Direct ISA

Essentials at a glance

What's the interest rate?

3.50% tax-free/AER, variable

Can you take money out?

Yes: no notice and no penalty

Will you pay tax?

No: this account is tax-free

What's the min. to pay in?

£1

What's the max. to pay in?

£20,000 in the 2025/26 tax year

Great for you if …

• You want to make the most of tax-free saving
• You want to use your ISA online or by phone
• You are aged 18 or over

Not for you if …

• You want to invest your full allowance in a stocks and shares ISA or an innovative finance ISA
• You want to manage your account by post
• You want to transfer in ISA investments from another provider
• You want a flexible ISA

Direct ISA FAQs

• What is an NS&I Direct ISA?

  Our Direct ISA is a cash ISA for customers aged 18 or over who are resident in the UK for tax purposes.

  Our Direct ISA is not a flexible ISA. This means that all your deposits within the tax year will count towards your allowance, even if you take money out.

  The ISA rules changed on 6 April 2024. You can now open and pay into more than one ISA of the same type in a tax year, and the minimum age for opening a cash ISA has increased from 16 to 18.
  Read about the four key changes to ISAs

  
  

  Cash ISAs are a type of savings account that earns tax-free interest.

  A stocks and shares ISA allows you to invest in shares, funds or investment bonds. Rather than earning interest, you’ll get tax-free earnings on the money you make from your investment. The value can fall as well as rise and you may not get back what you invest.

  We don’t offer stocks and shares ISA accounts.

  An Innovative Finance ISA (IFISA) uses peer-to-peer loans, unlike cash or stocks and shares ISAs. Peer-to-peer lending matches up investors with borrowers, who could be individuals or businesses.

  We don’t offer Innovative Finance ISA accounts.

• Can I apply for someone else?

  Yes. You can apply on behalf of someone else under a Power of Attorney or Court of Protection Order.

  If you've already registered your authority with us and registered for our online service, you can apply for an account online. Just click the ‘Apply now’ button to get started.

  If you haven’t, you'll need to:

  • Register your authority with us first (see our guide below to find out how)
  • Register for the online service
  • Then you can log in and apply for an account online

  Or you can apply by post using the application form below and register your authority at the same time by enclosing the original Power of Attorney or confirmation of your appointment as a Deputy, or a certified copy (see our guide below).

  Our guide to acting on behalf of someone else

  Direct ISA Power of Attorney application form

• What is an inherited allowance ISA?

  You can now inherit an additional ISA allowance if your spouse or civil partner dies, up to the value of their ISA at the date of death. If your spouse or civil partner died on or after 3 December 2014, you are entitled to this new allowance. If you are eligible and want to use your inherited allowance with NS&I, find out more by downloading the literature below.

  Direct ISA inherited allowance account - your questions answered

  Direct ISA inherited allowance account - summary box

  Direct ISA inherited allowance account - key features

  Direct ISA inherited allowance account application form

  Direct ISA inherited allowance account application form for an attorney, receiver or deputy

  Direct ISA inherited allowance account Additional Permitted Subscription (APS) transfer authority form

• How do I take money out?

  You can take out money online or by phone with no notice or penalty. You just need to keep a balance of at least £1 to keep your account open.

  You can:

  Log in

  Call us

  Find out how long it takes to receive your payment

• Can I move money from another NS&I account to a Direct ISA?

  Yes, if you have an NS&I Direct Saver, you can apply online for a Direct ISA and pay for it from your Direct Saver.

  If you want to use another NS&I account, just fill out a quick online form and we’ll get it sorted for you. Be sure to have the details of the account you want to switch from to hand.

  Switch to a Direct ISA
  

  Only use if switching from another NS&I account or Investment

  Prefer the post?

  It will take a bit longer, but you can still download and send us a paper form in the post.

  Form to switch by post

• Can I transfer my NS&I ISA balance to another provider?

  Yes, you can. You’ll need to contact your new provider and they’ll arrange the transfer for you – there’s no need to contact us.

  You can transfer part of your Direct ISA from one provider to another, regardless of when the money was paid in.

  Make sure all the details on your new provider’s transfer form are up-to-date and match those used for your Direct ISA account, including your name, address, date of birth and National Insurance Number.

• Can NS&I change the interest rate?

  Yes – the rate is variable so we can change it up or down from time to time, for example when the Bank of England base rate changes or when rates in the general savings market change. See the customer agreement (terms and conditions) for more details. When the rate changes, we’ll update our website and literature as soon as we can. If the rate goes down we’ll also contact you personally in advance to let you know.