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Variable Rate Cash ISA

Variable Rate Cash ISA

Make your money grow with a new ISA savings account from Sainsbury’s Bank. Save for a rainy day with our Variable Rate Cash ISA and access your money when you need it.

1.30 - 3.50% AER/tax free** p.a. (variable)

What is a Variable Rate Cash ISA? 

A Variable Rate Cash ISA is a type of cash ISA savings account where you can save up to £20,000 in the tax year, as outlined by the government. You can earn a rate of 1.30% - 3.50% AER (tax-free) per year – depending on the balance of your account.

You’ll pay no tax on interest.

Open with just £1 or transfer money from another ISA (as long as it isn’t a Lifetime ISA) into a Sainsbury’s Bank Variable Rate ISA.

Before you go ahead and apply, find out more about how our Variable Rate Cash ISA works below.

Financial Services Compensation Scheme

All of our savings products are covered by the Financial Services Compensation Scheme (FSCS). For further information about the compensation provided by the FSCS visit opens in new window

Protecting your money - A guide from the FSCS [PDF, 557Kb] opens in new window


Important Information

The tax treatment or rate of interest payable depends on the individual circumstances of each customer and may be subject to change in the future.

Savings accounts are available from Sainsbury’s Bank to UK residents aged 18 years old or over. Sainsbury’s Bank reserves the right to alter rates at any time.

AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if paid and compounded once each year.

**Tax Free: interest on your Cash ISA will be paid tax free. This means that your Cash ISA interest will not count toward your personal savings allowance. The favourable treatment of ISAs may change in the future and is dependent on your personal circumstances.

Frequently asked questions

How does a Variable Rate Cash ISA work?

A Variable Rate Cash ISA is a savings account with a variable interest rate. The amount of interest you can earn on your ISA savings can vary depending on the current Bank of England base rate.

You can deposit up to £20,000 in the tax year (as stipulated by the government) and you’ll earn tax-free interest on these savings. You’re able to split this maximum allowance across the four types of ISAs – Cash, Stocks and Shares, Lifetime, or Innovative Finance.

Is a Variable Rate Cash ISA right for me?

It depends on personal needs and circumstances. However, before applying for a Variable Rate Cash ISA, consider whether an ISA best suits your needs. If you want to take advantage of a tax-free savings account, with access to withdraw your money at any time, a variable ISA saver could be a good option.

Having no withdrawal restrictions means that you can get to your money when you need it, while still benefiting from the competitive interest rate of 1.30% to 3.50% AER.

Can I withdraw money from my Variable Rate Cash ISA?

Yes, there are no withdrawal restrictions on our Variable Rate Cash ISA. You can transfer money from this variable rate ISA to a current account with a bank or building society in your name. 

You can withdraw money from your ISA savings with ease using our telephone banking or online service. If you do withdraw money from your ISA, you can still only deposit up to your annual ISA allowance limit.

Does a Variable Rate Cash ISA have a higher interest rate?

Our Variable Rate Cash ISA interest rates are between 1.30% and 3.50% AER. These rates are variable and reflect the Bank of England’s base rate, as well as your balance.

Different ISA savings accounts offer their own benefits and limits on amounts that can be paid in or withdrawn, notice periods, and initial contributions.