Flexible tax-free saving
Save tax-free with our Instant Access Cash ISA, knowing you can make withdrawals if you need to.
- Earn 4.05% Gross/AER (variable). This rate includes a guaranteed fixed bonus rate of 2.80% for the first 12 months, plus our standard variable rate which is currently 1.25%. After 12 months, you’ll continue to receive our standard variable rate (all rates are Gross/ AER).
- 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 All you have to do is replace the money in the same tax year it was withdrawn.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 current tax year - this is the combined limit for all ISA Types.
- 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.
Please read the Summary Box before moving on to apply.
A Summary Box sets out the key features of a savings account. It’s designed to help you easily compare between accounts. For full details, please read the account terms and conditions.
Summary Box:
Instant Access Cash ISA
4.05% Gross/AER* (variable) for the first 12 months. The rate is made up of:
- A fixed bonus rate of 2.80% Gross/ AER which is applied for the first 12 months on balances up to £1million
- And our standard variable rate (which is currently 1.25% Gross/ AER) which this account will continue to earn after the bonus rate has ended
How you receive interest:
- Interest will be earned at a daily rate and paid into the account annually on the anniversary of the account opening and at account closureInterest will be earned at a daily rate and paid into the account annually on the anniversary of the account opening and at account closure
*Gross is the interest rate paid before tax is deducted. The Annual Equivalent Rate (AER) illustrates what the interest rate would be if paid and compounded each year.
- Yes – the Standard Interest Rate is a variable 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 statement preferences)Yes – the Standard Interest Rate is a variable 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 statement 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 affect interest ratesThe 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 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 knowIf 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 endBonus 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
The estimated balance would be £1,040.50 after 12 months (including your bonus interest) and £1,053.51 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.
To subscribe to an Instant Access Cash ISA you must:
- Be over 18 years of age
- Be resident in the UK, a Crown employee serving overseas, or be married to or in a civil partnership with a Crown employee serving overseasBe resident in the UK, a Crown employee serving overseas, or be married to or in a civil partnership with a Crown employee serving overseas
- Complete a Cash ISA Declaration form confirming you are eligible to have a Cash ISAComplete a Cash ISA Declaration form confirming you are eligible to have a Cash ISA
- Not have exceeded the overall subscription limit for the yearNot have exceeded the overall subscription limit for the year
You can apply online and over the phone:
- To apply you must provide details of a Linked Account in your own nameTo 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 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 on the Mobile App, Online Banking and over the phoneYou can manage your account on the Mobile App, Online Banking and over the phone
- Yes, you can withdraw money from your Instant Access Cash ISA to a Linked Account in your own name without noticeYes, 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 nameA 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 on the Mobile App, Online Banking or over the phoneYou can make withdrawals on the Mobile App, Online Banking 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 withdrawnThe 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 processYou can also transfer to another ISA provider using the ISA transfer process
Daily 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 dayInternal 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 methodTransfers 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 - £100,000Telephone 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 letterYour account can be cancelled within 30 days of receiving the welcome letter
- To transfer an ISA held with another ISA provider to Tesco Bank, please refer to the “Transferring your ISA” section of your Terms and ConditionsTo transfer an ISA held with another ISA provider to Tesco Bank, please refer to the “Transferring your ISA” section of your Terms and Conditions
- ISA rules are subject to change by HMRCISA rules are subject to change by HMRC
Want to learn more about what ISAs are and how they work? Check out our ISA frequently asked questions.
Our banking business has now transferred to Barclays
Barclays will continue to use the Tesco Bank brand on all existing Tesco Bank banking products through a long-term strategic partnership with Tesco. If your application is successful, there’ll be no immediate changes to how you use and manage your account on a day-to-day basis.
To find out more and view a range of helpful documents just go to Tesco Bank’s transfer scheme page.
Financial Services Compensation Scheme
- Before the transfer became effective on 1 November 2024, if you had eligible deposits with both Tesco Bank and Barclays, you were covered up to £85,000 with each bank by the FSCS.Before the transfer became effective on 1 November 2024, if you had eligible deposits with both Tesco Bank and Barclays, you were covered up to £85,000 with each bank by the FSCS.
- Now that we are part of Barclays, any combined eligible deposits held with Tesco Bank and Barclays will be covered by the FSCS up to a limit of £85,000 across all the accounts you hold.Now that we are part of Barclays, any combined eligible deposits held with Tesco Bank and Barclays will be covered by the FSCS up to a limit of £85,000 across all the accounts you hold.
If you’re concerned about the effect of the transfer on your eligible deposits and/or the statutory protection that may be available to you, please call us on 0345 678 5678*
Changes to ISA Manager
Barclays is now the ISA Manager for all Tesco Bank ISAs, including Instant Access Cash ISAs, Fixed Rate Cash ISAs and Junior Cash ISAs.
*Calls may be recorded. The costs from mobile phones may vary. If you’re calling from outside the UK, please check with your service provider for the cost of calling this number from overseas.
View or download the account documents
Frequently asked questions about ISAs
There’s no limit to how much money can be in an ISA, though there is a limit to how much you can pay in during each tax year.
The maximum allowance for the current tax year is £20,000. This is the combined amount you can save across all ISA types you hold (for example, Cash ISA, Stocks and Shares ISA, Lifetime ISA, Help to Buy ISA).
You can transfer funds saved in previous tax years without counting towards your annual ISA limit, even if it exceeds £20,000. We’ll handle the transfer with your current ISA provider on your behalf. It's important not to withdraw and move the funds yourself, as doing so would lose it’s tax free benefits and contribute to your annual allowance.
You can fund your account by:
Making deposits
You can do this 48 hours after account opening by sending money via your bank account. You’ll need your Cash ISA Sort Code and Account Number to do this – you’ll find this on your statement, your welcome letter or in Online Banking or the Mobile App.
Transferring funds from previous or existing ISA accounts (via the ISA transfer process)
You can transfer funds you’ve saved during this current tax year. You can then make further deposits in the same tax year, as long as you don’t exceed your annual allowance of £20,000 across all ISA types you hold.
You can also transfer all or part of any funds saved in previous tax years without contributing to your annual allowance and then make further deposits for this tax year.
You can transfer between ISA providers, between different Tesco Bank Cash ISA Accounts as well as between ISA types, for example, Cash ISAs, Stocks and Shares 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, but there are some exceptions:
You can pay into and hold multiple ISAs in each tax year (for example, Cash ISA, Stocks and Shares ISA, Lifetime ISA, Help to Buy ISA).
The combined maximum amount you can save across all ISA types you hold is £20,000 for the current tax year. For example, if you saved £10,000 into a Cash ISA in this tax year, the maximum that can be saved into other types of ISA in the same tax year is £10,000.
You can transfer funds from previous or existing ISA accounts.
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.
If you don’t yet have a Tesco Bank Cash ISA you’ll need to:
Open a new account - you can do this online, or by giving us a call
During the application you’ll be asked if you’d like to transfer from another ISA provider
If you choose this option we’ll include an ISA Transfer Form with your Welcome Pack.
Return the ISA Transfer Form to us
We’ll handle the transfer with your current ISA provider on your behalf. It's important not to withdraw and move the funds yourself, as doing so would lose it’s tax free benefits and contribute to your annual allowance.
Once we receive your form, within 5 business days we’ll ask your existing Cash ISA provider to arrange for your funds to be transferred to your Tesco Bank Cash ISA. Your provider will have 5 business days from receiving the request to do this and the transfer should be completed within 15 business days of us receiving your form.
We’ll start paying interest from the day your existing Cash ISA provider sends us your money or 16 business days after we receive your form (if this is earlier). Transfers from ISAs other than Cash ISAs may take up to 30 days.
If you already have a Tesco Bank Cash ISA account and would like to transfer funds in please call us to arrange this.
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 the current tax year 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 current 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.
If you wish to move some or all of the balance of your Tesco Bank Cash ISA to another provider, please contact your new provider directly - they will arrange everything with us.
Protecting your savings
Your eligible deposits held by a UK establishment of Barclays Bank UK PLC are protected up to a total of £85,000 by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme. This limit is applied to the total of any deposits you have with the following: Barclays, Barclays Business Banking, Barclays Premier Banking, Barclays Wealth Management and Tesco Bank. Any total deposits you hold above the limit between these brands are unlikely to be covered.
Please ask for further information or visit www.fscs.org.uk.
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