Atom bank, the UK’s most trusted savings bank on Trustpilot, today announces the launch of its new Easy Access Cash ISA, offering savers a competitive and tax-efficient way to make their money work harder.

The Easy Access Cash ISA offers a tax-free variable rate of 4.00% AER1 on new deposits. It’s easy to open via the Atom bank app, and is fully FSCS-protected up to £85,000. The product is the most requested amongst Atom’s customer base and follows the hugely successful launch of the Instant Saver Reward last October.

The launch comes amid surging demand for tax-efficient savings products, as more consumers look to shield their returns from tax and get ahead of any potential cut to the annual tax-free cash ISA limit from the Chancellor.

Tax-free saving has seen record growth, with HMRC data for the 23/24 tax year showing a sharp rise in ISA subscriptions2:

• 15 million ISA accounts were opened - the highest number in 13 years.
• £103 billion was subscribed to ISAs, marking a £31.4 billion increase year-on-year.
• Cash ISAs led the growth, rising 67% (£27.9 billion), and outpacing Stocks & Shares ISAs for the second consecutive year.

With the Personal Savings Allowance (PSA) frozen, a growing number of people are now paying tax on their savings interest. Atom’s Easy Access Cash ISA ensures customers keep every penny of the interest they earn, potentially leading to more money in their pocket, even compared to taxable savings accounts with a higher headline rate.

For example, on a £20,000 balance over 12 months3:

To match the 4.00% AER tax-free return in Atom’s Cash ISA, a standard account would need to offer:

• 5.00% AER for a basic-rate taxpayer.
• 6.67% AER for a higher-rate taxpayer.
• 7.27% AER for an additional-rate taxpayer.

In effect, Atom’s Easy Access Cash ISA rate of 4.00% AER could provide up to £260 more a year than the current best buy easy access savings account, once tax is considered3, allowing customers to maximise the value of their savings.

Chris Storey, Chief Commercial Officer at Atom bank said: "Our customers have been asking us to launch a Cash ISA for a while now, and we want to bring our focus on making things faster, easier and better value to this important market. 

“As the cost of living continues to be a concern and Christmas on the horizon, people are rightly focused on making their money work harder. With the Personal Savings Allowance being frozen, the tax drag on returns has never been more evident.

“Our new Easy Access Cash ISA reflects Atom’s customer-first approach, by offering a competitive and easy-to-use product that empowers people to keep more of their hard-earned interest. With the Budget on the horizon and speculation around potential changes to the annual tax-free allowance, now is a critical time for savers to get ahead and maximise their tax-efficient savings.”