HSBC has upped the potential tax-free returns on its equity-linked Tessa-only Isa, called Performanc...
HSBC has upped the potential tax-free returns on its equity-linked Tessa-only Isa, called Performance Plus, but this offer is only available until 26 July.
HSBC has increased the maximum five-year potential return of the Performance Plus Isa by 5% to 55% of the amount invested in addition to the return of the original capital. This represents an annual return of 9.16% AER.
Investors can shelter up to £9,000 of maturing Tessa capital tax-free in the Isa, with returns linked to stock market performance. The Isa features capital protection where the investment is designed to return at least the original investment after five years, even if the stock market falls in that time.
Minimum investment is £3,000 and the maximum £9,000 in addition to the normal Isa allowance. All returns are stated after charges and costs.
HSBC notes that savers have only six months to roll their capital over into a Tessa-only Isa, or they will lose the extra tax-free allowance and may have to pay hundreds of pounds extra in tax on their savings each year.
Mike Watson, head of savings and investments at HSBC Bank, said, "HSBC's Performance Plus Isa offers the best of both worlds - higher potential returns than are available on deposit-based accounts and capital protection if the investment is held for five years. This makes it suitable even for cautious investors."
Further details of the Performance Plus ISA are available by calling 0800 299 299.
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation