I have cash in my ISA. Does it earn interest?

Q. I have cash in my ISA. Can this cash earn interest at the moment?

A: In a word, yes. Any cash you hold as ‘cash available to invest’ in your Stocks and Shares ISA does earn interest.

Cash held in your account is available to invest immediately. It makes use of your tax-efficient ISA allowance. The current ISA cash rate is 2.45% gross (2.48% AER), effective 1 September 2025 (with no service fees attached). Rates are variable and reviewed monthly.

How the interest works

We calculate interest daily and pay it monthly (on or around the 21st). In ISAs, interest is paid gross. There’s no service fee for holding cash with us, and interest isn’t paid on any cash that’s still unsettled after a recent sale until it settles.

• Open an ISA

Other cash and cash-like options at Fidelity

There are two other ways to hold cash with us:

1. Cash and money market funds

Some customers choose to hold cash (money market) funds inside their ISA. Reasons why they opt for cash and money market funds include:

• Funds are diversified - cash funds invest in a wide range of cash-like investments such as high-quality bonds and short term loans, which spreads the risk. 
• Adaptable - cash funds can increase their income - or yields - quickly when interest rates rise. They may also fall more slowly when rates are cut. Although, eventually, yields tend to broadly reflect market conditions. It's worth shopping around, as yields will vary in line with a fund's objectives and investment policy.
• Easy to access - if you urgently need your money, it typically takes up to seven working days to access it, depending on the fund you've invested in.
• Tax-free returns - if you hold a cash fund in your ISA and Self-Invested Personal Pension (SIPP), any returns are tax free.

Read more about Cash and money market funds

2. Cash Management Account

We give you a Cash Management Account (CMA) if you hold an ISA, SIPP or Investment Account with us (although CMAs aren’t available for joint Investment Accounts). You can use your CMA to pay for fees, transfer money between accounts, or just to hold cash in. We do not charge a service fee on money held in your Cash Management Account. Money held in the Cash Management Account is not invested on the stock market so will not go down as a result of market movements.

You can learn more about how to make your cash work harder here.

• Read: Can I move cash from my pension to my cash management account?
• Read: Should I reduce the amount of funds I hold in my ISA?
• Read: How to build a portfolio - with examples

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Tax treatment depends on individual circumstances and all tax rules may change in the future. Withdrawals from a pension product will not be possible until you reach age 55 (57 from 2028). This information is not a personal recommendation for any particular investment. Before making your decision to transfer, please read our pension transfer factsheet. This explains the things you need to consider before you transfer, including fully comparing the benefits, charges and features offered. Pensions with guaranteed benefits and advised pension transfers are not eligible for this offer. Pension rules apply. The cashback T&Cs and exit fees T&Cs are available at fidelity.co.uk/cashback. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.