Eligible for ISA?

Hi, I am an international student from Japan in the UK and I wonder if I would be eligible to open an ISA account… Since I have so much money in my bank account waiting to be deposited for my tuition it would be good to get some interests from them by putting in cash ISA.

I have moved to the UK on 2nd October this year and am not thinking of travelling out of the UK until the end of this tax year. Then I would have spent 186 days in the UK at 5th April 2025 and if I am understanding correctly I will be considered a tax resident for this tax year since I would have spent more than 183 days in the UK.

Now if I want to open an ISA account (both stocks & cash) do you think I can open it right now or do I have to wait until 6th April 2025? Also if you know anything about tax I might have to pay to the UK or Japan for the income from these ISA accounts I would be more than happy to know.

Thank you for much for your help.

Hi,

Thank you for your question! To open an ISA, you must be a resident in the UK. Since you moved in October, you likely qualify as a resident now (you just need to provide a proof of residence) and can open an ISA immediately.

Things to keep in mind:

  • ISAs allow you to save up to £20,000 tax-free in the current tax year, and you won’t pay tax on the interest earned. However if you exceed this amount you’ll be subject to pay taxes for any amount above £20,000.
  • You can also withdraw money anytime without losing the tax benefits, though watch out for withdrawal fees. Some providers might charge you once you want to transfer money out from your account.

Keep in mind that an ISA is not the only option for earning interest on uninvested cash. Some brokers pay interest on money which is simply parked in their standard accounts. You can explore the best options here: https://brokerchooser.com/best-brokers/best-brokers-for-GBP-cash-interest. Just note, these accounts are not tax-free like ISAs.

Let me know if you have more questions!

Best,
Andris