Earn 4.00% AER/tax-free with our Fixed Rate Cash ISA

Lock in a fixed rate of 4.00% AER/tax-free for up to 13 months.

Pay, or transfer in, a minimum of £500 and use your ISA allowance of up to £20,000 tax-free.

Withdrawal restrictions apply.

What you need to know

Overview

  • save up to £20,000 tax-free this tax year in a sole account*
  • get a fixed rate of interest when you lock in for the duration of the term
  • open your account today by paying or transferring in a minimum of £500.

Withdrawal restrictions apply

Interest rates

  • earn 4.00% AER (4.00% tax-free)
  • enjoy a fixed rate for up to 13 months
  • interest is calculated daily and credited at the end of the fixed term.

Eligibility

You can apply for a Fixed Rate Cash ISA if you:

  • are 18 or over
  • hold a first direct 1st Account 
  • can provide your National Insurance Number (if you're eligible for one). Please note you must have already provided your National Insurance Number to first direct, if eligible, in order to apply via our App. If you haven't, you can apply by phone
  • if you are not eligible to have a National Insurance Number you must also apply via phone.

To subscribe you must also:

  • be a resident in the UK for tax purposes, or if not so, be a UK Crown servant* serving outside the UK, or be married to, or in a civil partnership with, such person
  • not already have subscribed to another cash ISA with HSBC or first direct in the current tax year.

If you are not a UK resident for tax purposes, you can still apply to transfer in an existing cash ISA to our Fixed Rate Cash ISA.

 * this account can only be opened in a sole name.

All things tax

If you're over 18 and eligible to subscribe, you can save up to £20,000 this tax year in an ISA without paying UK Income Tax or Capital Gains Tax on any income and capital gains.

 

The maximum amount you can subscribe in an ISA is subject to annual subscription limits. The annual subscription limit for the current tax year is £20,000. ISA regulations allow this to be saved in multiple cash ISAs, multiple stocks and shares ISAs, multiple innovative finance ISAs** or up to £4,000 into one lifetime ISA** with either the same or different providers in the same tax year.

 

Customers aged 18 or over, will only be able to subscribe to one type of cash ISA and one type of stocks and shares ISA in the same tax year with either first direct or HSBC. But, even if they subscribe to an ISA with first direct (or HSBC). they will still be able to subscribe to ISAs with other ISA providers (subject to eligibility and availability).

 

For more information on changes to ISA regulations, take a look at our FAQs.

**first direct don't currently offer an innovative finance ISA or a lifetime ISA.

Summary Box

Account Name Fixed Rate Cash ISA
What is the interest rate? Current rate:
Term Interest rate
Term30-day deposit window + 12 months Interest rate4.00% AER (4.00% tax-free)
  • We calculate interest daily and credit this at the end of the fixed term
Can first direct change the interest rate? No, once we open your account, the rate will remain fixed for the duration of the fixed rate period.
What would the estimated balance be after 12 months based on a £1,000 deposit?
Initial deposit Interest rate Balance at end of term
Initial deposit£1,000 Interest rate4.00% AER (4.00% tax-free) Balance at end of term£1,040.00

For the purpose of this calculation it is assumed:

  • the deposit is made on the last day of the 30 day deposit window
  • no additional deposits
  • no withdrawals

This projection is provided for illustrative purposes only and does not take into account individual circumstances.
How do I open & manage my account?

Eligibility:

  • be aged 18 years or over
  • you must provide your National Insurance number if you’re eligible to hold one
  • to subscribe you must be resident in the UK for tax purposes, or if not a resident, be a UK Crown servant serving outside the UK, or be married to, or in a civil partnership with, such a person
  • you must hold a first direct 1st Account, our current account
  • this account can only be opened in a sole name

How to open the account:

  • open an account via our App, or by phone

Unless you are:

  • not eligible for a National Insurance number, or
  • you're a UK Crown servant serving overseas, or you're married to/in a civil partnership with a UK Crown servant, and your permanent residential address is outside the UK

You won't be able to apply via the app, so please call us to apply.

Minimum/Maximum Balance:

A minimum of £500 must be deposited into the account.

This can be made up of one or more of the following:

  • current tax year subscriptions
  • transfer of current and / or previous tax years’ subscriptions from another cash ISA

We must receive the minimum amount of £500 or transfer instruction within the first 30 days.

  • if you are choosing to transfer in, we must also receive the funds from your previous ISA within the first 70 days

The overall annual ISA subscription limit is subject to change every year (currently £20,000). Within this, the Lifetime ISA has its own annual payment limit (currently £4,000). 

You can only subscribe to one type of cash ISA and one type of stocks and shares ISA in the same tax year across first direct and HSBC.

There is no maximum limit for previous tax year transfer in balances.

How to manage the account:

Once opened you can manage your account via Online Banking, through our App or by phone.
Can I withdraw money?

Any withdrawals must be in full and will result in the account being closed. You may be subject to an early closure fee if you close your account after the 30-day cancellation period. The early closure fee will be the lower of the interest earned on your account, up to a maximum of the interest earned in the first 90 days' the account is open. This means that if you close your Fixed Rate Cash ISA before day 90 you could end up with no interest paid.

Your early closure fee will be taken from the balance of your Fixed Rate Cash ISA. If you withdraw funds from your ISA you will lose the future tax benefits associated with holding that money in an ISA.

At the end of the fixed term we’ll convert your Fixed Rate Cash ISA into an instant access Cash ISA. Once the conversion process is complete you will then be able to access your money without incurring an early closure fee.

Partial withdrawals are allowed once it has been converted to an instant access cash ISA.
Additional Information
  • a 30-day cancellation period applies to this account
  • you can check your eligibility for a National Insurance number and apply at GOV.UK - use their search tool and look under national insurance
  • the value of tax benefits provided by a cash ISA depend on your personal circumstances and tax rules may change in the future
  • if you wish to transfer an existing cash ISA into your new Fixed Rate Cash ISA, you must tell us this as part of your application

Definitions

  • AER stands for Annual Equivalent Rate. This shows you what the rate would be if interest were paid and compounded each year
  • Tax-free means free from personal liability to any UK Income Tax and Capital Gains Tax
  • ISA stands for Individual Savings Account
  • Cancellation period refers to the time frame you have to close this account without incurring a fee. If you were to cancel, it would be as if you hadn't subscribed to the Fixed Rate Cash ISA in the first place

Information correct as of 25 June 2026

Before you apply

Ready to apply?

The easiest way to apply for a Fixed Rate Cash ISA is through our App.

 

Simply, log in and select 'Products' from the more menu, then 'Fixed Rate Cash ISA' to start your application. 

New to first direct? You need to be a 1st Account holder to get access to this product. Find our more about our 1st Account.

Your eligible deposits with HSBC UK Bank plc are protected up to a total of £120,000 or up to £240,000 for joint accounts, by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme.

This limit is applied to the total of any deposits you have with the following: HSBC UK, HSBC Private Bank, first direct, M&S Bank and M&S Savings and Investments. Any total deposits you hold above the limit between these brands are unlikely to be covered.

Other ways to apply