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UK-based Atom bank has launched a new Easy Access Cash Individual Savings Account (ISA), offering savers a variable tax-free interest rate of 4% AER on new deposits.
The product responds to growing customer demand for savings options that help reduce tax exposure, especially as discussions continue in the UK about a possible reduction to the annual tax-free Cash ISA allowance.
Recent figures from HMRC show a strong shift toward tax-efficient saving during the 2023/24 tax year. Around 15 million ISAs were opened, with total subscriptions reaching £103 billion. Cash ISA uptake rose significantly, increasing by 67%.
Commenting on the launch, Atom bank’s Chief Commercial Officer, Chris Storey, said that many households are prioritising smarter saving as living costs remain high.
“With the Personal Savings Allowance frozen, more savers are finding their returns affected by tax. As people look to stretch their income, especially with the holiday season approaching, accounts like this can help them keep more of what they earn,” Storey explained.
He added that ahead of the upcoming UK Budget, and with potential changes to tax-free allowances being discussed, now is an important time for savers to maximise their tax-efficient options.
Earlier in 2025, Atom bank also rolled out an AI-powered decisioning platform supported by Provenir to enhance its customer service and lending processes.
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