HSBC Launches Range Of 'Off The Peg' And 'Tailor Made' ISAs

HSBC has unveiled its range of ISAS, to support the government's objectives to deepen and broaden the 'savings habit'. The HSBC ISA product range - available through Midland branches, direct and independent financial advisors (IFAS) - includes ISAs 'off the peg' (without advice), or 'tailor made' for people who need expert advice.

The bank's regular research into consumer attitudes on ISAs has revealed that:

• six out of 10 adults are aware of ISAs, an increase of l4 point sinceo the last wave of research in November 1998;
• nearly three quarters (72 per cent) of likely ISA savers would prefer to buy the ISA from a bank, building society or IFA. Just two per cent identified a supermarket as their first choice provider;
• one third of probable ISA savers would be more inclined to invest in a CAT-standard ISA, but over half won't be influenced by a CAT-standard in making their choice;
• among those who said they were likely to buy an ISA, their is a strong preference for the cash component (60 per cent), with equities appealing to 26 per cent.

HSBC 'off the peg' ISAs include CAT-standard options and are all offered on an execution-only basis: savers can decide for themselves which is the right one for them.

The stoks and shares CAT-standard ISA invests in the bank's award-winning Houshold Names Unit Trust, an actively mmaged fund that has outperformed the FTSE 100 since launch in 1997.

Demand for the HSBC CAT-standard cash ISA is expected to be high - accounting for up to 60 per cent of ISA enquiries at launch. It will pay a top rate of 6 per cent on 1633,000 or above and 4.5 per cent on a minimum opening balance of just 1631. For further information customers phone 0800-520 420 or call into their local high street branch.

'Tailor made' ISAs are offered with advice on a mini/maxi basis. Investors in the stocks and shares component can choose between a wide range of funds offering income and/or growth, UK or European exposure, with corporate bonds and/or company shares as the underlying investments. Index tracking, actively managed and capital protected options will be available.

'Tailor made' ISAs are available with advice, from the bank's financial planning managers in 1,700 branches across the country, or through independent financial advisors from HSBC Asset Management.

"We've made a commitment to meet the savings and investment requirements of all our customers, from first time savers to more sophisticated investors" says Alan Hughes, general manager, marketing. "We are also committed to helping customers understand the benefits of ISA savings and which options will work best for them. We have invested significant resources in producing customer information guides, in training over 5,000 staff and holding customer seminars. We will also be running an extensive advertising campaign to raise awareness of tax-free savings."

Technical details

• HSBC ISAs are offered by Midland Bank plc (regulated by the PIA) which can only advise on its own products and HSBC Asset Management Europe Ltd (regulated by IMMO and the PIA).
• MORI Financial Services, commissioned by Midland Bank and HSBC Asset Mamangement, carried out a survey of 2,000 GB adults in March 1999 (and previousbly in May and November 1998).
• The sample has been weighted to bring it into line with national demographic profiles.
• The Household Names Unit Trust won the 1998 Money Observer Investment award for Best UK Equity Fund.