It's another good news day — we’ve increased our cash Lifetime ISA's interest rate again to 3.8% AER (variable) 🎉



In bankglish, that’s 3.8% AER (annual equivalent rate – aka: per year.)

That means, if you open a Nude cash Lifetime ISA from today, you’ll earn 3.8% interest on your savings annually on top of that 25% government bonus 🚀


All of our cash Lifetime ISA savers get the new rate: it's only fair 🙌

Introductory rates that fade away after year #1 aren't our kinda thing: we give all of our cash Lifetime ISA savers the same interest rate – whether they're new, or have been with us for a while.

Because after all: we're here to help everybody to get into their first home sooner, not just those who were last in the door.


So, why are we raising our rate again?



Our #1 goal is to make things fairer for first-time buyers (that's you!) and part of that means giving great rates to our customers, to make your savings work a little harder.

Interest is just one bit of the picture when it comes to saving for your first home, but we regularly check-in as a team to make sure that we're passing on a fair rate to our customers.

How does the interest rate thing actually work?

If you have a cash Lifetime ISA with us, you qualify to earn interest on your balance from day one.

If you're transferring over to us (or thinking about it), as soon as your new Nude account is open, you'll start to earn interest on the balance in your account.

If you're a new customer, you'll start earnng interest as soon as your balance is > £0. A pretty good reason to make a contribution into your Lifetime ISA as soon as you've finished setting it up if you ask us...

How much interest you're due is based on the full amount in your account – so you get interest on the government bonus you've earned and the money you've saved yourself. It's calculated daily, then you receive the interest payments every month.

If you're interested (pun intended), the way annual equivalent rates (aka AER) work is by dividing the interest rate by the 365 days in the year. So every day, you earn 1/365th of 3.8% on your account balance. We calculate your interest daily. and then apply it to your account monthly.

It gets added straight into your cash Lifetime ISA around the 8th working day of each month: you'll be able to see interest payments in the Account tab of the app 🔥

We're more than just a (great) interest rate

Rates are just one piece of the puzzle: apart from a 3.8% interest rate, you also get an app that helps you to get in control of your money, plus game-changing features that you can’t get with other Lifetime ISAs.

After all, we want you to be able to get into your home sooner – just don’t forget to invite us to the housewarming...

Here's the wordy disclaimer bit we have to include which can help you to understand more about the terms: Interest rates can rise as well as fall. Our approach to interest rate increases and decreases can be found in our customer agreement. If there are any future decreases in interest rate, we will issue notice to all account holders at least 110 days before the change takes place.