What is an Easy Access ISA?
An easy access ISA is a type of cash ISA that allows you to withdraw money at any time without penalties, while still offering you the same tax advantages as all other ISAs, keeping all interest completely free from income tax.
Unlike fixed-rate ISAs, where your money is usually locked away for set periods of time in exchange for a better interest rate, Easy Access ISAs provide immediate access to your savings whenever you need them.
Easy access ISAs are tax efficient savings products that hold cash deposits rather than investments. As the name suggests, this particular type of ISA allows you to access your funds simply and easily, but because of that they usually offer lower interest rates than fixed rate ISAs.
These ISAs are sometimes known as ‘instant access ISAs’, although in practice your access to your funds isn’t always instantaneous even though it should be quick and straightforward.
How does an Easy Access ISA work?
Easy access ISAs work very much like standard savings accounts, except that they offer the same tax-free interest that other ISAs offer.
How does tax-free interest work?
Interest earned in your easy access ISA is completely free from income tax regardless of how much you earn or your tax rate. You don't need to declare ISA interest on your tax return, and HMRC never taxes it.
This differs from ordinary, run-of-the-mill savings accounts, where any interest above your Personal Savings Allowance (£1,000 for basic rate taxpayers, £500 for higher rate taxpayers, £0 for additional rate taxpayers) faces income tax charges at your marginal tax rate.
The tax benefit of an ISA becomes increasingly valuable as your savings grow and interest accumulates, particularly for higher and additional rate taxpayers who would otherwise pay 40% or 45% tax on the interest they earn above their allowances.
How do withdrawals work with an Easy Access ISA?
Easy access ISAs usually allow you to make unlimited withdrawals without penalties, giving you full access to your savings whenever you need it.
Some providers do have daily withdrawal limits, which caps how much you transfer out on any given day, but these limits are often quite high (for instance, some providers allow you to withdraw as much as £150,000 a day).
Although some people refer to these ISAs as ‘instant access’, in practice processing times for withdrawals can vary from one provider to the next. Many do offer same-day withdrawals, but some providers may take one to two days to process the withdrawal request and transfer your funds.
The most common ways to request withdrawals from your easy access ISA is via the provider’s website portal or dedicated mobile app, although many also allow telephone withdrawals and if you hold your ISA with a bank or building society it might be possible to do it in a branch.
It’s worth bearing in mind that initiating a withdrawal can result in a reduced rate with some providers, so it’s a good idea to check your own provider’s rules about this.
How is interest paid?
Interest payments are handled differently by different ISA providers, with monthly or annual interest payments being the most common payment arrangements.
Interest is usually paid directly into your ISA, where it continues growing tax-free and doesn't count against your annual ISA allowance.
There are advantages to choosing a provider that offers monthly interest payments, since that means you’ll benefit from compound interest, where you earn additional interest on those monthly interest payments.
Example:
James has £50,000 in an easy access ISA that offers a 4% AER (Annual Equivalent Rate) and pays interest monthly, which means 0.33% interest will be added to his ISA each month.
So interest of £165 will be deposited into James’ ISA in month 1, but the following month he will earn 0.33% interest on the £165 that was added in month 1, as well as 0.33% interest on the original £50,000.
What is a Flexible ISA?
Flexible ISAs offer an additional feature beyond easy access, allowing you to replace withdrawn money without using your annual allowance.
How flexible ISA replacement rules work
HMRC's flexible ISA rules allow money that’s been withdrawn from an ISA to be replaced within the same tax year without this replacement counting as a new contribution that uses some of your ISA allowance.
You can only replace money that was withdrawn from the same ISA account, so depositing new funds into a different ISA would use part of your annual ISA allowance.
It’s also important to note that these flexibility rules only apply to the withdrawal of deposits made in the current tax year. If you withdraw money that you contributed in previous years, then you can’t replace those funds without using part of your annual ISA allowance.
Worked examples of flexible ISA mechanics
Let’s take a look at some examples to get a better understanding of how flexible ISAs work in practice.
Example 1 using flexible ISA:
Sarah has £40,000 in her flexible easy access ISA, comprising £35,000 from previous tax years and £5,000 she has contributed this tax year. She's used £5,000 of her £20,000 allowance. She withdraws £10,000 for home repairs.
This means that later in the current tax year Sarah can deposit £20,000 in total back into her flexible ISA without exceeding her allowance (since she has contributed £5,000 in the current tax year she can deposit £5,000 of the £10,000 she withdrew, plus the remaining £15,000 of her annual ISA allowance she hasn’t used yet).
Example 2 using non-flexible ISA:
Tom has £40,000 in his non-flexible easy access ISA with the same breakdown (£35,000 from previous years, £5,000 this year). He's used £5,000 of his £20,000 allowance. He withdraws £10,000.
Because Tom’s easy access ISA doesn’t offer the same flexibility as Sarah’s one, this means Tom can only deposit a further £15,000 in this tax year, as that’s his remaining allowance amount.
Which providers offer flexible ISAs?
Since some providers don’t offer flexible ISAs, if there’s any possibility that you might need to temporarily withdraw money from your ISA before replacing it again later in the year then it would be a good idea to opt for a provider who does offer this.
Providers who offer flexible ISAs | Providers who don’t offer flexible ISAs |
Barclays | HSBC |
Lloyds | First Direct |
Bank of Scotland | NatWest |
Halifax (variable ISAs only) | RBS |
Nationwide | Santander |
Skipton Building Society | Atom Bank |
Coventry Building Society | NS&I |
Trading 212 | Post Office |
Monument | Shawbrook Bank |
Nottingham Building Society |
|
What happens to your flexible allowance if you transfer?
You lose your flexible allowance when transferring to another provider, even if the new provider offers flexible ISAs as well.
Flexible allowance can’t be transferred between accounts or between providers, because the replacement rights only apply within the original account where funds were withdrawn. This means you’ll lose your flexible allowance if you transfer to another provider, even if the new provider offers flexible ISAs as well.
Is an Easy Access ISA always flexible?
No, easy access and flexibility are two separate features of ISA accounts that don't always come together.
- ‘Easy access’ means you can withdraw money anytime without penalties or notice periods
- ‘Flexible’ means you can replace withdrawn money without using your allowance.
Not all Easy Access ISAs are flexible
An ISA can be easy-access without being flexible. For instance, Atom Bank's Easy Access ISA allows you to make withdrawals any time (easy access) but doesn't let you replace that money without using your allowance (not flexible).
On the other hand, Trading 212's Easy Access ISA offers both features, allowing you to make withdrawals any time and also allowing you to replace withdrawals without using allowance.
How to check if your ISA is flexible
The best place to start is the provider’s website, because they’ll usually make it clear if their easy access ISA also offers flexibility. If this isn’t explicitly stated on the product page then their terms and conditions should include this information, because ISA providers have an obligation to include this type of info in their T&Cs.
If you’re still struggling to confirm whether a particular provider’s ISA offers flexibility then the next step is to give that provider a call.
Why some providers don't offer flexibility
Flexibility is optional under HMRC rules, so ISA providers can choose whether or not to offer it.
Offering flexibility creates additional administrative complexity for providers, because they’ll have to track which portions of ISA balances represent current year contributions, previous year contributions, and withdrawn amounts that are eligible for replacement.
Easy Access ISA vs other savings options
Understanding how Easy Access ISAs compare with alternatives helps you choose the right savings vehicle.
Easy Access ISA vs Fixed Rate ISA
Fixed rate ISAs lock your money away for years at a time in exchange for higher, guaranteed interest rates. Flexibility vs better rates is basically the core trade-off between the two.
In addition to a difference in flexibility when accessing your money, there’s also usually a pronounced difference between easy access and fixed rate ISAs when depositing funds as well. You can usually add money to an easy access ISA any time you want, but most fixed rate ISAs only accept lump sum deposits when you open them, although a few fixed rate ISA providers do offer a ‘funding window’ of up to 30 days to deposit money.
Easy Access ISA vs Notice ISA
Notice ISAs are similar to fixed rate ISAs, except that the timeframe they require for withdrawals is usually months rather than years.
Typical notice periods for withdrawals from a notice ISA might be 30, 60, 90, or 180 days, whereas fixed rate ISAs often lock your money away for 1, 2, 3 or 5 years.
Because they aren’t as flexible as easy access ISAs, notice ISAs usually offer slightly better interest rates. However, their rates are usually lower than fixed rate ISAs since your money isn’t locked away for as long.
Easy Access ISA vs regular savings account
Regular savings accounts sometimes offer higher headline interest rates than easy access ISAs, particularly during promotional periods or if the savings account has restrictions like maximum monthly deposits.
However, even if a standard savings account does offer a better rate it won’t always prove to be the better choice, since easy access ISAs offer tax benefits that standard savings accounts can’t offer. This is particularly true for higher rate taxpayers or people with larger balances, who stand to gain more from those tax benefits.
Easy Access ISA vs Standard Savings Account: When to Switch
When we take into account your Personal Savings Allowance (PSA), coupled with the tax differences between an easy access ISA (where interest is not taxable) and a standard savings account (where interest is taxable if it’s above your PSA), it’s possible to calculate the point at which it’s better to switch from a savings account with a better interest rate to an ISA with a lower one.
Savings Amount | Interest Rate | Annual Interest | Standard Savings Account (After Tax) | Easy Access ISA | Better Choice |
Basic Rate Taxpayer (£1,000 PSA) | |||||
£10,000 | 4.5% vs 4.0% | £450 vs £400 | £450 (no tax, within PSA) | £400 | Standard savings |
£20,000 | 4.5% vs 4.0% | £900 vs £800 | £900 (no tax, within PSA) | £800 | Standard savings |
£25,000 | 4.5% vs 4.0% | £1,125 vs £1,000 | £1,100 (£25 tax on £125 over PSA) | £1,000 | Standard savings |
£30,000 | 4.5% vs 4.0% | £1,350 vs £1,200 | £1,280 (£70 tax on £350 over PSA) | £1,200 | Standard savings |
£35,000 | 4.5% vs 4.0% | £1,575 vs £1,400 | £1,460 (£115 tax on £575 over PSA) | £1,400 | Standard savings |
£40,000 | 4.5% vs 4.0% | £1,800 vs £1,600 | £1,640 (£160 tax on £800 over PSA) | £1,600 | Standard savings |
£50,000 | 4.5% vs 4.0% | £2,250 vs £2,000 | £2,000 (£250 tax on £1,250 over PSA) | £2,000 | Equal (switch point) |
£60,000 | 4.5% vs 4.0% | £2,700 vs £2,400 | £2,360 (£340 tax on £1,700 over PSA) | £2,400 | Easy Access ISA |
Higher Rate Taxpayer (£500 PSA) | |||||
£10,000 | 4.5% vs 4.0% | £450 vs £400 | £450 (no tax, within PSA) | £400 | Standard savings |
£12,500 | 4.5% vs 4.0% | £563 vs £500 | £538 (£25 tax on £63 over PSA) | £500 | Standard savings |
£15,000 | 4.5% vs 4.0% | £675 vs £600 | £605 (£70 tax on £175 over PSA) | £600 | Standard savings |
£20,000 | 4.5% vs 4.0% | £900 vs £800 | £740 (£160 tax on £400 over PSA) | £800 | Easy Access ISA |
£30,000 | 4.5% vs 4.0% | £1,350 vs £1,200 | £1,010 (£340 tax on £850 over PSA) | £1,200 | Easy Access ISA |
Additional Rate Taxpayer (£0 PSA) | |||||
£10,000 | 4.5% vs 4.0% | £450 vs £400 | £248 (£203 tax at 45%) | £400 | Easy Access ISA |
£20,000 | 4.5% vs 4.0% | £900 vs £800 | £495 (£405 tax at 45%) | £800 | Easy Access ISA |
£30,000 | 4.5% vs 4.0% | £1,350 vs £1,200 | £743 (£608 tax at 45%) | £1,200 | Easy Access ISA |
Easy Access ISA vs Stocks and Shares ISA
Stocks and Shares ISAs allow you to invest your savings in the financial markets rather than merely holding cash, which means their returns are less predictable (and may even be negative if the markets suffer a downturn), but they also have the potential to achieve much higher rates of return than a regular interest rate.
While easy access ISAs preserve your capital their returns are usually very modest, and in some cases that interest rate may be below the rate of inflation, which means the value of your savings would actually fall in real terms.
Stocks and shares ISAs risk your capital but have the potential for inflation-beating growth over long periods. That’s why many ISA specialists recommend a stocks and shares ISA for long-term savings goals (10+ years), while cash ISAs (like easy access ones) might be more appropriate if you’re likely to need to withdraw your funds within the next few years.
You can hold both types of ISAs in the same tax year, splitting your £20,000 annual ISA allowance between them to achieve a balance of safety and growth potential.
Easy Access ISA Compared to Alternatives
Feature | Easy Access ISA | Fixed Rate ISA | Notice ISA | Stocks & Shares ISA | Regular Savings |
Access | Immediate | Locked until maturity | 30-180 days notice | Need to sell investments first (may take a few days) | Usually immediate |
Tax treatment | Tax-free interest | Tax-free interest | Tax-free interest | Tax-free gains and dividends | Taxed above PSA |
Risk | Very low (capital protected) | Very low (capital protected) | Very low (capital protected) | Medium to high (market risk) | Very low (capital protected) |
Returns | Variable, modest | Fixed, higher | Fixed, moderate | Potentially higher long-term | Often higher than Easy Access |
Flexibility | Can add/withdraw anytime | Lump sum only, locked in | Can add, restricted withdrawals | Can add/withdraw (sell investments) | Monthly deposits required |
Ideal for | Emergency funds, short-term goals | Known savings goals, higher returns | Planned large expenses | Long-term growth, 10+ years | Building regular saving habit |
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Do you actually need an Easy Access ISA?
No, not necessarily. Some people aren’t likely to see significant benefits from an ISA over a standard savings account, particularly if they only have a small amount of savings that generates a modest amount of interest that falls below their Personal Savings Allowance.
Understanding the Personal Savings Allowance (PSA)
The Personal Savings Allowance provides tax-free interest for most savers before ISAs become necessary.
Basic rate taxpayers receive £1,000 tax-free interest per year. If you earn £950 interest from all your savings accounts, then you pay no tax on that interest whether it's in an ISA or a standard savings account.
Higher rate taxpayers receive £500 tax-free interest per year, half the basic rate allowance.
Additional rate taxpayers don’t receive any Personal Savings Allowance, which means they stand to gain the most from an ISAs tax benefit.
When you don't need an ISA wrapper
As shown in the ‘Easy Access ISA vs Standard Savings Account’ table above, basic rate taxpayers may not benefit from an ISA wrapper until they’ve accumulated savings of around £50,000. However, the point at which an ISA wrapper is beneficial will depend on the comparable interest rate and you’ll also need to account for the maximum £20,000 annual ISA allowance when considering transferring savings from a Standard Savings Account.
Do I Need an Easy Access ISA? - Decision Framework
Scenario | Need Easy Access ISA? | Reasoning |
Basic rate taxpayer, under £25,000 savings at 4% | Probably not essential | Within £1,000 PSA, regular savings accounts may pay more |
Higher rate taxpayer, under £12,500 savings at 4% | Probably not essential | Within £500 PSA, though closer to threshold |
Additional rate taxpayer, any amount | Yes, essential | No PSA, all interest taxed at 45% otherwise |
Basic rate taxpayer, over £25,000 savings | Yes, beneficial | Will exceed PSA, ISA protects growth from tax |
Higher rate taxpayer, over £12,500 savings | Yes, beneficial | Will exceed PSA, paying 40% tax on excess interest |
How much can you put into an Easy Access ISA?
Easy Access ISA contributions are governed by the same annual allowance rules as all other types of ISAs.
ISA allowance rules
For the 2025-26 tax year the annual ISA allowance is £20,000 across all your ISAs combined (it’s not £20,000 per ISA type or per account).
The tax year runs from 6th April to 5th April, which means that allowance resets every 6th April regardless of how much of the allowance you used in the previous year.
You can split your £20,000 across cash ISAs (including easy access ones), stocks and shares ISAs, lifetime ISAs (although you can only contribute £4,000 to a lifetime ISA, but that £4,000 counts towards your overall £20,000 ISA allowance), and innovative finance ISAs however you wish, provided the total doesn't exceed £20,000.
It’s worth noting that the ISA allowance rules are due to change in April 2027, when anyone under the age of 65 will only be able to contribute a total of £12,000 to cash ISAs in any single tax year, even though the overall annual ISA allowance will remain the same at £20,000.
Can you open more than one Easy Access ISA?
Prior to April 2024 you could only open one type of ISA in each tax year, but those rules have now changed and you can open multiple cash ISAs per tax year, including multiple easy access ISAs.
You're still limited to £20,000 total across all ISAs, but you can now split this between several easy access ISAs with different providers if you wish. This can be a useful approach if you’re worried about your ISA providers changing interest rates, or if you want to spread your risk by dividing up your money across different providers.
Can you add and withdraw money throughout the year?
Yes, adding and withdrawing money throughout the year is one of the key benefits of easy access ISAs.
Most easy access ISA providers will allow you to make regular deposits monthly, weekly, or ad hoc whenever you have spare money to save, building your balance gradually rather than needing lump sums.
You can withdraw anytime without penalty for emergencies or planned expenses, then resume contributing later in the same tax year.
Of course, there will probably be some provider-specific limits you’ll need to bear in mind, including daily deposit maximums or daily withdrawal limits.
What interest rates do Easy Access ISAs pay?
The interest rates on easy access ISAs are variable and are usually lower than fixed-rate alternatives, because you’re agreeing to a slightly lower rate in exchange for more flexibility.
Variable interest rates explained
With variable interest rates, your provider can choose to increase or decrease the interest rates on your easy access ISA whenever they want, although they have to notify you of any changes.
Rate increases are usually applied immediately, whereas if your rate is being cut providers are required to notify you at least 14 days in advance. This gives you time to consider transferring if you're unhappy with the new rate.
Providers change rates quarterly for some accounts, in line with Bank of England base rate changes for others, or annually based on their funding needs and competitive positioning.
Some ISAs explicitly track the Bank of England base rate, guaranteeing your rate moves in line with monetary policy. Others set rates independently based on market conditions.
Why rates may lag behind fixed products
Easy access ISAs generally pay anywhere from 0.3% to 1% less than equivalent fixed rate ISAs, with providers paying you less because of the flexibility to access your money anytime.
When base rates are rising, fixed rate products often offer significantly higher rates as providers lock in funding at current costs. When rates are falling, the gap between fixed rate and easy access ISAs tends to narrow.
Bonus rates and introductory offers
Many providers offer bonus rates for limited periods, boosting your returns initially before dropping to lower base rates.
It’s common for these bonus rates to last for 12 months from the date you open the ISA, although some providers offer 6 month or 18 month promotional periods.
Once this bonus period ends, your rate drops back in line with the base rate, often making your ISA uncompetitive compared to current market rates. Providers should notify you before this happens, but many savers forget and leave money earning poor rates.
Bonus restrictions
There are a few restrictions you should bear in mind if you’re considering an ISA that offers a bonus rate. Those bonuses usually aren't paid on transfers from previous tax years, only on new contributions made this tax year.
Some providers also only pay bonuses on balances up to certain thresholds (£50,000, for example).
If you make a withdrawal from your ISA, some providers will also reduce the bonus rate for the month that withdrawal was made.
Are Easy Access ISAs worth it?
Whether or not easy access ISAs are the right savings product for you will depend entirely on your circumstances, your savings amounts, and your savings goals.
When an Easy Access ISA makes sense
There are a number of scenarios where easy access ISAs could be a suitable option to help you meet your savings goals.
Emergency funds
Most financial advisers recommend 3 to 6 months' expenses in easily accessible savings for unexpected costs, and easy access ISAs offer this accessibility while earning tax-free interest.
Short-term savings goals
Similar to emergency funds that need to be accessible at short notice, if you’re saving for a big expense (such as a wedding, new car, or the deposit on a new home) then easy access ISAs can help you grow your savings in the interim without locking your money up for extended periods.
High earners
If you’re an additional rate taxpayer then easy access ISAs can compensate for the fact you don’t have a Personal Savings Allowance. You might decide to combine a stocks and shares ISA for longer-term growth potential with an easy access ISA for shorter-term spending needs, for instance.
When they may not be suitable
On the other hand, there are a few scenarios where it might make more sense to forgo an easy access ISA in favour of a stocks and shares ISA or a regular savings account.
Earned interest is below your Personal Savings Allowance
If your savings aren’t substantial (and you aren’t an additional rate taxpayer) then your earned interest may be below your Personal Savings Allowance, in which case a regular savings account might offer better interest rates than an easy access ISA.
Inflation-beating growth goals
If you’re hoping to see your savings grow faster than the rate of inflation then you might be better to opt for a stocks and shares ISA, because many easy access ones offer interest rates at or below the rate of inflation.
Regular savings accounts pay significantly better rates
It’s sometimes possible for regular savings accounts to offer significantly better rates than easy access ISAs, particularly with promotional accounts.
Using Easy Access ISAs alongside other ISAs
Many take a blended approach to ISA savings in order to balance multiple objectives effectively. For instance, you might decide to hold £5,000 in an easy access ISA for emergencies, £10,000 in a fixed rate ISA for better returns on money you won't need for several years, plus £5,000 in a stocks and shares ISA for long-term growth.
What risks should you consider when opening an Easy Access ISA?
While easy access ISAs preserve and protect your capital, there are a few risk factors to bear in mind.
Inflation risk
This is one of the main risks with easy access ISAs, because the interest rates they offer are usually fairly modest and may therefore be in line with or even below the rate of inflation on many occasions. If inflation does exceed your ISA’s interest rate that means your purchasing power would gradually be eroded even while the balance in your account grows.
Interest rate risk
Since easy access ISAs have variable rates, those rates can fall without much warning, reducing your returns unexpectedly.
Behavioural risk
Because ‘easy access’ is baked into these savings products, it’s possible they may encourage unnecessary or ill-considered withdrawals by some accountholders, particularly for people lacking savings discipline who dip into savings for non-emergencies.
If an individual is more inclined to dip into their savings unnecessarily in this way, then a notice ISA might be a more suitable option, since those ISAs require the accountholder to wait at least a month (and in some cases longer) before they can dip into those funds.
ISA transfers and Easy Access ISAs
Can you transfer an Easy Access ISA at any time?
Yes, you can transfer an easy access ISA to another provider at any time, unlike fixed rate ISAs where transfers might trigger early access penalties.
Some providers accept partial transfers (for example, where you move £5,000 of a £10,000 balance to a different ISA provider), while others only accept full balance transfers.
Atom Bank, for example, only allows full transfers, not partial ones, so you’d have to transfer your entire balance if you wanted to transfer to Atom.
How to transfer correctly and avoid losing tax wrapper
The first thing to bear in mind is that you should never withdraw the money from your existing provider and then deposit it with the new providers, because doing that would mean it would be considered a new contribution rather than an ISA transfer, and would therefore use your ISA allowance unnecessarily.
Instead, you should get the new ISA provider to initiate the transfer via their official ISA transfer process. They’ll then handle everything for you, contacting your old provider on your behalf and ensuring the tax-free wrapper transfers intact.
How long do ISA transfers take?
ISA transfers usually take around 15 working days from initiation to completion, which equates to three weeks. However, transfers can take longer if issues arise including incomplete paperwork, mismatched details, or old provider delays.
Your old provider must send the money within 5 working days of receiving the transfer request from your new provider.
What happens to flexible allowance when you transfer?
You lose any unused flexible allowance when transferring between providers, because replacement rights only apply within the original account.
What protection does an Easy Access ISA have?
FSCS protection explained
The Financial Services Compensation Scheme protects up to £120,000 per authorised firm if you have a cash ISA, or up to £85,000 per firm if you have a stocks and shares ISA.
It’s important to bear in mind that this protection isn’t per brand, so if you had multiple ISAs with different brands that all happened to be owned by the same firm then the FSCS protection limit would not be shared across those brands.
The FSCS does offer ‘temporary high balance protection’ that provides £1 million protection for up to 6 months after receiving large sums from property sales, inheritances, redundancy payments, or insurance payouts, but that temporary protection is unlikely to apply with most ISAs because of the £20,000 a year contribution limit.
Protecting more than £120,000
Since rule changes in 2024 mean you can now open multiple ISAs of the same type in each tax year, it might be worth spreading your £20,000 annual ISA allowance across multiple different firms in order to maximise your FSCS protection. The key is to ensure that those ISA providers are all independent firms, rather than merely different financial brands that share the same parent company.
FCA regulation
All ISA providers must be authorised by the Financial Conduct Authority, so you should check the FCA Register before opening any ISA.
Consumer protection rules enforced by the FCA include clear terms and conditions, fair treatment of customers, and proper complaints handling procedures.
What protection does not cover
There are some risks that these financial protections won’t cover, including inflation risk (where the level of interest you earn is lower than the rate of inflation), and interest rate risk (where your provider can choose to reduce the interest rate on your ISA).
How to open an Easy Access ISA
It’s very straightforward to open an easy access ISA, and with some providers the ISA can be open within a matter of minutes.
What you need to apply
You'll need your National Insurance number for tax purposes, and proof of identity such as a passport or driving licence for anti-money laundering verification.
You might have to link your UK bank account to your ISA account too, although some providers might let you do this after the ISA is open.
Finally, you might need to provide proof that you’re a UK tax resident, since ISAs are normally only available to people resident in the UK.
Step-by-step opening process for opening an Easy Access ISA
- Step 1: Compare rates and providers using comparison sites like MoneySavingExpert or Moneyfacts, checking both base rates and bonus rates plus flexible ISA availability.
- Step 2: Apply online through the provider’s website or app, in branch for providers with physical locations, or by phone for some traditional providers.
- Step 3: Complete identity verification by uploading documents or using electronic verification systems that check credit reference data.
- Step 4: Link an external bank account from which you'll fund deposits and receive withdrawals.
- Step 5: Make an initial deposit meeting the provider's minimum (this might be as low as £1 with some providers, although others might require you to deposit as much as £1,000), although some providers accept zero initial deposits.
- Step 6: The cooling-off period then gives you 14 days to cancel without penalty if you change your mind, standard for financial products.
How long does it take to open an Easy Access ISA?
Instant approval happens with some app-based providers like Trading 212, offering immediate account opening and access.
But most providers take 1 to 3 working days for identity verification and account setup.
How to choose the right provider
First and foremost, make sure the provider you’re considering is legitimate and FCA-authorised.
After that, the next factors to consider when choosing a provider are:
- The interest rates and bonus rates they offer
- Whether or not they offer flexibility alongside easy access
- Their minimum funding amount (if any)
- Their transfer policies, including whether they accept partial transfers
Funding options
There are a few funding options to bear in mind when opening or contributing to an ISA.
- Lump sum deposits from linked accounts allow you to contribute your full allowance immediately if you have funds available.
- Standing orders for regular monthly deposits help build savings gradually and maintain discipline.
- ISA transfers from other providers don't use your annual allowance, letting you consolidate previous savings while preserving current year allowance for new contributions.
Easy Access ISA Frequently Asked Questions
Can I withdraw money from an Easy Access ISA anytime?
Yes, most easy access ISAs allow unlimited withdrawals without penalty. However, there may be daily limits on withdrawals, and those can vary by provider.
Does withdrawing affect my ISA allowance?
It depends whether your ISA is flexible or not. With flexible ISAs, you can replace withdrawn money within the same tax year without using more of your allowance.
With non-flexible ISAs, withdrawals permanently use your allowance for that year, and replacing the money counts as a new contribution rather than a replacement.
Is an Easy Access ISA better than a Fixed ISA?
It depends on your needs.
Easy access ISAs provide flexibility and are ideal for emergency funds, but fixed rate ISAs normally pay higher rates and might be the right option if you won't need access in the short term.
When deciding between the two, you should consider your timeline, whether you might need the money, and how much the rate difference matters for your balance.
Can I transfer an Easy Access ISA?
Yes, you can transfer easy access ISAs anytime to another provider using the official ISA transfer process. Contact your new provider to initiate the transfer, which normally takes about 15 working days.
Can interest rates change?
Yes, Easy Access ISAs have variable rates that can change at your provider's discretion.
Providers have to give you at least 14 days notice for rate decreases but can implement increases immediately, notifying you within 30 days afterwards. This means your rate can fall unexpectedly, making regular rate reviews important.
Can I lose money in an Easy Access ISA?
It’s highly unlikely. Your capital is protected up to £120,000 per banking institution through FSCS protection, so you can't lose your original deposit if your provider fails and your total amount is below this threshold.
Is an Easy Access ISA the same as an Instant Access ISA?
Yes, these terms are used interchangeably by providers to describe the same product: a cash ISA allowing withdrawals anytime without penalties.
What are the best Easy Access ISA rates?
Rates change daily as providers compete for deposits and adjust to market conditions. Use comparison tools on MoneySavingExpert or Moneyfacts to compare current rates.
Can I have an Easy Access ISA and a Fixed Rate ISA at the same time?
Yes, since April 2024 you can open multiple cash ISAs per tax year, including both easy access and fixed rate ISAs. You're still limited to £20,000 total across all your ISAs, but you can split this between different account types.
Do Easy Access ISAs have fees or charges?
Most easy access ISAs have no account fees, monthly charges, or withdrawal penalties, although you should check specific terms. Some providers might charge inactivity fees if you don't use your account for extended periods, or closure fees, although both are rare.
What happens to my bonus rate after 12 months?
Your bonus ends and your rate drops back down, often substantially lower. Your provider should notify you in advance of this happening. Consider transferring to a new provider offering a bonus rate to maintain competitive returns rather than accepting the lower base rate.
Can I transfer an Easy Access ISA without losing my flexible allowance?
No, you lose your flexible allowance when transferring between providers even if both offer flexible ISAs, because flexible replacement rights only apply within the original account.
Can I make partial transfers from my Easy Access ISA?
It depends on your provider’s policies. Some do accept partial transfers, where you move part of your balance to them while keeping the rest with your original provider, while others like Atom Bank only allow full balance transfers.
Where to next?
- What is a Stocks and Shares ISA?Discover what a stocks and shares ISA is, how it works, and when you might use one to help grow your savings through investing.
- What is a Cash ISA?Learn what a Cash ISA is, how it works, the 2025 allowance rules, interest rates, FSCS protection and whether a Cash ISA is right for you.
- How to Close an ISALearn how to close an ISA safely without losing tax benefits. Understand ISA transfers, withdrawal rules, penalties, and what happens to your savings when you close an ISA.