Flexible tax-free saving
Save tax-free with our Instant Access Cash ISA, knowing you can make withdrawals if you need to.
- 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 All you have to do is replace the money in the same tax year it was withdrawn.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 £20000 in the 2022/23 tax year - this is the combined limit for all ISA types. ISA Types
- Earn 1.61% Gross/AER (variable) on your savings – includes a fixed bonus of 1.26% Gross for 12 months. 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
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.
Contact your account provider to make regular or one off payments into your Account. You’ll need your Cash ISA Sort Code and Account Number to do this.
Remember, you can only save up to £20,000 for the tax year 2022/23 - 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
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 other eligible types of ISA (please note: some types of ISA have restricted terms)
- 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 other eligible types of 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 of each type of ISA (e.g. Cash ISA, Stocks and Shares ISA) in a tax year; however, you can hold more than one of each type of ISA 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 different type of ISA, you will still be able to use any remaining ISA allowance up to the annual tax-free allowance of £20,000.
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
Customers should complete an application either online or by telephone so we can begin the transfer process during the application. That will help us set up your ISA as quickly as possible. If you wish to apply by telephone, you can call us on 0345 678 5678. This number may be included as part of any inclusive call minutes provided by your phone operator.
If you already have a Cash ISA with us and would like to transfer an existing Cash ISA which you hold with another provider, you can do this by completing a Transfer Authority Form. Please call us on 0345 678 5678 if you would like to arrange this.
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 2022/23 is £20,000.
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 £20,000 for the 2022/23 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.
You earn an interest rate of 1.61% Gross/AER (variable). The rate includes a fixed bonus of 1.26% Gross for 12 months from the date the account is opened. Rate correct as at 13 September 2022.
At the end of the 12-month period, the rate will revert to the standard variable interest rate that applies at the time.
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 the current Financial Services Compensation Scheme limit, the UK's deposit protection scheme. Any deposits you hold above the current limit are not covered.
Other ways to save
Tax-free savings with our Fixed Rate Cash ISA
Compare our savings accounts
Already used up your tax-free allowance? See other options.
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 for our Instant Access Cash ISA
Instant Access Cash ISA
What is the interest rate?
Interest rate without bonus (Standard interest rate): 0.35% Gross/AER (variable)
Interest rate with bonus (includes a fixed bonus of 1.26% for 12 months): 1.61% Gross/AER (variable)
How you receive interest:
Interest will be earned at a daily rate and will be paid into the account on the anniversary of the account opening and at account closure
*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 – the Standard Interest Rate is a variable interest rate so we may change it at any time. If we decide to reduce the Standard Interest Rate, we will always contact you in advance, with at least 14 days’ notice, by letter or email (depending on your paperless 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 and include, for example, changes in market conditions which may affect interest rates
If we increase the Standard Interest Rate, the new rate can be viewed in Online Banking and we may also contact you to let you know
Bonus Interest Rates are always fixed and won’t vary during the Bonus Period. We will write to you at least 14 days in advance to let you know when your current Bonus Period is coming to an end.
What would the estimated balance be after 12 months based on a £1,000 deposit?
The estimated balance would be £1,016.10 after 12 months (including your bonus interest) and £1,019.66 after 24 months.
Estimated balances are for illustrative purposes only and assume no further deposits, withdrawals or changes to the Standard Interest Rate. Your actual balance may differ depending on the Standard Interest Rates in effect and when your account was opened.
How do I open and manage my Account?
To subscribe to an Instant Access Cash ISA you must:
Be over 18 years of age
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 Linked Account in your own name
You can deposit a minimum of £1, you don't need to make a minimum deposit on a regular basis and there is no maximum balance limit (subject to ISA subscription limits)
You can manage your account via Online Banking, on the Mobile App and over the telephone
Can I withdraw money?
Yes, you can withdraw money from your Instant Access Cash ISA to a Linked Account in your own name without notice
A Linked Account is another account you have told us about and held in your name with another bank in the UK or another internal Tesco Bank account in your own name
You can make withdrawals online or 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 as 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)
Internal Transfers to other Tesco Bank accounts in your own name using the Mobile App and Online Banking – £100,000 per transaction, with no limit on the number of transactions per day
Transfers to other non-Tesco Bank accounts in your own name in the UK using the Mobile App, Online Banking and a TPP – £10,000 limit for each payment method
Telephone Banking - £100,000
For timescales on withdrawals and more information, please refer to the 'How can I send money to another account and when will my money get there?' section of your Terms and Conditions.
Your 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
ISA rules are subject to change by Her Majesty's Treasury
Interest rates are correct as at 13 September 2022 and are subject to variation.
Types of ISA and allowances
There are a number of different ISA types: Cash ISA, Stocks and Shares ISA, Innovative Finance ISA, Lifetime ISA and Help to Buy ISA.
You can only subscribe to one of each type of ISA each tax year. The tax year runs from 6 April to 5 April the following year.
The ISA limit for 2022/23 tax year is £20,000. This is the maximum amount you can pay in total into ISAs this tax year.
This can be paid into one type of ISA (as long as you are eligible) 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 other types of ISA in the same tax year is £10,000.
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.
Contact us - we're here to help
Have a question or need help applying? Our friendly, UK-based customer service team is here to help.