Online banking

Instant Access Cash ISA

Flexible tax-free saving

Instant Access Cash ISA
Instant Access Cash ISA

Save tax-free with our Instant Access Cash ISA, knowing you can make withdrawals if you need to.

  • NEW - now with flexible feature where you can take money out and replace it later, without it counting towards your annual ISA allowance. All you have to do is replace the money in the same tax year it was withdrawn
  • Start saving from £1 and pay in up to £15,240 in the 2016/17 tax year - this is the combined limit for all ISA types. ISA Types
  • Earn 0.50% Gross/AER (variable) on your savings Our interest rates
  • Instant access to your funds Daily withdrawal limits apply
  • The current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances

How our Instant Access Cash ISA works

Making deposits

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 2016/17 - this is the combined limit for all ISA types. ISA Types

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

ISA transfers

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, Stocks and Shares ISAs and Innovative Finance 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, Stocks & Shares ISA or Innovative Finance 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, one Stocks and Shares ISA and one Innovative Finance ISA in a tax year; however, you can hold multiple Cash ISAs, Stocks and Shares ISAs and Innovative Finance 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 or Innovative Finance 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 annual 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. Your tax year allowance for 2016/17 is £15,240.

You can make as many deposits as you like into your Instant Access Cash ISA, until all of the deposits you've made (including those into a Stocks and Shares or Innovative Finance ISA if you have one) add up to £15,240 for the 2016/17 tax year.

The flexible Instant Access Cash ISA allows you to withdraw and replace money as often as you’d like from both current and previous years subscriptions, as long as the money is returned to the account before midnight on the 5th April in the same tax year it was withdrawn. However, we recommend that you do so by 5pm on 5th April to ensure that any funds are in your Account before the cut off deadline at the end of the tax year.

Any money not paid back into the Cash ISA before 5th April will lose its tax free status. Any further deposits made after 5th April will count towards future years’ annual allowance.

Our interest rates

Interest rates

You earn an interest rate of 0.50% 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.

FSCS - protecting your money
FSCS - protecting your money

Financial Services Compensation Scheme

Your eligible deposits with Tesco Bank are currently protected up to the current Financial Services Compensation Scheme limit, the UK's deposit protection scheme. Any deposits you hold above the current limit are not covered.

Contact us

Have a question or need help applying? Our friendly, UK-based customer service team is here to help.

Help for existing customers

Helpful numbers

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.

Important information

Terms & conditions

We want you to be happy with your savings account. To help you decide whether the Tesco Bank Instant Access Cash ISA is right for you please read the key features document and terms and conditions.

Summary Box

Summary Box for our Instant Access Cash ISA

Account name

Instant Access Cash ISA

What is the interest rate?
  • 0.50 Gross/AER* (variable)
  • Interest will be earned at a daily rate and will be paid into the account on the anniversary of the account opening

*Gross is the interest rate paid before tax is deducted.

Annual Equivalent Rate (AER) illustrates what the interest rate would be if paid and compounded each year.

Can Tesco Bank change the interest rate?
  • Yes – this is a variable interest rate account so we may change the interest rate at any time
  • If we decide to reduce the interest rate we will always contact you in advance with 14 days’ notice by letter or email (depending on your preferences). The reasons which may lead us to reduce the Standard Interest Rate can be found in the 'Interest' section of the Terms and Conditions of the account
What would the estimated balance be after 12 months based on a £1,000 deposit?

The estimated balance would be £1,005.00.

This is only an example and does not take into account your individual circumstances. The example assumes that no withdrawals are made, any interest earned stays in the account and the interest rate does not change during the 12 months.

How do I open and manage this account?

To subscribe to an Instant Access Cash ISA you must:

  • Be 18 or over
  • Be resident in the UK or, if not, be a Crown employee serving overseas or be married to or in a civil partnership with a Crown employee.
  • Complete a Cash ISA Declaration form confirming you are eligible to have a Cash ISA
  • Not have subscribed to another Cash ISA in the same tax year unless you are going to transfer all of your subscriptions from the current tax year from your existing Cash ISA to your Tesco Bank Cash ISA and not have exceeded the overall subscription limit for the year

You can apply online and over the telephone

  • To apply you must provide details of a nominated bank account
  • You can deposit a minimum of £1 with no maximum balance (subject to ISA subscription limits)
  • You can manage your account online and over the telephone
  • To manage your account over the phone, you will need to set up telephone security details (which will also be used for online banking)
  • To use online banking or the mobile app you must first register, and create your login details
Can I withdraw money?
  • Yes, you can withdraw money from your Instant Access Cash ISA without notice.
  • You can make withdrawals online and over the phone.
  • The Instant Access Cash ISA is flexible which means you can take money out and replace it later, without it counting towards your annual ISA allowance. All you have to do is replace the money in the same tax year it was withdrawn.
  • You can also transfer to another ISA provider using the ISA transfer process.

Limits (maximum you can move out each day subject to your available balance)

  • Online Internal transfers - £100,000 (to other Tesco Bank account)
  • Online External Transfers - £10,000
  • Telephone Banking - Unlimited

For timescales on the above please refer to the 'How can I move money to another account and when will my money get there?' section of your Terms and Conditions.

Additional information
  • The account can be cancelled within 30 days of receiving the welcome letter.
  • Previous years’ subscriptions may be transferred into your account, see the 'Transferring your ISA' section of your Terms and Conditions
  • The current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances
  • Interest rates are correct as at 8 November 2016 and are subject to variation.

Types of ISA and allowances

There are a number of different ISA types: Cash ISA, Stocks and Shares ISA and Innovative Finance ISA.

You can subscribe to one Stocks and Shares ISA, one Innovative Finance 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 2016/17 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, an Innovative Finance ISA, a Cash ISA or a combination of all types.

For example, if you saved £10,000 into a Cash ISA in this tax year, the maximum which can be saved into a Stocks and Shares and Innovative Finance ISA in the same tax year is £5,240

For further information please contact HMRC.

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.