eToro Cash ISA Review 2026: Up to 4.87% AER First Year Rate
eToro offers a Cash ISA delivered through a partnership with Moneyfarm. Eligible new Moneyfarm customers can earn up to 4.87% AER variable over the first 12 months. That headline is made up of a standard introductory rate of 3.87% AER variable plus a 1 percentage point boost paid after the first anniversary, after which the rate moves to 3.57% AER variable. For a full comparison against other UK Cash ISA providers, see our Best Cash ISAs UK guide.
The Cash ISA invests in a qualifying money market fund rather than holding your money as a bank deposit, so the protection that applies is different from a savings account. This review covers how the offer is structured, the conditions attached to the boost, the FSCS position, the practical terms to be aware of, and who it suits.
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How the 4.87% AER Offer Works
The 4.87% AER variable headline is a conditional first year rate for eligible new Moneyfarm customers. It has two parts: a standard introductory rate of 3.87% AER variable, plus a 1 percentage point boost paid after the first 12 months.
To qualify for the boost you need to keep at least £500 in the account and make no more than three withdrawals during the first 12 months. The boost is paid after the first anniversary of opening, so anyone who closes or transfers the ISA before that point does not receive it.
After 12 months the rate moves to the standard 3.57% AER variable. The same 3.57% rate applies from the point a fourth withdrawal is made within the first 12 months.
The minimum to open is a £500 deposit or a £5,000 ISA transfer. The offer opened on 29 July 2026 and can be withdrawn at Moneyfarm’s discretion. Every rate quoted here is variable, so all of them can change while your money is invested.
How eToro’s Cash ISA Actually Works
Unlike traditional Cash ISAs where your money sits in a savings account, eToro’s Cash ISA invests your funds in Qualifying Money Market Funds (QMMFs) through their partner Moneyfarm.
QMMFs are low-risk investments that hold short-term, high-quality debt instruments. They are designed to provide stability while generating returns that track interest rates closely. This is why eToro can offer rates competitive with most fintech-led Cash ISAs.
The practical difference for you:
- FSCS position: Eligible client assets may be covered by FSCS investment protection up to £85,000 if Moneyfarm fails. FSCS does not cover investment losses caused by market performance, and this is not the same as the deposit protection that applies to a bank or building society savings account
- Your money is segregated: Client assets are held separately from eToro and Moneyfarm
- Interest calculation: Based on money market fund performance, though presented as an AER
- Variable rates: The 3.87% introductory rate, the 4.87% boosted first year figure and the 3.57% ongoing rate are all variable and may change in line with money market conditions. You can check the current rates at etoro.com/investing/cash-isa.
The money market fund structure is regulated and well established. Client assets are held separately from eToro and Moneyfarm’s own finances, and eligible client assets may be covered by FSCS investment protection up to £85,000 if Moneyfarm fails. That protection applies to firm failure. It does not protect you against a fall in the value of the underlying fund.
Who Should Consider eToro’s Cash ISA
The eToro Cash ISA suits savers who:
- Already use eToro for investing: Managing your tax-free savings inside the same platform as your investing account simplifies your overall portfolio
- Have £500 to deposit or £5,000 to transfer: Those are the two minimum routes to open the account
- Can leave the money alone for 12 months: You need to keep at least £500 in place and stay within three withdrawals during the first year to receive the boost
- Are comfortable with investment protection rather than deposit protection: Eligible client assets may be covered by FSCS investment protection up to £85,000 if Moneyfarm fails, which is not the same cover as a bank or building society savings account
It may be less suitable if you expect to dip into the money regularly, cannot meet the £5,000 transfer minimum, want the certainty of a fixed rate, or prefer an account covered by FSCS deposit protection. Plum currently pays 4.40% AER for the first year on new deposits, including a 1.86 percentage point bonus, before dropping to 2.54%, so the better choice depends on how long you plan to leave the money in place.
Important Terms to Know
Variable rates. The 4.87% AER first year figure, the 3.87% AER standard introductory rate and the 3.57% AER ongoing rate are all variable and track money market fund performance. They are correct as of 3 August 2026 and may change. You can check the latest figures at etoro.com/investing/cash-isa.
Minimum to open. You need a deposit of at least £500, or an ISA transfer of at least £5,000.
Boost conditions. To receive the 1 percentage point boost you must keep at least £500 in the account and make no more than three withdrawals during the first 12 months. The boost is paid after the first anniversary, so closing or transferring the ISA before then means you do not receive it.
Withdrawals. You can take money out, but a fourth withdrawal within the first 12 months moves you to the 3.57% AER standard rate and forfeits the boost.
ISA transfer rules. eToro accepts ISA transfers from other providers and a transfer does not use up new allowance. The minimum transfer to open is £5,000.
Offer availability. The promotion opened on 29 July 2026, applies to eligible new Moneyfarm customers, and can be withdrawn at Moneyfarm’s discretion.
Not a bank deposit. The Cash ISA invests in a qualifying money market fund. Eligible client assets may be covered by FSCS investment protection up to £85,000 if Moneyfarm fails, and FSCS does not cover investment losses caused by market performance.
Annual ISA allowance. You can pay in up to £20,000 across all ISAs in the 2026/27 tax year, which ends on 5 April 2027. A lower annual limit for cash ISA subscriptions has been announced from April 2027, reported at £12,000 for most savers, with those aged 65 and over keeping the full £20,000. Tax rules can change, so check current HMRC guidance before planning around it.
How eToro Compares to Other Cash ISAs
At up to 4.87% AER for the first year, eToro currently sits at the top of our Cash ISA table on headline rate, but that figure is conditional and the ongoing rate is lower. Here is how it compares with other leading providers (rates as at 3 August 2026):
- eToro: up to 4.87% AER variable in year one, made up of 3.87% plus a 1 percentage point boost paid after 12 months, then 3.57% AER variable
- Plum: 4.40% AER for the first year including a 1.86 percentage point bonus, then 2.54%. The transfer-in product pays 3.75% AER including a 1.21 percentage point bonus
- Atom Bank: 4.25% AER
- XTB: 4.00% AER variable
- Moneybox: 4.00% AER variable
- Monzo: 2.75% AER on the free tier, or 3.25% AER for eligible paid plan customers
eToro leads on the first year headline, but only for savers who meet the conditions and leave the money in place for a full 12 months. Plum pays 4.40% AER in year one before dropping to 2.54%, which is below eToro’s 3.57% ongoing rate. Atom Bank, XTB and Moneybox pay less up front with fewer conditions attached. For savers already using eToro, keeping a Cash ISA in the same place can also simplify portfolio management.
For a detailed comparison of all Cash ISA providers, see our guide to the best Cash ISAs in the UK.
Our Verdict
The eToro Cash ISA suits savers who can commit money for a full 12 months. The 4.87% AER variable headline is the highest first year figure in our current Cash ISA table, but it applies only to eligible new Moneyfarm customers who open with a £500 deposit or a £5,000 transfer, keep at least £500 in place, and make no more than three withdrawals in the first 12 months. Miss any of those conditions and the rate is 3.87% AER variable at best, or 3.57% once a fourth withdrawal is made or the first year has passed.
It is a weaker fit if you need regular access to the money, want a fixed rate, or prefer the deposit protection that comes with a bank or building society savings account. The Cash ISA invests in a qualifying money market fund, so it is not a bank deposit, and every rate quoted can move with money market conditions.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. This content contains affiliate links. We may earn a commission if you sign up through them, at no extra cost to you.
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Frequently Asked Questions
How protected is the eToro Cash ISA?
Your money is invested in a qualifying money market fund rather than held as a bank deposit. Client assets are segregated from eToro and Moneyfarm’s own assets, and eligible client assets may be covered by FSCS investment protection up to £85,000 if Moneyfarm fails. FSCS does not cover investment losses caused by market performance.
Can I withdraw my money at any time?
You can withdraw, but withdrawals affect the offer. To receive the 1 percentage point boost you need to keep at least £500 in the account and make no more than three withdrawals during the first 12 months. A fourth withdrawal moves you to the 3.57% AER standard rate.
Is the 4.87% rate fixed?
No. The 4.87% AER first year figure is variable and conditional, and it is made up of a 3.87% AER standard introductory rate plus a 1 percentage point boost paid after 12 months. The rate then moves to 3.57% AER variable. All of these rates track the performance of the underlying money market fund and can change. Always check etoro.com/investing/cash-isa for the latest figures.
Can I transfer my existing Cash ISA to eToro?
Yes. eToro accepts ISA transfers from other providers and a transfer does not use up your annual allowance. The minimum transfer to open the account is £5,000, against a £500 minimum for a new deposit.
Why does investment protection apply rather than deposit protection?
The Cash ISA invests in a qualifying money market fund rather than holding your money as a cash deposit with a bank. Eligible client assets therefore fall under FSCS investment protection, up to £85,000 if Moneyfarm fails, rather than the deposit protection that applies to bank and building society savings accounts. FSCS investment protection does not cover investment losses caused by market performance.
Do I need an existing eToro account?
You will need to create an eToro account to access the Cash ISA. The Cash ISA itself is delivered through Moneyfarm, eToro’s ISA partner.
Risk Disclaimer: eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. The Cash ISA invests in a qualifying money market fund and is not a bank deposit. Eligible client assets may be covered by FSCS investment protection up to £85,000 if Moneyfarm fails, and FSCS does not cover investment losses caused by market performance. Tax treatment depends on individual circumstances and may change in the future. Rates of 4.87%, 3.87% and 3.57% AER are variable and correct as of 3 August 2026. This content contains affiliate links. We may earn a commission if you sign up through them, at no extra cost to you.
