FAQ

What is an ISA?

An ISA (Individual Savings Account) is a UK account that lets you save or invest tax‑free. Returns inside an ISA (interest, dividends and capital gains) aren’t taxed, and you don’t normally report them on your tax return. For the 2025/26 tax year, you can pay in up to £20,000 across all your ISAs (Cash, Stocks and Shares, Innovative Finance and Lifetime ISAs).

What is the difference between a Stocks and Shares ISA and a Cash ISA?

The difference between a Stocks and Shares ISA and a Cash ISA is the way in which your money grows and the risk you take. Our Cash ISA a Qualifying Money Market Fund (QMMF) which holds mainly short-term, low-risk financial assets, aiming to maintain a stable value; it is designed to keep your cash while earning a bit of interest. It is called “qualifying” because it meets certain regulations that allow them to be considered as cash equivalents. A Stocks and Shares ISA is an investing account for shares, ETFs, funds and bonds. You might consider a Cash ISAs for short‑term goals; consider Stocks and Shares ISAs for 3–5+ years. Both are tax‑free in the UK, with a £20,000 allowance for 2025/26.

How can I transfer my ISA to eToro?

To transfer an ISA to eToro (powered by Moneyfarm), open or log in to your eToro ISA and choose the ISA transfer option to complete the transfer form. Moneyfarm then manages the transfer directly with your current provider so your tax‑free status is preserved; don’t withdraw the money yourself. As a guide, UK rules say transfers should take up to 15 working days for Cash ISAs and up to 30 calendar days for Stocks and Shares ISAs and Managed ISAs. The time taken depends on the provider you are transferring from.

Can I withdraw money from my Cash ISA?

You can withdraw money from your ISA whenever you need to, without it impacting your ISA allowance from that tax year. The eToro ISA powered by Moneyfarm does not charge you to withdraw from your ISA, as we know how important it is that you have flexible access to your investments.

However, please be aware that you may forfeit any promotional offers when with withdrawing, so please check the terms and conditions of the relevent ISA offer before you withdraw.

Who can open a Cash ISA?

To open a Cash ISA, you must be 18 or over and a UK resident for tax purposes, with exceptions for Crown servants and their spouses/civil partners serving overseas.

Do you offer a Stocks & Shares ISA?

Yes. eToro offers a Stocks and Shares ISA in the UK, with both DIY and Managed options in partnership with Moneyfarm — open online and keep everything in one app. You can also transfer existing ISAs.

Can the rate on a Cash ISA change?

Yes, it is a variable rate Cash ISA, so the rate can go up or down with market conditions, which are heavily influenced by changes to the Bank of England base rate. For the Cash ISA, your rate is linked to the qualifying underlying money market fund (QMMF). If you have a promotional ISA offer rate, it may drop to a lower rate if your account balance falls below £500 or you make more than 3 withdrawals in a year.

Why is your cash held in a qualifying money market fund?

A Qualifying Money Market Fund (QMMF) holds mainly short-term, low-risk financial assets, aiming to maintain a stable value. They are designed to keep your cash while earning a bit of interest. They are called “qualifying” because they meet certain regulations that allow them to be considered as cash equivalents. These regulations require QMMFs to maintain a low-risk strategy by investing in financial instruments such as government bonds. They are subject to higher regulatory scrutiny and must meet higher quality standards than other money market funds. Qualifying Money Market Funds can be held within an ISA wrapper.

When does my money start earning interest?

With the eToro Cash ISA powered by Moneyfarm, interest starts accruing from the next working day after your funds have been received and cleared. You’ll see daily accrual of your standard variable rate reflected in your account.

How is my money protected under the FSCS?

Your Cash ISA is invested in qualifying money market funds and is protected under the Financial Services Compensation Scheme (FSCS) investment protection, not the deposit protection scheme. This means you may be entitled to compensation of up to £85,000 if MFM Investment Ltd were to fail and you suffer a financial loss as a result. FSCS protection does not cover losses from market performance.

Where is my money held?

As an investment firm authorised and regulated by the FCA, Moneyfarm is obligated to segregate client funds and assets. This means that your money and investments are held separately from Moneyfarm’s own bank account and cannot be mixed with their own funds.

Moneyfarm believes that the safest way of looking after your investments is to appoint a custodian bank which holds your money and the investments we purchase on your behalf, with a reference number unique to you. Moneyfarm holds your money and investments using carefully selected, regulated financial institutions such as Barclays and Saxo Capital Markets UK Ltd, and Moneyfarm ensures that these institutions meet the relevant criteria to keep your money safe.

Your funds are covered by the Financial Services Compensation Scheme (FSCS). In the event of the firm’s failure, Moneyfarm is covered by the FSCS in relation to investment products which means you would be eligible to claim up to £85,000 (across all brands operating under MFM Investment Ltd) if there was any shortfall in the assets held for you, or if you had another claim against Moneyfarm relating to your investments.

Is Moneyfarm regulated?

Yes, Moneyfarm is authorised and regulated to give investment advice and provide a discretionary service by the Financial Conduct Authority (FCA) no. 629539. Details of their authorisation can be found on the Financial Services Register here.

What is a flexible ISA?

A flexible ISA allows you to withdraw money and then replace it within the same tax year without affecting your annual ISA allowance. This means any funds you take out can be returned, preserving your full tax-free savings limit for that year.

Is interest earned daily, weekly or monthly?

Your standarad variable rate interest is calculated daily. After your initial deposit, interest starts accruing from the next working day after your funds have been received and cleared.

Will I be notified of interest rate changes?

We will update this page whenever the rate changes.

What is the annual ISA allowance?

This tax year you can invest up to £20,000 in your ISA. The tax year runs from 6 April until 5 April the following year and that’s when your ISA allowance automatically refreshes.

You can pay your whole allowance of £20,000 into a Stocks and Shares ISA, a Cash ISA, or a combination of the two. Even if you have an ISA elsewhere, you can still open a Stocks and Shares ISA with the eToro ISA powered by Moneyfarm, and you can also transfer over an old ISA to your new account. You can choose between making a lump sum investment, and/or making regular contributions throughout the tax year. Your eToro ISA powered by Moneyfarm is flexible to suit you. Your annual ISA allowance expires at the end of the tax year and any unused allowance will be lost. It’s a case of ‘use it or lose it’, as your allowance can’t be rolled into the next year. With the eToro ISA powered by Moneyfarm, you can invest more than the ISA allowance, for example, with a General Investment Account, but any investments outside the ISA wrapper won’t be sheltered from tax.

Can the rate on a Cash ISA change?

Yes, the Cash ISA has a variable rate, which means the rate can go up or down according to market conditions (largely driven by any changes in the Bank of England base rate).

Note that the rate for our Cash ISA can also drop to a lower rate if the balance for a customer’s new contributions falls below £500 or they make more than 3 withdrawals in a year.

How does the boosted interest rate offer work?

Should you be eligible for the boosted rate offer, your 12-month boosted rate calculation begins once funds are cleared (typically 1–2 working days after they have been received).

Your boosted rate interest earned will be paid into your Cash ISA balance in one lump sum upon completion of the 12 month term.

To maintain the boosted rate, keep at least £500 in your account and limit withdrawals to three over the 12 month term. Please read the promo terms and conditions here.