e-ISA
Internet-based, tax-efficient savings
Why pay tax on your savings interest? e-ISA gives you up to 2.50% AER (variable), and the taxman doesn't get a penny.
Why choose an e-ISA?
Tiered interest rates – the more you invest, the more interest you earn
Save up to £3,600 or £5,100 in a tax year – this is the limit for tax year 2009/2010. From 6 October 2009, customers who are aged 50 or over by 5 April 2010 will qualify for the higher £5,100 annual limit. The tax year runs from April 6 until April 5 the following year.
No penalties – we won't charge you for withdrawing your money. However, if you decide to make a further deposit, remember that you can only deposit a maximum of £3,600 or £5,100 (if you are aged 50 or over by 5 April 2010) over the entire tax year.
Monthly tax-free interest – paid directly into your account
Get the savings habit – we can set up a regular transfer from your other NatWest account
Easy steps to get or transfer your e-ISA
- Apply online for the e-ISA
If you don't already bank with us you will also need to have an instant access savings or current account with us. We need this to receive any deposits which may accidentally exceed your annual ISA allowance. You can apply for this at the same time as the e-ISA. - Complete paperwork
If you already bank online with us, your e-ISA should be opened immediately.
If you are new to NatWest, we will send your paperwork in the next few days. We’ll also ask you to send identification documents. Once we’ve received these documents, we’ll check them and return them to you. And that’s it. Your e-ISA is ready to use. - Transfer other ISAs
If you want to transfer another cash ISA to us, once your e-ISA is open, complete the ISA Transfer form, print it, and send it to: Central Tax Unit, 9th Floor, 1 Hardman Boulevard, Manchester, M3 3AQ and we’ll arrange for the transfer to be completed.
Not paid money into your account for a year?
Download our re-activation form
UK regulations say that we have to lock your account if you don’t make any deposits for a year. This form lets you pay money into our Cash ISA again – the more you save, the higher the interest you’ll earn. Simply take your completed form into your local branch or post it to: Central Tax Unit, 9th Floor, 1 Hardman Boulevard, Manchester M3 3AQ.
This page provides the current interest rates that apply to this account. We have a separate page for previous savings interest rates.
Full copies of the fees and rates, and terms and conditions that apply to our personal accounts can be downloaded for our terms and conditions page.
Interest rates
Interest rates for customers who open an e-ISA account on or after 15 May 2009
| Balance | AER (variable) | Gross Rate | Net Rate |
|---|---|---|---|
| £30,000+ | 2.50% | 2.47% | N/A |
| £10,000 - £29,999 | 2.25% | 2.23% | N/A |
| £0 - £9,999 | 2.00% | 1.98% | N/A |
Interest paid monthly.
Note: Internet based account only
Last updated on: 4 Sep 2009.
Interest rates for customers who opened an e-ISA account on or before 14 May 2009
| Balance | AER (variable) | Gross Rate | Net Rate |
|---|---|---|---|
| £30,000+ | 3.51% | 3.45% | N/A |
| £10,000 - £29,999 | 3.26% | 3.21% | N/A |
| £0 - £9,999 | 3.00% | 2.96% | N/A |
Note: Internet based account only
Last updated on: 4 Sep 2009.
Common definitions
Annual Equivalent Rate (AER). This is a notional rate used for interest bearing accounts which illustrates what the gross credit interest rate would be if paid and compounded on an annual basis. It helps you to compare the effective rates of credit interest on different accounts.
Gross Rate. This means the interest rate you are paid before the deduction of income tax.
Net Rate. This means the interest rate you are paid after the deduction of income tax.
Important information
You can download terms and conditions for NatWest current accounts and savings accounts and information on fees and charges as PDFs.
We sometimes allow savings accounts to be operated in a way which enables the customer to give instructions for a withdrawal or other payment which cannot be met from the funds in the account. If this happens, we may apply charges to the account. Please read our leaflet Personal and Private Banking - A Guide to Fees and Interest which contains details of these charges.
NatWest Personal and Private Banking - Terms and Conditions (PDF File 330KB)
NatWest Personal and Private Banking - A Guide to Fees and Interest (PDF File 225KB)
You may need Adobe Reader to view some of these documents. Get Adobe Reader. Visit access.adobe.com.
Using your e-ISA
- Do I need another account with NatWest?
- Are there any penalties?
- Can I transfer money in from more than one bank or building society?
- Do I need to enclose a cheque for my initial deposit and who should I make it payable to?
- I have received my ISA application form, what do I put in the 'credit interest' section?
- What should I enter in the initial deposit section if I have already fully subscribed my tax-free allowance for the year?
Transfer your existing cash ISAs to your NatWest e-ISA
- How do I transfer a Cash ISA with another provider to my NatWest e-ISA?
- How long does it take to transfer funds to my e-ISA?
- I have a TESSA ISA – can I transfer this to you?
- I only want to transfer part of my Cash ISA balance to my NatWest e-ISA – can I do this?
Using your e-ISA
Q. Do I need another account with NatWest?
A. Yes. You need to have a current account or instant access savings with us. We need this to receive any deposits which may accidentally exceed your annual ISA allowance.
Q. Are there any penalties?
A. No. You can withdraw your money or close your account at any time. We’ll simply pay interest on the daily cleared balance.
Q. Can I transfer money in from more than one bank or building society?
A. Yes. Simply fill out a Cash ISA Transfer Form (PDF, 886k) for each one you want to transfer.
Q. Do I need to enclose a cheque for my initial deposit and who should I make it payable to?
A. If you wish to make an initial deposit, please enclose a cheque with the application form and make it payable to yourself. If you are transferring in funds and do not wish to make an initial deposit you do not need to send a cheque.
Q.I have received my ISA application form, what do I put in the 'credit interest' section?
A. If this section is left blank, interest will automatically be transferred to your ISA. If you would like to credit another account, please specify the details in the box provided.
Q. What should I enter in the initial deposit section if I have already fully subscribed my tax-free allowance for the year?
A. Please key in £1 initial deposit, select payment method cheque/cash and click that you do not wish to make regular savings. This will allow you to move forward through the screens. By enclosing the transfer form with your application we will be aware that you do not wish to deposit £1 therefore you will not be oversubscribing to your ISA.
Transfer your existing cash ISAs to your NatWest e-ISA
Q. How do I transfer a Cash ISA with another provider to my NatWest e-ISA?
A. Once your e-ISA is open simply complete a Cash ISA Transfer Form (PDF, 886k) print it, and send it to: Central Tax Unit, 9th Floor, 1 Hardman Boulevard, Manchester, M3 3AQ and we’ll arrange for the transfer to be completed. If you are new to the bank you can send your Cash ISA Transfer form to us with your e-ISA application form. You will also need to open an instant access account.
Q. How long does it take to transfer funds to my e-ISA?
A. No more than 30 days. We follow the rules set down by HM Revenue and Customs.
Q. I have a TESSA ISA – can I transfer this to you?
A. Yes, since April 2008 these have been classed as Cash ISAs so you can transfer these to NatWest.
Q. I only want to transfer part of my cash ISA balance to my NatWest e-ISA – can I do this?
A. We will accept partial transfers however you will need to check with your existing ISA provider as their terms and conditions may not allow partial transfers.
