HSBC launches £500 cashback bonus on selected ISAs

HSBC is now one of several high street banks to pay a cashback reward to savers who open or transfer to a qualifying ISA.

As we draw closer to the end of the 2025/26 tax-year, savers could earn an attractive cash boost if they open an ISA from a major high street name.

Until 11 May 2026, HSBC will pay up to £500 cashback to eligible customers who add at least £20,000 to a qualifying cash ISA or stocks and shares ISA. This could be by opening and depositing money into a new account or by transferring funds from an existing ISA (or both).

This offer applies to HSBC’s Loyalty Cash ISA that pays 2.50% AER (3.00% AER for Premier customers), its Fixed Rate Cash ISA paying 4.00% AER (fixed for 13 months) and its stocks and shares ISA. Note that savers need to have a HSBC current account to open any of these ISAs.

After launching this cashback reward, HSBC now joins Barclays Bank and Lloyds Bank in offering a cash incentive on its range of ISAs.

“With the new tax-year fast approaching, ISA season is coming into full swing. Typically, this is when providers will compete most fiercely to make their deals enticing to new customers,” Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, explained.

“Many households may be searching for a financial boost and HSBC’s latest £500 cashback offer may provide a much-needed cushion,” she added.

Is a stocks and shares ISA worth it?

HSBC’s stocks and shares ISA offers the same cashback bonus as its cash ISAs, which may appeal to those who are willing to invest their money for the long-term.

However, while cash ISAs offer a guaranteed return on your money, the value of a stocks and shares ISA could go up or down, depending on how your investments perform. This means there’s a risk you could get back less than you invested but, in the long-term, investing has the potential to offer a higher return.

Find out more and compare other providers on our stocks and shares ISA chart.

How much cashback could you earn?

If savers deposit between £20,000 and £49,999 into a qualifying ISA from HSBC, they will receive a £150 bonus in their current account.

HSBC will then pay a higher £250 if savers deposit between £50,000 and £99,999, and the maximum cashback bonus of £500 on deposits of £100,000 or more.

The cashback will be paid into the customer’s HSBC current account by 30 September 2026.

Bear in mind that the bonus amount will be calculated on the total amount deposited or transferred in; it doesn’t need to be made in one payment. This means that savers can take advantage of their existing ISA allowance for the current tax-year, as well as their 2026/27 allowance from 6 April onwards, to qualify for the cashback reward.

If savers withdraw from their account before the cashback bonus is paid, this could affect the reward they receive.

Does the cashback bonus outweigh the lower rates?

The cashback bonus can be an attractive reason to open one of HSBC’s cash ISAs, but Eastell says consumers should “focus on more than just the headline cashback rate” as they may be able to get a better return on their money elsewhere.

For example, HSBC’s Loyalty Cash ISA pays just 2.50% AER to standard current account customers, compared to the market-leading easy access ISA rate of 4.56% AER (which includes a 0.96% bonus for 12 months, subject to conditions).

If savers deposited £20,000 into the leading ISA paying 4.56% AER for one year, they would receive around £912 in interest.

However, if they deposited this sum in HSBC’s Loyalty Cash ISA, they would earn just £500. Even if you add the £150 bonus, savers could earn significantly more interest by putting their money in a higher-paying account.

On the other hand, HSBC’s Fixed Rate Cash ISA offers a much more competitive return of 4.00% AER and, taking into account the cashback reward, it can offer a greater return than the market-leading one-year ISA.

Those who deposit £20,000 in this account could earn £800 in interest over one year, plus the £150 cashback bonus, taking their total return up to £950.

By contrast, savers may only receive around £846 if they put the same amount into the top one-year ISA paying 4.23% AER.

Use our lump sum savings calculator to work out how much interest you could earn.

Discover the latest ISA rates

Head to our charts to find out the latest ISA rates, whether you’re searching for an easy access ISA or a fixed rate ISA.

Alternatively, visit our ISA roundup for a summary of today’s leading rates. Throughout ISA season, we’ll be updating this each day to highlight all the latest changes.