iFast, a digital banking platform, has introduced a new Cash ISA product that offers up to £500 cashback for new customers. The deal is designed to attract savers looking for competitive returns and flexibility.
Key Features of the iFast Cash ISA
The iFast Cash ISA pays a variable interest rate of 1.5% AER on balances up to £100,000. New customers who transfer an existing Cash ISA or open a new one with at least £10,000 will receive a £500 cashback bonus. The cashback is paid within 30 days of the account being opened and funded.
The ISA allows unlimited withdrawals without penalty, making it a flexible option for savers who may need access to their funds. There is no fixed term, and interest is calculated daily and paid monthly.
Eligibility and Terms
The offer is available to UK residents aged 18 and over. Customers must use the promo code 'CASH500' when applying. The cashback is subject to the account remaining open for at least 90 days; otherwise, iFast may claw back the bonus.
According to iFast, the deal is part of a limited-time promotion. The bank states: "We are pleased to offer this cashback to help savers make the most of their ISA allowance." The offer is available until 31 March 2024 or while stocks last.
Comparison with Other ISAs
While the 1.5% rate is not the highest on the market, the £500 cashback significantly boosts the overall return for larger deposits. For example, a safer depositing £50,000 would earn £750 in interest over a year plus the £500 cashback, equivalent to an effective rate of 2.5%.
However, savers should compare rates and terms. Some competitors offer fixed-rate ISAs with higher interest but less flexibility. iFast's variable rate could change, and the cashback is a one-time bonus.
How to Apply
Applications can be made online through iFast's website. Customers need to provide identification and may be subject to credit checks. The minimum deposit is £10,000 to qualify for the cashback, but the account can be opened with as little as £1.
iFast is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority, meaning deposits are protected by the Financial Services Compensation Scheme up to £85,000.
