Online ISA

Our Online ISA may be right for you if you want to manage your account online, save when it suits you and prefer the comfort of knowing you can take money out whenever you need to.

  Interest rate Balance Tax-free^ each year AER†
Variable - without bonus £1 - £250,000 0.90% 0.90%
Variable - with bonus £1 - £250,000 1.30% 1.30%
  • Open this ISA online
  • Pay in from £1 to £20,000 in the current tax year
  • Transfer in existing ISAs
  • Interest is paid each year on 6th April
  • Take money out whenever you need to
  • Enjoy the benefit of this being a flexible ISA
  • You can close or transfer this ISA at any time
  • We can stop accepting applications at any time.
Summary Box
  Summary Box
What is the interest rate? Interest rate without bonus 0.90% Tax-free^/AER† (Variable) each year

Interest rate with bonus (bonus rate of 0.40% included for the first 12 months) 1.30% Tax-free^/AER† (Variable) each year     

(See the meanings of ‘Tax-free’ and ‘AER’ at the bottom of the page)

Interest is calculated each day on the money in the account and paid on the 6th April every year

The interest you receive will be the rate with bonus for the first 12 months. After 12 months the rate will change to the rate without bonus. We will notify you to remind you before this happens.
Can Principality change the interest rate?
  • Yes, variable interest rates can go up or down.
  • If you have £100 or more in the account, we will give notice of any reduction in interest rates at least 14 days before the change takes effect.
  • When the rate changes to the rate without bonus, we will send you a reminder 14 days before this happens, no matter how much money you have in the account.
  • For more information, see the section Changes to interest rates in our Savings Terms and Conditions.
What would the estimated balance be after 12 months and 24 months based on a £1,000 deposit? Estimated balance after 12 months (interest rate of 1.30% AER, includes bonus rate of 0.40% tax-free for 12 months)

Estimated balance after 24 months (only the underlying interest rate of 0.90% AER is paid for months 13 to 24)

This projection is based on no further money being put in or taken out of the account and no change to the interest rate.
How do I open and manage my account?
  • You must be 16 or over and a UK resident (see your Online ISA account terms).
  • You must open your ISA online.
  • You have to link your Online ISA to a current account in your name with another UK bank or building society in order to move money when you need it.
  • You must keep at least £1 (the minimum balance) in the account.
  • If your ISA reaches £20,000 during the 2022/2023 tax year you cannot pay any more money in. You cannot pay in more than the ISA Allowance each year.
  • If your ISA reaches £250,000, you cannot pay any more money in.
  • You can transfer unlimited amounts from ISAs from previous tax years, as these are not part of your current year’s ISA allowance.
  • If we do not receive the first payment within five business days of the account opening, we will close it.
  • You can't have more than one Online ISA in your name.
    Can I withdraw money?
    • Yes, you can make a withdrawal or close your ISA at any time using your linked account.
    • You can transfer your ISA at any time.
    • This is a flexible ISA. This means you’ll be able to take money out of it and replace that money before the end of the same tax year, without the replacement contributing to your annual ISA allowance.
    Additional Information
    • Service charges and costs may apply to the account. These are set out in our Tariff of Charges.
    • In certain circumstances we may refuse an instruction for using an account. These circumstances are set out in our Savings Terms and Conditions.
    • The tax treatment of your savings depends on your individual circumstances and may change in the future. This is set by HM Revenue and Customs (HMRC).
    • The interest rates quoted above were correct on 23/06/2022.

    Before you apply below, please read the Online ISA Account Terms and Conditions

    If you are only transferring previous years’ ISA subscriptions, please enter your initial deposit as £1 on the application form. We will advise you how to make your transfer at the end of the application process.

    You can only invest in one Cash ISA per tax year.

    As you will be bound by the account terms of the ISA and your information is held in accordance with our privacy policy, you should read, print and save the below documents for your records. If you have any queries relating to them please contact us for further information.

    Please also read the following:

    Please Note: If you are an existing e-ISA or Web ISA Issue 1-7 customer and want to open an Online ISA account and transfer your existing balance to it, then please send us a secure message via Your Account using the 'New message' option to send a ‘Savings general enquiry’ message and we will transfer your existing balance without the need to open a new account

    ^Tax-free means UK Income Tax and Capital Gains Tax is not deducted from the interest you earn. This depends on your individual circumstances, and may change in future.

    †AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest were paid once each year on the whole balance, including previous interest payments. 

    Putting money into your savings account Once you've opened your savings account, for most accounts you should pay money in within 5 business days. Click here for information on how you can do that.

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