Premium Bonds
1.00% annual prize fund rate
Invest from £25 to £50,000
Junior ISA
1.50%
Invest from £1 to £9,000 tax year 2020/21
Direct Saver
0.15%
Invest from £1 to £2 million
Direct ISA
Save up to £20,000 without paying a penny in tax on the interest.
Essentials at a glance
- What's the interest rate?
- 0.10% tax-free/AER
- Can you take money out?
- Yes: no notice and no penalty
- Will you pay tax?
- No: this account is totally tax-free
- What's the min. to pay in?
- £1
- What's the max. to pay in?
- £20,000 in the 2020/21 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 haven't invested in a cash ISA in the 2020/21 tax year
Maybe 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
-
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).
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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 leaflets below.
Direct ISA inherited allowance account - your questions answered
Direct ISA inherited allowance account - summary box
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-
Yes! 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 ISAOnly 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.
-
Yes, you can. There’s no need to contact us, as the provider you’re transferring to will request your money from us directly.
Apply for Direct ISA
Please read the below Summary Box below before applying for this account.
Summary Box
- Account name
-
Direct ISA
- What's the interest rate?
-
0.10% tax-free/AER
We calculate the interest daily and add it to your account once a year on 6 April.
- 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.
We’ll give advance notice of any rate changes by publishing adverts in a range of newspapers and by updating our website. When the rate is going down, we’ll also contact you personally in advance to let you know.
What would the estimated balance be after 12 months based on a £1,000 deposit?
-
A £1,000 deposit would be worth £1,001 after 12 months, if the interest rate stayed at 0.10% tax-free/AER (the rate from 24 November 2020) during the 12 months.
This is an illustration only, so it doesn’t take into account your individual circumstances. It assumes that you don’t make any withdrawals or additional deposits during the year.
- How do I open and manage my account?
-
Our Direct ISA is a cash ISA for customers aged 16 or over who are resident in the UK for tax purposes. You can open an account in your own name only
You can:
- Apply for, and manage, a Direct ISA online or by phone only
- Open an account with at least £1, paid by a debit card in your own name, issued by a UK bank
- Pay in up to £20,000 in the 2019/20 tax year
If you want to switch to a Direct ISA from another NS&I account or investment:
- Can I withdraw money?
-
Yes, 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.
Our Direct ISA is not a flexible ISA. This means that all your deposits within the tax year will count towards your allowance, whether or not you make any withdrawals.
- Additional information
-
The interest you earn is tax-free, so it won’t count towards your Personal Savings Allowance.
Find out more about tax and savings
Bear in mind that the tax advantages you receive from ISAs depend on your individual circumstances and may change in the future.
We’ll send you an electronic statement in April each year, showing all your transactions and interest. Or you can receive your statements by post if you prefer.
We don’t currently accept transfers from other providers into our Direct ISA.
- Definitions
-
Tax-free means the interest is exempt from UK Income Tax.
AER (Annual Equivalent Rate) illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and the AER are the same.
Please make sure you’ve read our summary Box above and the customer agreement before applying.
Customer agreement (last updated on 6 April 2019)
Apply nowSwitch to a Direct ISA
Please read the below Summary Box below before switching to this account.
Summary Box
- Account name
-
Direct ISA
- What's the interest rate?
-
0.90% tax-free/AER (until 23 November)
0.10% tax-free/AER (from 24 November)We calculate the interest daily and add it to your account once a year on 6 April.
- 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.
We’ll give advance notice of any rate changes by publishing adverts in a range of newspapers and by updating our website. When the rate is going down, we’ll also contact you personally in advance to let you know.
What would the estimated balance be after 12 months based on a £1,000 deposit?
-
A £1,000 deposit would be worth £1,009 after 12 months, if the interest rate stayed at 0.90% tax-free/AER (the rate until 23 November 2020) during the 12 months.
A £1,000 deposit would be worth £1,001 after 12 months, if the interest rate stayed at 0.10% tax-free/AER (the rate from 24 November 2020) during the 12 months.
These are illustrations only, so they don't take into account your individual circumstances. They assume that you don’t make any withdrawals or additional deposits during the year.
- How do I open and manage my account?
-
Our Direct ISA is a cash ISA for customers aged 16 or over who are resident in the UK for tax purposes. You can open an account in your own name only
You can:
- Apply for, and manage, a Direct ISA online or by phone only
- Open an account with at least £1, paid by a debit card in your own name, issued by a UK bank
- Pay in up to £20,000 in the 2019/20 tax year
- Can I withdraw money?
-
Yes, 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.
Our Direct ISA is not a flexible ISA. This means that all your deposits within the tax year will count towards your allowance, whether or not you make any withdrawals.
- Additional information
-
The interest you earn is tax-free, so it won’t count towards your Personal Savings Allowance.
Find out more about tax and savings
Bear in mind that the tax advantages you receive from ISAs depend on your individual circumstances and may change in the future.
We’ll send you an electronic statement in April each year, showing all your transactions and interest. Or you can receive your statements by post if you prefer.
We don’t currently accept transfers from other providers into our Direct ISA.
- Definitions
-
Tax-free means the interest is exempt from UK Income Tax.
AER (Annual Equivalent Rate) illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and the AER are the same.
Please make sure you’ve read our summary Box above and the customer agreement before applying.
Top up your Direct ISA
If you already have an account with us, you can top it up whenever you like.
- Top up by bank transfer
-
- Reference:
- Enter your Direct ISA account number (not your NS&I number) as the reference. You can find your account number on your statement or by logging in online.
- Payee name:
- NS&I
- Account number:
- 11994808
- Sort code:
- 08 31 20
When you pay by bank transfer, you're confirming your bank account is a UK account in your name.
Just give the following details to your bank:
Please make sure you've set up your account before transferring money via your bank.
When you set up your payment, you may receive a message saying 'This account can't be checked' or something similar. This doesn't mean the details you are using are wrong but please check them carefully.
For more information on topping up by bank transfer see our FAQs
- Top up by debit card
Top up your Direct ISA using your debit card
Top up your account
Please note: bank transfers and standing orders aren't available for Direct ISA inherited allowance accounts.
Ready to apply?
Be sure to check our FAQs first, then we'll show you the Direct ISA summary box and customer agreement before you apply.
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