- The NatWest Cash ISA currently offers two rates; for for balances less than £24,999, the rate is 1.15% AER (variable) / 1.14% tax-free. For balances above £25,000, the rate is 2.45% (AER variable) / 2.42% tax-free.
- Interest on this account is paid monthly.
- You can open a NatWest Cash ISA from £1 and can withdraw money from this account at any time with no penalty. You can get the higher rate from £25,000+.
What is an instant
Cash ISA?
What is an Instant Cash ISA?
An Instant Cash ISA is a savings account in the UK that offers tax-free interest and instant, penalty-free access to your funds.
Is this account it right for me?
A Cash ISA could be a great choice for you if you're looking for a flexible way to save. It's an ideal account to help you make the most of your annual tax-free allowance.
How to research and compare Cash ISA accounts
Tips for comparing Cash ISAs
The right Cash ISA should match your savings style while helping you make the most of your tax-free allowance. Here are some things to keep in mind:
Don't limit your search to high street banks. Online banks, building societies, and app-based providers like Chip often offer more competitive rates. Compare their features, accessibility, and rates.
Even with 'instant access,' some ISAs may have restrictions on withdrawals or minimum deposits. Read the terms carefully. Remember, taking money out could impact your annual ISA allowance.
Don't just chase introductory or bonus rates. Check how long the boosted rate lasts and what the standard rate is afterward. The long-term rate is what matters most for your savings.
There are many financial tools that can help you understand your potential returns. Use our Interest Rate Calculator to see how your money could grow based on different rates and deposits.
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
Your interest is tax-free:
All interest you earn is protected from UK income tax, which allows your savings to grow faster and more efficiently.2
Enjoy instant access:
Many accounts offer immediate, penalty-free access to your funds, giving you the flexibility you need for unexpected costs.
Save on your terms:
You have complete control over how you save. You can deposit regular amounts or large lump sums at a pace that works for you.
Shop around for the best deal
With a variety of providers from high street banks to app-based fintechs, you can easily find the best rates, features, and accessibility to suit your needs.
Disadvantages
Potentially lower returns:
Instant Cash ISAs typically offer lower interest rates compared to accounts with more restrictions, such as fixed-rate or notice accounts.
Annual contribution cap:
Your deposits are limited to the annual ISA allowance (£20,000 for 2025/26). This can be a restriction if you have a large sum to save at once.
Possible withdrawal limits
Some accounts may limit the number of withdrawals you can make or penalise you with a lower interest rate if you take money out too often.
Rates could change:
Interest rates on these accounts are variable, which means your returns can fluctuate and may go up or down at any time.
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.
