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Cash ISA - Interest Rate
Updated over a week ago

The main interest rate for Cash ISA is currently 4.04%* VAR (Variable Annual Rate). The interest rate is variable which means that it can fluctuate over time according to the market conditions. In the event of a change in the interest rate, you will be promptly notified to ensure transparency and awareness of the performance of your account.

The main rate of 4.04%* VAR is paid into your Cash ISA account on the first business day of each month and we can't change the date or the destination of the payment.

*The base gross rate used for interest calculations is 3.96%, not 4.04%. The 4.04% figure represents the Annual Equivalent Rate (AER), which reflects what the interest rate would be if interest was compounded annually. For monthly calculations, the gross rate of 3.96% is applied.


Interest Rate Bonus

Plum offers a bonus interest rate of 0.88% VAR for the money you deposit directly in the app, resulting in a total of 4.92% VAR. This bonus rate is applicable for one year from the opening of your Cash ISA. Afterward, the interest rate reverts to the main rate, as can be seen above, currently at 4.04% VAR. Please keep in mind the following requirements:

  • You must have at least £100 deposited in your Cash ISA. If your balance is less than £100, you will receive a reduced interest rate until you top up your Cash ISA with additional funds.

The bonus rate of 0.88% is not applicable for transfers from other providers. It's applicable only for the money you deposit via our app.

The bonus rate of 0.88% will be paid into your Cash ISA 12 months after the opening of your Cash ISA account.


Reduced Interest Rate (Penalty)

While we aim to keep Cash ISAs unrestricted, we've determined to offer this high interest rate only on balances of £100 and above. If your balance falls below £100 due to depositing less money or withdrawing funds, the interest rate will decrease to 3.00% VAR. However, once you top up your Cash ISA with additional funds, your interest rate should go back to 4.92%.

Please note that if your deposit to the Cash ISA is still pending or just settled, the interest rate will be updated within one business day after the settlement of the deposit.

Furthermore, you are allowed to make up to 3 withdrawals every tax year. If you make more than 3 withdrawals, the bonus rate will decrease to 3.00% VAR for the current tax year. For more information about it, you can also check the withdrawal limitations page.

Additionally, please keep in mind that in case of a partial transfer out of your Cash ISA to another provider, the interest rate for the remaining amount in Plum will be set to 3.00% VAR.

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