- 4.75% Tax-free/AER fixed until 24 October 2028
- Guaranteed interest rate for the term of the account
- Typically offers a higher interest rate than our Cash ISA
- Open with a deposit of between £500 and £20,000
The main benefit of an E-ISA is the tax advantages it offers you, because any interest you earn is tax-free. Setting up an E-ISA account opens the door to tax-free savings and you’ll have easy, secure access to your account online whenever you need it.
Whether you want to put money aside for a special occasion or save for the longer term as part of your plans for retirement, opening an E-ISA with us couldn’t be simpler.
The rules around ISAs changed on 6 April 2024 and you can now open ISAs with different providers, previously you were only able to open one type of ISA per tax year. This means you can now save a total of £20,000 across all your ISA providers in each tax year.
You can apply online, open with £500 and save up to £20,000 each tax year, tax-free and you can transfer funds from Cash ISAs or Stocks and Shares ISAs held with another ISA provider to your Scottish Building Society E-ISA through our transfer process, safeguarding your tax-free entitlement.
Managing your account is quick and easy by using our secure online accounts service SBS online. Once you've registered, it’s easy to open other savings accounts online too.
You can find out more about SBS Online here
If you're ready to get started, you can apply now
Questions we get asked
Tax Year Account Opened/Funds Deposited Tax-Free/AER Fixed
2026/27 4.75%
AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year.
Interest is paid tax-free on 24 October each year, as long as the account continues to satisfy the ISA regulations, until the account matures on 24 October 2028.
The interest rate is variable and can change – if it increases, we’ll update our website and, if the rate goes down, we’ll write to you 14 days before it changes.
You can find out more about changes to our interest rates by reading our Savings Terms & Conditions.
After 2 years the estimated balance would be £1,097.26.
This estimate is just for illustrative purposes and doesn’t take into account any deposits or withdrawals you might make.
You can open an E-ISA if you're aged 18 or over and resident in the UK for tax purposes. The minimum opening balance is £500.
You can apply to open an account with our quick and secure online accounts service SBS Online. Once you've registered, you can open other savings accounts online too. You can find out more about SBS Online here.
Or, if you're ready to get started, you can apply now.
The Government sets an ISA limit on how much you can save in all your ISAs each tax year (from 6th April – 5th April). For 2026/27, your full annual ISA allowance is set at £20,000.
There are 4 types of ISA - cash ISA, stocks and shares ISA, innovative finance ISA and Lifetime ISA. Not all providers will offer each one.
Interest is calculated daily from the day after you deposit your cash or cheque until the date you withdraw your funds.
Interest will be added to your account on 24 October each year until the account matures on 24 October 2028. Or, if you prefer, the interest can be transferred to another Scottish Building Society account or paid to your bank.
Whatever your personal tax status, you won’t have to pay income tax on the interest earned on a cash ISA under current regulations, provided that you keep to the annual subscription limits and other rules of operation laid down by HM Revenue & Customs. You don’t need to mention a cash ISA on any tax return you fill in. Any interest earned is free of Capital Gains Tax.
Interest earned from your E-ISA will not count towards your Personal Savings Allowance.
The rules around ISAs changed on 6 April 2024 and you can now open more than one ISA of the same type. For Cash ISAs, you can now save a total of £20,000 in the same tax year with different providers.
You can open an E-ISA with us as long as you’ve not exceeded the £20,000 annual ISA allowance for the same tax year.
You can withdraw money from your E-ISA at any time using SBS Online. You can make an unlimited number of withdrawals to a nominated bank account without notice, penalties or charges.
You can make withdrawals in our Relationship Centres too. You’ll need to bring proof of ID with you (for example, a valid Passport) and your signature (for example, a valid driving licence).
Our E-ISA isn't a flexible ISA, that means the maximum amount you can deposit in any one tax year is £20,000, regardless of any withdrawals you make in that tax year.
If you want to make ISA transfers, you can transfer money in from other Cash ISAs and Stocks and Shares ISAs.
For more information see managing your savings account.
Your ISA savings will be included in your estate for inheritance tax purposes. However, any accrued ISA savings can be passed to your spouse or civil partner upon death, allowing the surviving spouse or civil partner to continue receiving the tax benefits. Please contact us for more details.
The deposits in your E-ISA are protected by the Financial Services Compensation Scheme, the UK’s deposit guarantee scheme.
If your bank or building society fails and can’t pay back your money, FSCS can automatically pay you compensation:
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up to £120,000 per eligible person, per bank, building society or credit union.
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up to £240,000 for joint accounts.
Find out more by visiting fscs.org.uk
If you want to transfer funds in from existing ISAs with another provider, please complete the relevant transfer authority form.
If you want to transfer funds from an existing Scottish Building Society savings account or ISA, please complete our withdrawal form.
We're here to help
You can visit us in our Relationship Centres, or call us on 0333 207 4007. Our lines are open 9am - 5pm Monday to Friday (10am - 5pm Wednesday). Calls may be recorded and/or monitored.