---
title: "Flexible cash ISAs"
metaTitle: "Flexible cash ISAs"
order: 1
showPageMenu: true
---
import EndpointBlock from "src/components/endpoint-block";
import Callout from "src/components/callout";
import WebhookPlaceholder from 'src/components/webhook-placeholder';
import WebhookSummary from 'src/components/webhook-summary';
import ExternalLink from 'src/components/external-link';
## Flexible cash ISAs overview
A cash ISA (Individual Savings Account) is a real savings deposit account held with ClearBank that's subject to certain tax benefits defined by the UK government. It is eligible for FSCS protection, and can be used to send and/or receive payments once a **nominated account** has been defined.
Note: Deposits held in ClearBank cash ISAs may be eligible for FSCS protection. FSCS protection insures deposits of up to £120,000 per person or legal entity per authorised firm (ClearBank) in the event of insolvency. Customers should review the specific terms and conditions of their account to confirm whether FSCS protection applies.
A **nominated account** is the account that you transfer funds from, and any remaining funds and interest will be transferred into upon closure of the cash ISA.
The balance of a cash ISA is held by ClearBank and can only be viewed via our API. Cash ISAs are reconciled for you by ClearBank. To open a cash ISA, your customer must provide you with their national insurance number and confirm they are a UK resident.
Funds can be transferred in from either the nominated account or another ClearBank account held by your organisation. Name matching between ClearBank accounts is your responsibility.
Because cash ISAs are structured differently to other GBP account types, you must use the endpoints defined on this page to interact with them. Do not use the endpoints listed on the [Manage sterling accounts page](/uk/docs/gbp-accounts/manage-accounts).
You can create and manage customers with cash ISAs using the endpoints listed on the [Retail customers page](/uk/docs/embedded-banking/retail/manage-retail-customers).
The sections below explain how to:
- [Set up a cash ISA](#set-up-a-cash-isa)
- [Close or cancel a cash ISA](#end-of-life-for-a-cash-isa)
- [Manually transfer in a cash ISA](#transfer-a-cash-isa-in-manually)
- [Manually transfer out a cash ISA ](#transfer-a-cash-isa-out-manually)
- [Automatically transfer in a cash ISA ](#transfer-a-cash-isa-in-automatically)
- [Automatically transfer out cash ISA ](#automated-cash-isa-transfer-out)
### Set up a cash ISA
When creating a new cash ISA, you need to first create the account, then set up the nominated account.
If the customer does not already exist, you need to first create a retail customer using the POST /v1/customers/retail endpoint.
To set up a cash ISA:
1. Use the [POST /v1/isas](#create-a-cash-isa) endpoint to create the account
> You cannot deposit funds into the cash ISA before the nominated account has been defined.
2. After receiving the Account Created webhook, use the [PUT /v1/accounts/{accountId}/nominated-account](#set-a-nominated-account) endpoint to define the nominated account for the cash ISA
> You can now deposit funds into the cash ISA.
The process is shown in this message flow diagram:
The account is now open and fully operational. You can retrieve information on all ISAs by using the [GET /v3/accounts](#get-all-accounts-real) endpoint and filtering for ISAs. You can also retrieve details on a specific cash ISA using the [GET /v1/isas/{accountId}](#get-cash-isa-details) endpoint.
You can amend the details or the status of a cash ISA using the [PATCH /v1/accounts/{accountId}](#amend-cash-isa-details-or-status) endpoint.
To retrieve end of day balances for a cash ISA, use the [camt.053 endpoints](/uk/docs/gbp-accounts/account-reporting#statements).
The endpoints for retrieving all ISAs and amending cash ISA details or status are the same as those used for real accounts.
### End of life for a cash ISA
There are several ways you can close a cash ISA. You need to choose the appropriate one based on what's happened in the account journey so far and what the customer wants to do with the account next.
| Action | What this does |
| ----------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| [Close](#close) | Closes the account. |
| [Cancel](#cancel) | Cancels and closes the account without registering the account with the UK government. The account must be under 14 days old and must have had funds deposited. |
| [Transfer out](#transfer-out) | Allows you to transfer the account to another provider. Once transfer out has been successful, you then need to close the account. |
You can use this diagram to validate if the account should be closed, cancelled or transferred out:
The sections below explain how to:
- [Close a cash ISA](#close)
- [Cancel a cash ISA](#cancel)
- [Transfer out a cash ISA](#transfer-out)
#### Close
When closing a cash ISA, you must first withdraw funds before closing the account.
If the cash ISA is under 14 days old and has had money deposited, use the cancel a cash ISA endpoint instead.
Before an account closure can be requested, the account balance must be zero. Funds can be withdrawn to a nominated account or another ClearBank account. If any interest has been accrued, it will be paid to the nominated account.
If the account balance is not zero, the request will be rejected. **Account closure requests cannot be undone.**
To close a cash ISA:
1. Withdraw all funds from the cash ISA.
2. Use the [POST /v1/accounts/{accountId}/closure](#close-a-cash-isa) endpoint to request the account closure.
> This process is asynchronous. The cash ISA is now frozen. Once the request is accepted, the account closure is pending until, if the account has accrued interest, the last interest payment is calculated and paid. This interest payment will be made to the nominated account. Once the payment has completed, the account will be closed.
3. OPTIONAL Use the [GET /v1/accounts/{accountId}/closure](#get-cash-isa-closure-status) endpoint to check whether the account has been closed.
4. You will receive either the Account Closure Completed or Account Closure Failed webhook once the account closure process has completed.
If the account closure fails, re-request the closure.
The process is shown in this message flow diagram:
#### Cancel
When cancelling a cash ISA, the account must be under fourteen days old. This endpoint also closes the account.
The cancellation period is based on the acceptance date field. For example, an account with the acceptance date of the 1st of the month can be cancelled up to 23:59 on the 14th day of the month.
Money must have already been deposited into the cash ISA. If no money has been deposited, or the account is over 14 days old, use the POST /v1/accounts/{accountId}/closure endpoint instead.
To cancel a cash ISA:
1. Withdraw all funds from the cash ISA.
2. Use the [POST /v1/isas/{accountId}/cancellation](#cancel-a-cash-isa) to request the cancellation.
> This process is asynchronous. The cash ISA is now frozen. Once the request is accepted, the account closure is pending until, if the account has accrued interest, the last interest payment is calculated and paid. This interest payment will be made to the nominated account. Once the payment has completed, the account will be closed.
3. OPTIONAL Use the [GET /v1/accounts/{accountId}/closure](#check-cash-isa-closure-status) endpoint to check whether the account has been cancelled.
4. You will receive either the Account Closure Completed or Account Closure Failed webhook once the account cancellation process has completed.
The process is shown in this message flow diagram:
### Manage customer ISA eligibility
Customers can be made ineligible for cash ISAs. While a customer is ineligible, they cannot pay funds into their cash ISA.
Ineligible customers should still be able to withdraw funds from their cash ISA.
Customers can be made ineligible for cash ISA subscriptions for these reasons:
* You notified us that the customer's address is now outside the UK
* You notified us that the customer's place of residence is now outside the UK
* You provided us an invalid date of birth for the customer
* You provided us an invalid National Insurance (NI) number for the customer
**When a customer moves their address out of the UK, they can continue making subscriptions until the current tax year ends.**
You should notify us of customer address changes via the [**PUT /v1/customers/retail/{customerId}/currentaddress**](/uk/docs/embedded-banking/retail/manage-retail-customers#update-an-existing-retail-customers-address) endpoint.
If the customer's address returns to the UK in the next tax year, you should submit a new declaration of ISA eligibility.
**When a customer moves their place of residence out of the UK, no further subscriptions can be made.**
You should notify us of customer country of residence changes via the [**PATCH /v1/customers/retail/{customerId}**](/uk/docs/embedded-banking/retail/manage-retail-customers#update-an-existing-retail-customers-personal-information) endpoint.
If the customer's place of residence returns to the UK, you should notify us of this then submit a new declaration of ISA eligibility.
**When a customer's date of birth or NI number is found to be invalid, no further subscriptions can be made.**
Once you have obtained a corrected NI or date of birth for the customer, use the [**PATCH /v1/customers/retail/{customerId}**](/uk/docs/embedded-banking/retail/manage-retail-customers#update-an-existing-retail-customers-personal-information) endpoint to notify us of this then submit a new declaration of ISA eligibility.
You can submit a declaration of ISA eligibility using the [**POST /isas/{accountId}/declaration**](#set-a-new-isa-declaration) endpoint. Verify the `customerEligibilityStatus` field in the response has been set to `Eligible`.
You can also use the [**GET /v1/isas/{accountId}**](#get-cash-isa-details) endpoint to check the customer's eligibility status at any time.
## Setting up a cash ISA
## Subscribe to or withdraw from a cash ISA
You can use the Faster Payments endpoint to subscribe to or withdraw from a cash ISA.
## Closing a cash ISA
## Cash ISA transfers
ClearBank offers two methods of transferring a cash ISA in or out:
**Manual transfer:** Transfers are initiated and managed manually via ClearBank’s API and email workflows. The process involves coordination between the new and old ISA providers using forms like the Transfer Authority Form (TAF) and Transfer History Form (THF).
**Timeline:** Governed by HMRC’s SLA (Service Level Agreement) of **15 working days**.
**Automated transfer:** Transfers are initiated and tracked via ClearBank’s API endpoints integrated with Pay.UK’s automated service. This includes POST, PUT, and PATCH endpoints for initiating, resubmitting, and updating transfer requests.
**Timeline:** Voluntary SLA under Pay.UK of **7 working days**.
Automated transfers are only available when both ISA providers are accredited participants of the Pay.UK scheme. If one provider is not a participant, the manual transfer process must be used.
Each transfer is assigned a **Unique Reference Number (URN)**, which is a system-generated identifier used to track and manage a transfer throughout its lifecycle. Key functions of the URN include:
- **Identification** - The URN uniquely identifies a specific transfer request, allowing both the ceding and acquiring ISA providers to reference the same transaction
- **Lifecycle tracking** - Various systems allow for the tracking of the current transfer state using the URN
- **Exception handling** - In cases of escalation or failure, the URN helps determine whether the issue lies with the originating provider or the receiving institution
- **Validation** - The ceding or acquiring ISA provider uses the URN to match incoming messages to its records and validate transfer details such as account info, subscription limits, and customer identity
## Manually transfer a cash ISA in
ClearBank supports full or partial transfers in of cash ISAs.
During the transfer in process, the previous ISA manager will transfer the cash ISA funds to a transfer in hub account created during onboarding. Once you have received the transfer history form from them and submitted it to us, you can then move funds from the hub account to the cash ISA.
If you want to reject an existing transfer in request, use the [POST /v1/isas/{accountId}/transfer-in/{transferInId}/rejection](#reject-a-transfer-in) endpoint.
To transfer in a cash ISA:
1. If a cash ISA doesn't already exist, you'll need to [set up a cash ISA](#set-up-a-cash-isa) first.
2. Use the [POST /v1/isas/{accountId}/transfer-in](#transfer-in-a-cash-isa) endpoint.
> You must provide a unique payment reference in the `PaymentReference` field when calling this endpoint. This reference will be used for reconciliation when the funds enter the transfer in or leave the transfer out hub.
3. When the previous manager of the cash ISA moves funds into the transfer hub, you will receive the [Transaction Settled webhook](#transaction-settled-webhook). They will also send you the transfer history form.
4. Use the [PUT /v1/isas/{accountId}/transfer-in/{transferInId}/transfer-history-form](#submit-a-transfer-history-form) endpoint to submit the transfer history form to us.
> OPTIONAL To check the status of a transfer in, use the [GET /v1/isas/{accountId}/transfer-in/{transferInId}](#get-information-on-a-transfer-in) endpoint.
5. Once the transfer in has been approved, move the funds from the transfer hub to the cash ISA.
## Manually transfer a cash ISA out
You can also transfer a cash ISA to another provider. Once the transfer out is successful and the waiting period has completed, you'll need to close the account using the [POST /v1/accounts/{accountId}/closure](#close-a-cash-isa) endpoint.
During the transfer out process, you move funds to a transfer out hub account created during onboarding. The cash ISA is then frozen. If the transfer out is successful, you can then move the funds from the transfer out hub to the new provider's account. There is a mandatory 15 working day waiting period before you can close the account. For example: if you requested a transfer out on Tuesday in week 1, the waiting period would end at 00:00 on Wednesday morning in week 4 (assuming there are no bank holidays). After that, you can close the account.
If the transfer out fails, the new provider will provide you a reason the transfer failed and they will return funds to the transfer out hub. Use the [POST /v1/isas/{accountId}/transfer-outs/rejection](#reject-a-transfer-out) endpoint to let ClearBank know the transfer out was unsuccessful and to unfreeze the account and return the account to the state it was before you requested the transfer out. Once the account is unfrozen, transfer the funds back into the cash ISA. The cash ISA will now continue to exist.
To transfer out a cash ISA:
1. Use the [POST /v1/isas/{accountId}/transfer-outs](#transfer-out-a-cash-isa).
> The cash ISA is now frozen. Only accrued interest, if any, can be credited to the account, and only the full balance can be withdrawn from the account.
2. Once the account has been credited the final interest payment, withdraw the full balance of the account to the transfer out hub account created during onboarding. From there, you can send the funds to the new provider.
3. Wait at least the remainder of the 15 working day waiting period to ensure the transfer out has been successful.
4. Once the transfer has successfully completed, use the [POST /v1/accounts/{accountId}/closure](#close-a-cash-isa) endpoint to request the account closure.
5. OPTIONAL Use the [GET /v1/accounts/{accountId}/closure](#get-cash-isa-closure-status) endpoint to check whether the account has been closed.
6. You will receive either the Account Closure Completed or Account Closure Failed webhook once the account closure process has completed.
The process is shown in this message flow diagram:
## Automated cash ISA transfer in
An automated transfer in occurs when a customer approaches you to transfer their ISA from another ISA Manager (the ceding party) to ClearBank via Pay.UK's ISA transfer service.
To complete an automated transfer in:
1. The customer requests you to transfer the cash ISA from the current institution holding the account (the ceding party).
2. You call the **POST /v1/isas/{accountId}/automated-transfer-in** endpoint providing the necessary details.
3. The transfer request is validated and submitted to the Pay.UK transfer service for further validation.
4. You receive the **Transfer Request webhook** confirming the transfer request has been sent.
5. The ceding party receives a **Transfer Request message**, validates the details and responds with a **Transfer Acceptance message**.
6. You receive the **Transfer Request Accepted webhook**.
7. The ceding party is sent a **Ready For Payment Request message**.
8. You receive the **Transfer Status Update webhook** with the `State` of `ReadyForPayment`.
9. The ceding party sends the funds to your ClearBank transfer hub account (created during onboarding).
10. You receive the **Transfer Status Update webhook** with the `State` of `PaymentReceived`.
11. You call the **POST /v3/payments/fps** endpoint to move the funds from your transfer hub account to the customers new account.
12. You receive the **Transaction Settled webhook**.
13. The ceding party receives a **Transfer Complete message**.
14. You receive the **Transfer Status Update webhook** with the State of `Completed`.
**Automated transfer in referred**
When the ceding party receives the Transfer Request message, they may respond advising the request has been referred. This typically means that the transfer request has encountered a condition that prevents it from proceeding automatically and requires manual review or intervention. For example, they may contact the customer who holds the ISA to confirm that they requested the transfer.
Following the referral, the ceding party can:
**Accept the transfer:**
**or reject the transfer:**
If the transfer is rejected, the customer should decide how they wish to proceed, either:
- **Resubmit the transfer request** - you can do this by calling the [**PUT /v1/isas/{accountId}/automated-transfer-in/{urn}**](#resubmit-an-automated-cash-isa-transfer-in) and providing the URN of the existing transfer, or
- **Abandon the transfer request** - you can update the existing transfer request to abandoned by calling the **PATCH /v1/isas/{accountId}/automated-transfer-in/{urn}**, providing the URN of the existing transfer, and update the `State` to `Abandoned`.
## Automated cash ISA transfer out
To complete an automated transfer out:
1. The customer contacts the acquiring party (the financial institution they want to transfer their current cash ISA to).
2. The acquiring party sends a **Transfer Request message** to ClearBank through the Pay.UK transfer service.
3. You receive the **Transfer Request webhook**.
4. The transfer request is validated and a **Transfer Acceptance message** is sent to the acquiring party.
5. You receive the **Transfer Accepted webhook**.
6. Before transferring the funds, you can contact the customer to confirm the transfer.
7. The acquiring party sends a **Ready For Payment Request message**.
8. You receive the **Transfer Status Update webhook** with the `State` of `ReadyForPayment`.
9. You call the **POST /v3/payments/fps** endpoint to move the funds from the cash ISA to your transfer hub account (created during onboarding).
10. You receive the **Transaction Settled webhook**.
11. You call the **POST /v3/payments/fps** endpoint to move the funds from your transfer hub account to the account details provided by the acquiring party.
12. You receive the **Transaction Settled webhook**.
13. The acquiring party sends a **Transfer Completed message**.
14. You receive the **Transfer Status Update webhook** with the `State` of `Completed`.
**Automated transfer out referred or rejected**
When the Transfer Request message is received from the acquiring party, the provided details are validated against the following which can result in the transfer request being **referred** or **rejected**:
**Referred:**
- Fuzzy match check on the customer's given name, surname, address, date of birth, National Insurance number, and account details returns a close but not exact match.
- Balance of the ISA is £50,000.00 or more .
If the transfer is referred, a Transfer Referral message is sent to the acquiring party. Once referred:
- You can contact the customer to confirm if they requested the transfer. Depending on their answer, you can then use the **PATCH /v1/isas/{accountId}/automated-transfer-out/{urn}** to update the `State` to `Accept` or `Rejected` and provide a reason.
- The acquiring party can choose to abandon the transfer by sending a Transfer Abandoned message or take no action if they want to continue with the transfer.
**Rejected:**
- A fuzzy match check on the customer's given name, surname, address, date of birth, National Insurance number, or account details returns no match or too fuzzy.
- The request is for a partial transfer out (not currently supported).
- Account has insufficient funds to meet the transfer request.
- The amount to transfer would result in the ISA exceeding the annual allowance.
If the transfer is rejected, a Transfer Rejected message is sent to the acquiring party. Once rejected, the acquiring party can choose to:
- Amend the transfer request and resubmit using the existing or a new URN.
- Abandon the transfer by sending a Transfer Abandoned message.
## Simulating ISA transfer scenarios
As part of your simulation onboarding process, you'll be required to simulate several scenarios to prove your system's capability before graduating to our production environment.