HSBC launches 3.1 per cent Fixed Rate Cash ISA

HSBC is launching a Fixed Rate Cash ISA with a competitive interest rate of 3.1 per cent, giving customers the opportunity to guarantee their return for 12 months.

From 9 March, new and existing customers will be able to open HSBC's Fixed Rate Cash ISA and start earning a decent return on their savings.

Richard Brown, HSBC's Head of Savings, said: "In the current environment, savers may feel that they're not gaining as much return on their savings as they have done previously. HSBC has developed a product that's ideal for customers who are committed to saving and have no intention of touching their ISA allowance. A fixed competitive interest rate will give our customers peace of mind in unstable times."

According to recent Mintel research, only 40 per cent of savers in the UK are currently taking advantage of their tax free allowances, meaning that 60 per cent could be paying tax un-necessarily on their savings.

HSBC offers a range of savings products, including a market leading online Cash e-ISA, offering an interest rate of 2.25 per cent variable.