- The TSB Cash ISA Saver currently offers four rates; for balances between £1 to £24,999, the rate is 1.20% AER/tax-free. For balances between £25,000 to £49,999, the rate is 1.25%. For balances between £50,000 to £99,999, the rate is 1.30% AER/tax-free. For balances above £100,000, the rate is 1.45% AER/tax-free. These rates apply a 12 month bonus rate.
- After 12 months, the following rates apply; 1.20% to 1.00% AER/tax-free. 1.25% to 1.05% AER/tax-free. 1.30% to 1.10% AER/tax-free. 1.45% to 1.25% AER tax-free.
- Interest on this account is paid annually.
- You can open a TSB Cash ISA Saver from £1 and can withdraw money from this account at any time with no penalty. You can get higher rates from £25,000+.
What is an instant
Cash ISA?
What is an Instant Cash ISA?
An Instant Cash ISA is a UK savings account that allows your money to grow tax-free, while giving you immediate access without any penalties.
Is this account it right for me?
A Cash ISA could be perfect if you want a flexible way to grow your savings while making the most of your annual tax-free allowance.
How to research and compare Cash ISA accounts
Tips for comparing Cash ISAs
Finding the right Cash ISA means choosing one that suits your savings habits and helps you make the most of your tax-free allowance. Keep these points in mind:
Don’t limit yourself to high street banks. Online banks, building societies, and fintech apps, like Chip, often offer higher rates and useful features.
Even “instant access” accounts may have withdrawal limits or minimum deposit requirements. Check the fine print, as withdrawals can affect your annual ISA allowance.
Introductory or bonus rates are temporary. Focus on the standard rate and how long it applies to see the real impact on your savings.
Financial tools can help you estimate how your savings could grow. Try our Interest Rate Calculator to compare different deposits and rates.
Is it worth having a Cash ISA?
An instant Cash ISA can be a smart way to grow your savings while keeping them accessible. But, like any other financial product, it’s worth weighing up the benefits and drawbacks before you decide.
Advantages
Tax-free growth:
Your interest is free from UK income tax, helping your savings grow more quickly and efficiently.2
Immediate access:
Access your money whenever you need it, without penalties—perfect for unexpected expenses or shifting priorities.
Flexible saving options:
Deposit funds regularly or add lump sums at your convenience to suit your saving style.
Wide range of accounts:
From traditional banks to app-based fintechs, you’ll find options with competitive rates, features, and easy accessibility.
Disadvantages
Lower interest rates:
Instant Cash ISAs usually offer less interest than fixed-rate or notice accounts because they prioritise flexibility and easy access.
Annual contribution limits:
You can save only up to the yearly ISA allowance (£20,000 for 2025/26), which may be limiting for larger deposits.
Potential withdrawal restrictions:
Some accounts limit the number of withdrawals or reduce your interest if you access your funds frequently.
Variable rates:
Interest rates can change at any time, so your earnings may increase or decrease.
People also ask
Common Cash ISA questions
With competitive rates now available, it can be just as rewarding as other savings accounts while protecting you from future tax changes. It’s a simple, secure way to make the most of your money.
They remain a popular, government-backed way to save tax-free, and current proposals only look at adjusting allowances, not removing them. For savers, they’re still a secure and future-proof option.
