Cash ISA

Tax Year Account Opened/Funds Deposited           Tax-free/AER variable

2025/26                                                                                       2.70%

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 annually on 31 March each year, as long as the account continues to satisfy the ISA regulations. Interest is usually added to the account, but it can be paid to a bank account or another account with Scottish Building Society if you’d like.

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 12 months the estimated balance would be £1,027.00.

This estimate is just for illustrative purposes and doesn’t take into account any deposits or withdrawals you might make.

You can open a Cash ISA if you're aged 18 or over and resident in the UK for tax purposes. The minimum opening balance is £100.

You can open a Cash ISA in one of our Relationship Centres, or if it’s easier for you, you can download an application form and send it to us with a cheque for your initial deposit and proof of ID. Please read our Proof of ID checklist for details of ID we can accept.

You can make deposits in our Relationship Centres (cash or cheque), by post (cheques only) or by bank transfer. For more information see managing your savings account.

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 2025/26, 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.
  
  Annual interest is paid to your account once a year on 31 March. Or, if you prefer, the interest can be transferred to another account held with Scottish Building Society or paid to your bank account.

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 Cash 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 a Cash 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 Cash ISA at any time. 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 Cash 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.

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 Cash 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:

• up to £85,000 per eligible person, per bank, building society or credit union.

• up to £170,000 for joint accounts.

Find out more by visiting fscs.org.uk