ISA Saver Variable

0.05% tax free/AER on balances £1 or more.

It’s a variable interest rate. Your interest is paid 12 months after you open the account.

Yes. As this account pays a variable rate of interest it can change over time. We’ll always let you know of any planned changes to the rate. Our account conditions (PDF) explain when and how we do this. For example we might review the interest rate if the Bank of England base rate changes.

For example, if you deposit £1000.00 when you open the account, the balance after 12 months will be £1000.50.

This assumes:

• You don’t withdraw any money and interest is paid into this account.
• The interest rate stays the same.
• You make your first deposit payment on the day you open the account.
• You don’t add any more money.

This account can be opened and managed

• online
• on our app
• in branch
• by phone

Opening this account

• You must be 16 or over, resident in the UK for tax purposes and have a national insurance number.
• You can only open this account in your sole name.
• You must open with at least £1.
• You can transfer an ISA you have with us or another bank. Find out how to transfer an ISA. 
• If you have already saved into another cash ISA this tax year, you'll need to do an ISA transfer and move over the money you saved in this tax year. This includes cash ISAs with us or another bank.

Managing the account

As with all ISAs, there are some rules:

• You can save up to £20,000 in a combination of permitted ISAs this tax year.
• You can only save into one cash ISA in a tax year, unless you do an ISA transfer. This includes Help to Buy: ISAs and cash ISAs with other banks.
• If you change your mind, you can cancel the account free of charge within 14 days of opening.

Yes. You can make withdrawals from this account and there are no charges for doing so.

This is a flexible ISA, so if you make a withdrawal, you can pay that money back in to this account before the end of the tax year and not affect the amount you can save in your cash ISA tax free.

Any money you move to an account that isn't an ISA will lose its tax-free status. Tax treatment depends on your individual circumstances and may change in future.

After 12 months the account will change to an Instant ISA Saver. Before this happens, we'll contact you to explain your options and next steps.

Savings terms explained

Tax free means you will not pay income tax on your interest.

AER stands for Annual Equivalent Rate. Whenever you see an advert for a savings account which shows an interest rate, you will see the AER. This means you can use the AER to compare accounts. It shows what the interest rate would be if your interest was paid and compounded once each year.

For more definitions, view our savings glossary.