Instant Access Cash ISA | Royal Bank of Scotland

Instant Access ISA

Deposit £20,000 by 5 May and get a bonus interest rate for 1 year!

Bonus interest rate paid on the first £20k from 18 May 2017 to 17 May 2018.

Please read the Summary Box below before applying.

 

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Instant Access ISA at a glance Tax-free savings
Bonus interest rate on new savings of £20,000

Deposit £20,000 by 5 May and get a bonus interest rate for 1 year!

Bonus interest rate paid on the first £20k from 18 May 2017 to 17 May 2018.

Start saving from £1

The ISA allowance for this tax year 2017/2018 is £20,000. The tax year runs until 5 April 2018.

Bring your ISA balances together

You can bring your ISA balances together in one place, by completing a transfer in request.

Saving on the go

Manage your account online, over the phone, in branch or on the app.

Summary Box

Account Name: Instant Access ISA

1. What is the interest rate?

Interest rates without bonus:

Balance Tax-free p.a./AER (variable)
£1 -£24,999 0.05%
£25,000+ 0.50%

 

Interest rates with bonus:

  On the first £20,000
Standard variable interest rate
including conditional bonus
of 1.00% tax-free/0.89% AER
(fixed for 12 months)
On Remaining Balance
Standard variable
interest rate
excluding conditional bonus
Balance Tax-free p.a. (variable) AER (variable) Tax-free p.a./AER
(variable)
£1 - £24,999 1.05% 0.94% 0.05%
£25,000 + 1.50% 1.39% 0.50%

See section 6 below for details on why Tax-free p.a. and AER are different.

With the exception of the bonus offer, interest is paid on a tiered basis which means you’ll earn one rate on your entire account balance.

Interest is calculated daily and paid into your account annually on the first business day in April and at account closure with the exception of the bonus offer interest. Read on for details:

If between 6 April 2017 and 5 May 2017 you:

  • deposit your full £20,000 2017/2018 ISA allowance; or
  • transfer in at least £20,000 from an existing ISA you hold; or
  • Grow your balance by at least £20,000 by a combination of the above

you'll receive a 1.00% (fixed) tax-free p.a. bonus interest rate for 12 months from 18 May 2017 to 17 May 2018 on the first £20,000 in your account.

For example, you complete an ISA transfer into your account for £24,000 on 10 April 2017. From 18 May 2017 to 17 May 2018 you’ll earn 1.05% on the first £20,000, and 0.05% on the remaining £4,000.

For more information see Bonus Offer Frequently Asked Questions.

Bonus interest is calculated daily and paid into your account on the first business day of the month. The first bonus interest payment will be on 1 June 2017.

2. Can the Royal Bank of Scotland change the interest rate?

Yes, these rates are variable (excluding the 1.00% bonus interest rate which applies for 12 months and is fixed).

Please see General Terms 11.1 and 11.2 of the Royal Bank of Scotland Personal & Private Savings Account Terms for more details on when we may change the interest rates and the notice that we’ll give you.

3. What would the estimated balance be after 12 months based on a range of deposits?

Without the bonus interest rate:

Initial deposit at account opening Balance after 12 months Interest earned
£1,000.00 £1,000.50 £0.50
£25,000.00 £25,125.00 £125.00

 

These are only examples and do not take into account your individual circumstances. The examples assume that: no further deposits or withdrawals are made, there is no change to interest rates and tiers and any interest earned stays in the account.

The With Bonus example assumes you open and fund your account on 6 April 2017 and the balance after 12 months is taken on 5 April 2018. From the time you make your deposit until 17 May 2017, the standard (Without Bonus) interest rate will apply to your account. This interest is included in the “Interest earned” column of the With Bonus Interest Rate table. As bonus interest is earned from 18 May 2017 to 17 May 2018, the balance at expiry of the bonus interest rate on 17 May 2018 is higher than the balance at 5 April 2018.

With the bonus interest rate:

Initial deposit at account opening Balance after 12 months Interest earned
£20,000.00 £20,186.99 £186.99
£50,000.00 £50,427.00 £427.00

 

Next 12 months after bonus expires:

Balance at expiry of bonus interest rate on 17 May 2018 Balance 12 months after expiry of bonus interest rate Interest earned
£20,211.16 £20,221.26 £10.10
£50,479.03 £50,731.32 £252.29

4. How do I open and manage my account?

Eligibility

To open an Instant Access ISA you must be aged 16 years or over and be resident in the UK for tax purposes.

You must:

  • not have subscribed to another cash ISA (including a Help to Buy: ISA with another provider) or have subscribed more than the overall subscription limit in total to a cash ISA, a stocks and shares ISA, an innovative finance ISA and a lifetime ISA in the same tax year
  • hold the account solely in your name

You can open and manage your account in branch, online, by telephone and by using our mobile app.

Balance and ISA allowance

There is no minimum deposit required to open the account, and there is no maximum balance limit.

However, there is a limit on the amount you can pay into your account each tax year (6 April to 5 April). This annual limit, also known as your “ISA allowance”, is set by the Government and may change from time to time. For tax year 2017/2018 it is £20,000. If you pay in more than the limit any excess money will be returned to you.

If you make a payment for a tax year into your Instant Access ISA, you can’t make any payments for that tax year into any other cash ISA.

You can transfer all or part of any ISA held with another provider to us. Click here to find out more.

5. Can I withdraw money?

Yes. No notice is required.

You can withdraw money: in branch or by transfer to any other account based in the UK (online, by telephone or on the mobile app). If you make a withdrawal, you will not be able to deposit more money into your account if it means you will exceed the annual limit.

If you qualify for the bonus and make a withdrawal, and your balance falls below £20,000 between 18 May 2017 and 17 May 2018, you’ll continue to earn the interest rate with bonus on what is left in your account. If you make a withdrawal and your balance does not fall below £20,000 you’ll continue to earn the interest rate with bonus on the first £20,000, and the interest rate without bonus on the remaining balance.

You can transfer your ISA (or part of it) to another ISA manager.

6. Additional Information

Tax:

The interest payable is tax-free. The tax treatment may be subject to change in the future and depends on your individual circumstances.

 

Definitions:

AER - (Annual Equivalent Rate)
This is a notional rate used for interest bearing accounts, which illustrates the interest rate if paid and compounded each year. It helps you to compare the effective rates of credit interest on different accounts.

AERs are calculated over a 365 day period. The AER is lower than the tax-free p.a. (variable) in the bonus rates table because the AER including the bonus interest rate is based on earning the rate excluding the bonus for 42 days (the maximum period from account opening before the bonus will be paid) and then earning the rate including 1.00% bonus for 323 days.
p.a. Per annum (per year)
Tax-free Interest which is exempt from UK income tax

 

Bonus Offer FAQ. (Click to expand)

If I qualify for the bonus interest rates...

What is the last day to open an account and/or complete an ISA transfer to qualify?

  • In branch: 5 May 2017
  • Mobile, online, telephony: open account by 4 May 2017 so can fund by 5 May 2017
  • Transferring an ISA: request transfer by 5 May 2017. Even if funds arrive after the 5th of May, you will still qualify for the bonus.

 

What interest rate will I earn on anything more than £20,000?

You’ll earn the interest rate without bonus which applies to the tier your savings fall into. Please see the bonus rates table.

 

Once I’m earning the bonus interest rate, what will happen if my balance falls below £20,000 between 18 May 2017 and 17 May 2018?

You’ll continue to earn the bonus interest rate on what is left in your account. For example you have £30,000 and you withdraw £20,000, you’ll earn 1.05% (variable – includes 1.00% fixed tax free p.a. bonus interest rate) on the remaining £10,000 until 17 May 2018 when the bonus interest rate ends.

 

What happens if I close/transfer my ISA during the 12 months?

If you close your Instant Access ISA between 18 May 2017 and 17 May 2018, no bonus interest will be calculated or paid for the month you close your account. Standard variable interest will continue to accrue on a daily basis, right up until the day your Instant Access ISA is closed.

 

What happens when the 12 months ends?

On 18 May 2018 you’ll receive your final bonus interest rate payment. You’ll be able to see and access this interest in your account on the following day. On 18 May 2018 the interest payable on your savings will revert to the interest rate without the bonus. Please see interest rate table. We’ll give you 14 days’ notice in advance of this change.

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