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Variable Rate Cash ISA – apply

Your online application should only take 10 minutes to complete but there are some important things to know before you start.

Please ensure you click on the product information summary dropdown below for important information about the product.

Product information summary

Account name

Variable Rate Cash ISA

What are the interest rates?

The Interest Rate (AER) is payable as follows:

Balance tier AER/tax free p.a.
£1 - £499 1.30%
£500+ 3.50%


The interest rate that is applied to your account will depend on your balance. The amount of interest you'll earn will apply to the whole balance in your account.

Interest is calculated daily and paid on the anniversary of account opening.

You can check the interest rate applicable to your account on any day by visiting and logging into your online banking.

If your interest rate increases because you paid in more money the rate will update overnight online. But interest will be applied at the rate applicable to your new balance, from the day we receive your payment.

Can Sainsbury’s Bank change the interest rate?

Rates are variable. This means we may increase or decrease interest rates at any time, for example, to reflect a change in the Bank of England bank rate, or if there are changes in the rates of interest which other firms providing similar products pay.  We'll contact you to tell you when your interest rate changes. For further information on how and when please refer to condition 7 of our General Terms and Conditions and condition 4.2 of our Variable Rate Cash ISA Terms and Conditions.

What would the estimated balance be after 12 months?

Based on a deposit of Projected balance
£250 £253.25
£1,000 £1,035.00
£10,000 £10,350.00

These examples are based on one lump sum deposit being made at account opening, with no further deposits or withdrawals made, and are provided as an illustration only and do not take into account individual customers' circumstances.

How do I open and manage my account?

  • You can open your Variable Rate Cash ISA by applying online.
  • You can manage your account via Online Banking or by contacting us.
  • You must be aged 18 or over and be a UK resident to open a Sainsbury's Bank savings account.
  • The minimum amount you can deposit in the account is £1.00.
  • The maximum amount that can be held in the account is £2,000,000.00.
  • You can only deposit an amount up to the ISA allowance in any one tax year.
  • You must invest a minimum of £1 within 30 days of account opening to ensure that your account remains open and that you benefit from the advertised rate of interest.
  • You do not have to deposit any further minimum amount at any time following the initial deposit.

Can I withdraw money?

You can transfer money from your Variable Rate Cash ISA account to another account held in your name with a bank or building society which is part of the UK clearing system. Withdrawals can be made by electronic transfer via the Sainsbury's Bank Online Banking Service or via Telephone Service by calling us.

When making a withdrawal, unless you transfer your funds to another ISA account, your money will lose its tax free status. Regardless of how many withdrawals you make from your Variable Rate Cash ISA, you'll only ever be able to deposit up to your annual Variable Rate Cash ISA allowance limit.

Additional information

Crown Employees (members of the armed forces or diplomats)

If you're a Crown Employee serving overseas (or you're their spouse or civil partner) and you wish to apply for an ISA, please contact us. If you're outside the UK, call +44 131 549 8040. If you're in the UK, call 08085 40 50 60.

Want to close an account? You can do that online or by calling us.

Interest on your Variable Rate Cash ISA will be paid tax-free. This means your Variable Rate Cash ISA interest will not count towards your personal savings allowance.

* AER stands for Annual Equivalent Rate and shows what the interest rate would be if interest were paid and compounded once each year. Tax-free means you won’t pay any income tax on the interest.  

What you'll need

Please have the following details to hand before you start your application:

  • Your addresses and postcodes for the last 3 years; and
  • Your National Insurance number and/or Tax Identification Number(s) (for Non UK tax resident).

For help locating your National Insurance number see our Variable Rate Cash ISA FAQ page.

Further assistance

We want to provide you with the right level of support throughout your application. If there is anything that could affect your ability to understand the application you are making today, please call us. We'll be able to discuss your needs and offer suitable support.

If required you can ask for your correspondence in another format eg. Braille / Audio. Just contact us after you’ve completed your application and we can do this for you.

Lines are open 8am-7pm Mon-Fri and 8am-5pm Sat-Sun. Telephone calls may be recorded for security purposes and monitored under our quality control procedures. Calls are free from a landline and from a mobile when calling from the UK.

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