eToro Cash ISA Review 2026: 3.82% AER Variable Rate
eToro offers a Cash ISA at 3.82% AER variable, delivered through a partnership with Moneyfarm. The Cash ISA uses Qualifying Money Market Funds (QMMFs) rather than traditional cash deposits, which lets the rate stay competitive with most fintech-led ISAs. For a full comparison against other UK Cash ISA providers, see our Best Cash ISAs UK guide.
This review covers how the eToro Cash ISA works, the FSCS protection structure, the practical terms to be aware of, and who it suits.
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 protection: £85,000 (investment protection) rather than £120,000 (cash deposit protection)
- Your money is segregated: Neither eToro nor Moneyfarm can access your funds
- Interest calculation: Based on QMMF performance, though presented as an AER
- Variable rate: The 3.82% AER is variable and may change in line with money market conditions. You can check the current rate at etoro.com/investing/cash-isa.
The QMMF structure is regulated and well-established. Your assets are held separately from eToro and Moneyfarm’s own finances, meaning if either company were to fail, your money would be protected.
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 at least £500 to deposit: Or are transferring from an existing ISA
- Are comfortable with QMMF-based protection: FSCS investment protection up to £85,000 instead of cash deposit protection up to £120,000
- Want a flexible ISA: Withdraw and replace funds within the same tax year without affecting your annual allowance
It may be less suitable if you want the highest available rate (currently offered by Plum at 4.31% AER), prefer the higher £120,000 FSCS deposit protection, or want a fixed-rate product rather than a variable one.
Important Terms to Know
Variable rate. The 3.82% AER is variable and tracks Qualifying Money Market Fund performance. The current rate is correct as of May 2026 and may change. You can check the latest figure at etoro.com/investing/cash-isa.
Minimum deposit. You need to deposit at least £500 to open the account, or initiate an ISA transfer from another provider.
Flexible ISA. You can withdraw and replace funds within the same tax year without affecting your annual ISA allowance.
ISA transfer rules. eToro accepts ISA transfers from other providers without using up new allowance. Transferred funds earn the same standard rate as new deposits.
Annual ISA allowance. You can deposit up to £20,000 across all ISAs in the 2025/26 tax year (ending 5 April 2026). From April 2027, this allowance drops to £12,000 for most people, with over-65s retaining the £20,000 limit.
How eToro Compares to Other Cash ISAs
At 3.82% AER, eToro’s Cash ISA sits in the middle of the UK market. Here is how it compares to the leading providers (rates verified May 2026):
- Plum: 4.31% AER (includes 12-month bonus)
- Atom Bank: 4.25% AER (flat rate, no bonus)
- XTB: 4.00% AER (flat rate, no bonus)
- Moneybox: 4.00% AER (includes 12-month bonus)
- eToro: 3.82% AER variable
- Trading 212: 3.60% AER (BoE tracker)
eToro’s value lies less in being the absolute top rate and more in offering a competitive variable rate alongside its existing investment platform. For savers already using eToro, keeping a Cash ISA in the same place can simplify portfolio management.
For a detailed comparison of all Cash ISA providers, see our guide to the best Cash ISAs in the UK.
Related Articles
Looking for more UK investment options? Check out these guides:
- eToro UK Bonus - Get up to $500 in free stocks when you sign up
- eToro ISA Review - Tax-free investing with eToro’s Stocks & Shares ISA
- Best Stock Brokers in the UK - Compare the top UK trading platforms
- Best High-Yield Savings Accounts in the UK - Compare the best savings rates
Frequently Asked Questions
Is the eToro Cash ISA safe?
Yes. Your funds are held in Qualifying Money Market Funds which are segregated from eToro and Moneyfarm’s own assets. The account is covered by FSCS investment protection up to £85,000 per person.
Can I withdraw my money at any time?
Yes, the eToro Cash ISA is flexible, meaning you can withdraw and redeposit within the same tax year without affecting your ISA allowance.
Is the 3.82% rate fixed?
No, the rate is variable and tracks the performance of the underlying Qualifying Money Market Fund. The rate may change in line with money market conditions. Always check etoro.com/investing/cash-isa for the latest figure.
Can I transfer my existing Cash ISA to eToro?
Yes, eToro accepts ISA transfers from other providers. Transferred funds earn the same standard rate as new deposits and do not use up your annual allowance.
Why is FSCS protection only £85,000 instead of £120,000?
Because the Cash ISA uses QMMFs (investments) rather than traditional cash deposits, it falls under FSCS investment protection (£85,000) rather than deposit protection (£120,000). The underlying funds are still segregated and low-risk.
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: As with all investing, your capital is at risk. The value of your portfolio with Moneyfarm can go down as well as up and you may get back less than you invest. Tax treatment depends on individual circumstances and may change in the future. Rate of 3.82% AER is variable and correct as of May 2026.
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