Cash ISA
Easy-access
Flexible
Tesco Bank Instant Access Cash ISA
interest rate
£20,000
maximum per year
by WInvest
Who is Tesco Bank?
Tesco Bank is a UK retail bank part of the wider Tesco Group, offering everyday banking and savings products including Cash ISAs, current accounts and loans. Its savings range includes instant-access and fixed-rate Cash ISAs that can be opened and managed online or via its mobile app, with eligible deposits protected by the UK Financial Services Compensation Scheme (FSCS) up to specified limits.
Pros and cons
- Pros
- Competitive variable interest rate—for example, around 4.02% Gross/AER including a fixed bonus for the first 12 months
- Easy access & flexible—you can withdraw funds whenever you need to, and because the ISA is flexible you can replace withdrawn money within the same tax year without it affecting your ISA allowance
- Low minimum deposit (£1) and unlimited deposits up to your ISA limit, plus online, app and telephone management
- Cons
- After the bonus period ends (e.g., first 12 months), the interest reverts to a standard variable rate which may be lower and can rise or fall
- Variable rates mean your return isn’t guaranteed long-term, and could lag behind fixed-rate products at times
- As with many bank-branded ISA products, customer experience and service responsiveness can vary compared with dedicated digital savings challengers
What is a Cash ISA?
A Cash ISA is a savings account where all interest you earn is completely tax-free. Every UK resident aged 18 or over gets an annual ISA allowance at the start of each tax year. For the 2025/26 tax year (ending 5 April 2026), the allowance is £20,000, and from April 2027 it will reduce to £12,000. Cash ISAs come in different types, including easy-access accounts and fixed-term accounts.
What is an easy-access Cash ISA?
An easy-access Cash ISA allows you to withdraw your money whenever you need it, without paying any penalties. The interest rate is variable, so it can rise or fall over time. Some easy-access ISAs are also flexible, meaning withdrawn money can be replaced without affecting your allowance.
What is a flexible Cash ISA?
A flexible ISA lets you withdraw money and put it back in again within the same tax year—up to 5 April—without reducing your annual ISA allowance. For example, if you had £1,000 in a flexible Cash ISA and withdrew £500, you could pay that £500 back in later in the year without it counting towards your £20,000 allowance. Current-year ISA subscriptions can be replaced in any ISA (not just a flexible one) without using up your allowance, but previous-year subscriptions must be replaced into the same ISA you withdrew from. By contrast, withdrawing £500 from a non-flexible ISA would permanently reduce the amount you can pay in for that year, even if you later put the £500 back.
Who is Tesco Bank Instant Access Cash ISA good for?
The Tesco Bank Instant Access Cash ISA suits savers who want a tax-free, flexible savings account with easy access to their funds and a competitive introductory rate. It’s a good fit if you want flexible withdrawal and replacement rules, a low minimum opening balance, and the option to manage your ISA online, via app or phone. It’s especially useful for emergency funds or short-term savings goals, though long-term savers might also compare rates regularly to ensure they remain competitive.
WInvest Rating
4.3 ★★★★
4.0 ★★★★
So far easy to use particularly with the app. Sending an ISA transfer form by post is annoying as this should be done online for safety and convenience. I sent a form over a week ago only to find a few days later they send a welcome pack asking for the same information again just so that one form had to be signed to prove my identity. Very annoying and pointless. Like I say if it’s all done online, you could digitally sign documents and there would be less paperwork and it would be more convenient.
5.0 ★★★★★
I had a very odd situation of trying to move a child ISA for increased interest and the money not hitting the new account. Tesco were the only ones who listened and really took ownership of the issue. The receiver was not helpful at all. Tesco understood the problem, called when they said they would and kept trying to solve the issue. Financial Ombudsman assistance was needed in the end but from their side, Tesco couldn’t have been more helpful.
3.0 ★★★
I opened an easy access isa online. Everything was OK until I needed to set up a payment which proved tricky. There needs to be more guidelines….it’s a personal account not a business one and a few other pointers. Call centres were helpful and agreed more guidelines are needed to avoid confusion as they were often asked this. Also, you receive your welcome pack online asking you to return a letter, signed in the prepaid envelope? Again a call to the helpline clarified I’d also receive a hard copy ….again if this was mentioned it would have avoided waiting to talk to a real person (not a robot).
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Cash ISA
Easy-access
Flexible
Minimum deposit
Maximum allowance
£20,000 per year
How to open?
Interest paid
Is flexible?
To Note
- Rate drops after the first year