HSBC customers have been experiencing significant delays when attempting to transfer their ISA savings, with some waiting over a month to access their funds. The delays are attributed to an overwhelming surge in demand following the bank's introduction of a new switching deal.
Cashback Incentives Spark Demand
The bank offered £150 cashback to customers who deposited at least £20,000 into an ISA. Those depositing between £50,000 and £99,999 received £250, while customers adding £100,000 or more were eligible for £500 cashback. One saver informed the Telegraph that she initiated a transfer of £70,500 on April 8 and has yet to gain access to her funds. She expressed concern, stating, 'It is a lot of money not to be able to access in case of an emergency.'
Standard Transfer Timelines Exceeded
Typically, transfers between cash ISAs should take 15 working days, while other types, such as stocks and shares ISAs, should be completed within 30 calendar days. However, many HSBC customers have reported waiting far longer. Social media platforms have been flooded with complaints, with one user asking, '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.'
HSBC Acknowledges Backlog
In response to customer concerns, HSBC confirmed it is experiencing a backlog of ISAs awaiting opening. The bank assured customers that any money in transit remains safe and that any missed interest will be applied retroactively. Additionally, customers will still receive the relevant cashback bonus once their ISA is opened. An HSBC UK spokesperson stated, '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.'
Understanding ISAs
An ISA is a savings account that allows individuals to earn interest without paying tax. For other savings accounts, tax is payable on interest above certain thresholds. Basic-rate taxpayers can earn up to £1,000 in savings interest each tax year before tax is due, known as the personal savings allowance. Higher-rate taxpayers have a lower allowance of £500, while additional rate taxpayers receive no personal savings allowance. The main types of ISAs include cash ISAs, stocks and shares ISAs, Lifetime ISAs, and innovative finance ISAs. Children have their own version called Junior ISAs. The annual subscription limit for ISAs is £20,000 across all accounts, though some ISAs have lower limits; for example, only £4,000 can be saved into a Lifetime ISA each tax year.
