Instant Access Cash ISA
Flexible tax-free saving
Save tax-free with our Instant Access Cash ISA, knowing you can make withdrawals if you need to.
How our Instant Access Cash ISA works
Flexible ways to pay into your savings
Start with just £1 and build up. Or put the maximum in straight away and let it grow – it’s up to you.
Once you’ve registered for online and telephone banking, you can set up regular payments. Our mobile banking app helps you manage your account on the go. You can also make one-off deposits any time.
Remember, you can only save up to £15,240 for the tax year 2015/16 - this is the combined limit for both Stocks and Shares and Cash ISAs.
Transfer your existing ISA
If you already have some ISA savings, you can transfer your existing ISAs to a Tesco Bank Cash ISA and keep all your tax free savings in one place.
Remember to check with your existing ISA provider first, as they may have restrictions on transfers.
To understand more about types of ISA and your tax-free savings allowance, take a look at the important information. Important information
What you can transfer
You can transfer ISA subscriptions (money paid in) without losing your tax free benefit. You can transfer subscriptions in the following ways:
- between ISA providers
- between different Tesco Bank Cash ISA accounts
- between Cash ISAs and Stocks and Shares ISAs (Tesco Bank only offers Cash ISAs)
- to ensure your interest payments remain tax free, you need to transfer your funds using the ISA transfer process. This process is offered by Tesco Bank and most other providers.
You can transfer:
- All of your current year's subscriptions to a Cash ISA or a Stocks & Shares ISA. You can then make further subscriptions to your new ISA in the same tax year, as long as you don't exceed your annual allowance.
- All or part of any subscription made in previous tax years.
- You can only subscribe to one Cash ISA and one Stocks and Shares ISA in a tax year; however, you can hold multiple Cash ISAs and Stocks and Shares ISAs as long as the subscriptions were made in different tax years. In addition, if you have previously subscribed to a Cash ISA in the year but subsequently transferred your money to a Stocks and Shares ISA, you will still be able to use any remaining ISA allowance up to the annual tax-free allowance of £15,240.
Other providers may have restrictions on transfers, so you should always check this with them before transferring money to another provider.
How to transfer an existing ISA to Tesco Bank
New customers should complete an application either online or by calling us on 0345 678 5678, and we can begin the transfer process during the application. This number may be included as part of any inclusive call minutes provided by your phone operator.
Access to your money
Easy access to your money
Plans change and things can happen unexpectedly. So it only takes a few clicks or a phone call to transfer money out of your Instant Access Cash ISA.
For security, there is a maximum daily withdrawal limit of £10,000 for online transfers. If you need to transfer more (or all of your money) just give us a call.
Daily withdrawal limits may change from time to time, but we'll let you know if this happens.
How do withdrawals affect your tax-free savings?
Your tax-free allowance is all about the total amount you've paid in to your ISA in that tax year, not the actual amount that's in your account earning interest.
You can make as many deposits and withdrawals as you like into your Instant Access Cash ISA, until all of the deposits you've made (including those into a Stocks and Shares ISA if you have one) add up to £15,240 for the 2015/16 tax year.
So, once you've paid in a total of £15,240, you can't pay more in, even if you've taken money out and there's less than £15,240 in your account.
For example: If you pay in £15,240 (in the 2015/16 tax year) and then withdraw £1,000 you won't be able to pay this money back into the account in the same tax year.
Our interest rates
You earn an interest rate of 0.75% Gross/AER (variable).
Interest rate definitions
- Gross is the interest rate paid before tax is deducted.
- Annual Equivalent Rate (AER) illustrates what the interest rate would be if it was paid and compounded each year.
How interest is calculated and paid
Interest is calculated daily and is added to your ISA account on the anniversary of the account opening. The interest paid is tax free.
The current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances.
Financial Services Compensation Scheme
Your eligible deposits with Tesco Bank are currently protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit protection scheme. Any deposits you hold above the £85,000 limit are not covered.
Important Information: From 1 January 2016, the limit of compensation under the Financial Services Compensation Scheme (FSCS) is changing from £85,000 to £75,000.
Have a question or need help applying? Our friendly, UK-based customer service team is here to help.
Other customers have been asking:
Help for existing customers
Customer services 0345 678 5678*
Customer services textphone 0345 671 0672*
Lines are open Monday to Friday 8am-10pm, Saturday and Sunday 9am-5pm.
*This number may be included as part of any inclusive call minutes provided by your phone operator.
Need help with online banking?
Having trouble registering or managing your account online? Don't worry, we're here to help.
Current interest rates
Check our current interest rates to see what your savings account is currently earning.
Other ways to save
- Instant access
- Fixed Rate Cash ISA
Summary of key information
Key information for our Instant Access Cash ISA
Tesco Bank Instant Access Cash ISA
|Interest rates (AERs)|
The rates of interest for this account are variable. See the current interest rates. Please note: interest is paid into the account on the anniversary of the account opening.
There is no tax payable on the interest earned on this account.
Withdrawals can be made at any time. If you take money out you won't be able to pay it in again if you've already used your Cash ISA allowance for that tax year.
|Daily withdrawal limits|
The maximum daily limit for Instant Access Cash ISA withdrawals is £10,000 via online banking, no restriction by telephone. Maximum daily withdrawal limits may change from time to time. We will notify you of these changes.
You can manage the account by signing up to online banking or telephone banking.
Types of ISA and allowances
There are two types of ISA: a Stocks and Shares ISA and a Cash ISA.
You can subscribe to one Stocks and Shares ISA and one Cash ISA each tax year. The tax year runs from 6 April to 5 April the following year.
The ISA limit for 2015/16 tax year is £15,240. This is the maximum amount you can pay in total into ISAs this tax year.
This can be paid into a Stocks and Shares ISA, a Cash ISA or a combination of both.
For example, if you saved £10,000 into a Cash ISA in this tax year, the maximum which can be saved into the Stocks and Shares ISA in the same tax year is £5,240.
Tesco Bank only offers a Cash ISA.
If you decide to cancel your Cash ISA, this won't affect your ISA allowance for the current tax year and you can still open another Cash ISA in that tax year. You have 30 days from receiving your welcome letter to cancel your Cash ISA. If you do cancel, we'll refund the money you've paid in.
Cash ISA changes for 2014/15 tax year
The government announced at Budget 2014 that from 1 July 2014, ISAs (Individual Savings Accounts) will be reformed into a new simpler product, the New ISA (NISA) with a combined limit for Cash ISAs and Stocks and Shares ISAs.
The ISA limit for 2015/16 tax year is £15,240.
Tesco Bank only offers Cash ISAs, and not Stocks and Shares ISAs but the good news is that your Tesco Bank Cash ISA will automatically become a Cash NISA (although we will still call it an ISA).
The New ISA will also offer you the option to save your whole allowance of £15,240 in cash, stocks and shares, or any combination of the two.
For example you could choose to pay in:
- £15,240 to a Cash ISA and nothing to a Stocks and Shares ISA
- £15,240 to a Stocks and Shares ISA and nothing to a Cash ISA
- A combination of amounts between a Cash and Stocks and Shares ISA, up to the overall annual limit of £15,240