I be paid?
If you qualify, your cash reward will be paid in GBP into your HSBC Bank Account by 30 September 2026. Eligibility is subject to qualifying funds remaining held with us at the time the reward is paid.
Only one reward will be paid per customer, based on your combined total deposits and transfers during the Offer period.
Who can apply?
To qualify for this Offer, you must:
- Be aged 18 or over.
- Be a UK resident.
- Hold or open an eligible HSBC ISA account.
- Hold an HSBC Bank Account.
- This Offer is open to HSBC employees.
These terms and conditions lay out the full eligibility criteria for the Offer. By taking part in the Offer, you’re agreeing to these terms and conditions.
Your Personal Data:
HSBC, its group companies, and its authorised third parties will use your personal data provided in relation to the Offer for the purposes of administering the Offer and the Offer reward. Your data will be treated in accordance with our Privacy Notice
What else do I need to know?
We’re not responsible for any loss or damage you incur by taking part in the Offer unless the loss or damage is caused by our negligence.
We can change these terms and conditions or cancel the Offer without telling you in advance if:
- Required by law; or
- There are reasons beyond our control; or
- There’s a fair or valid reason.
In the event of any changes or cancellation of the Offer, we’ll attempt to notify you. We will not be held responsible for any resulting loss, direct or indirect, due to the inability to continue the Offer as planned.
If you receive the reward, then this may be reportable to HMRC, and you are responsible for any tax liabilities. We do not provide tax advice, please speak to a tax adviser if needed.
The Offer is intended for individuals participating in good faith, a genuine way and for lawful purposes. In the event of suspicious or fraudulent activity, such as trying to abuse the Offer, HSBC (in its sole and absolute discretion) reserves the right to suspend your account and withhold any reward.
We’re covered by the Financial Services Compensation Scheme (FSCS). This applies to eligible deposits and investments. Most deposit and investment activity is covered by the scheme (up to relevant scheme limits) and you may be entitled to claim compensation if we can’t meet our obligations.
These terms and conditions are governed by English law, and claims can be brought in courts in the United Kingdom.
HSBC UK
HSBC UK serves over 15 million active customers across the UK, supported by 23,800 colleagues. HSBC UK offers a complete range of retail banking and wealth management to personal and private banking customers, as well as commercial banking for small to medium businesses and large corporates. HSBC UK is a ring-fenced bank and wholly owned subsidiary of HSBC Holdings plc.
HSBC Holdings plc
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 56 countries and territories. With assets of US$3,233bn at 31 December 2025, HSBC is one of the world’s largest banking and financial services organisations.