XTB is taking another step away from its roots as a derivatives broker, rolling out a Cash ISA in the UK that puts it in direct competition with savings-focused fintech platforms like Trading 212, Plum, and recently also eToro.

The Polish-listed broker (WSE: XTB) launched the product this week, pairing it with a 6% AER introductory rate for new customers who open an account before the end of April. The boosted rate, which includes a 2 percentage point bonus on top of XTB's standard 4% variable rate, lasts 90 days and applies to balances up to £40,000 across eligible accounts, including both the Cash ISA and the company's existing Stocks & Shares ISA.

XTB Is Completing the ISA Suite

XTB entered the UK ISA market in December 2024 with a Stocks & Shares ISA, but the addition of a Cash ISA is a meaningful step. It's the product that most UK savers actually use. The Cash ISA allows deposits of up to £20,000 per tax year, with interest earned tax-free. XTB is structuring it as a flexible ISA, meaning customers can withdraw and replace funds within the same tax year without losing their annual allowance.

There are no account fees, no minimum deposit beyond £10, and client money is held in segregated Tier 1 bank accounts under CASS rules with FSCS protection up to £120,000.

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Joshua Raymond, XTB's UK Managing Director, framed the launch around a timing argument: with markets pricing in potential Bank of England rate cuts as soon as this month, the window for locking in higher savings rates may be closing.

"Too much of the UK's savings are still parked in accounts doing very little, and more people are now being drawn into paying tax on their interest," Raymond said. "But with markets increasingly expecting interest rates to drop again, potentially this month, people are also realising that today's higher returns may not last forever."

Competing on Rate in a Crowded Market

XTB's 6% headline rate tops the current field, at least on paper. Trading 212 is offering 4.4% for new customers through a 12-month bonus, while Plum's promotional rate hits 4.32% but only for the first year. Moneybox pays 4.32% but drops sharply to 0.75% if customers make more than three withdrawals annually.

eToro, which recently entered the Cash ISA space through a partnership with Moneyfarm, offers a standard introductory rate of 3.67% AER.

The comparison matters because XTB's 6% reverts to 4% after just 90 days - not 12 months. That makes the headline figure competitive for the short term, but customers staying beyond the promotional window would likely find better fixed rates elsewhere.

Brokers Are Divided on Cash ISAs

XTB's launch drops into a live industry debate. IG has been pushing back against Cash ISAs through its "Save Our Stock Market" campaign, arguing that tax-advantaged cash savings pull money away from UK equities and weaken domestic capital markets. IG has gone as far as calling for new Cash ISA openings to be restricted.

XTB is clearly on the other side of that argument. Raymond's pitch is that saving and investing don't have to be separate decisions, and that combining both products in one app removes friction for customers managing their finances.

That positioning fits a broader pattern for XTB. The company has been steadily building out tax-advantaged investment accounts across Europe, launching IKZE retirement accounts in Poland last July, and PEA investment accounts in France in April 2025, as part of a deliberate shift toward longer-term retail investors and away from a pure CFD trading identity.

UK Retail Investing Race Intensifies

The UK retail investment market is getting more competitive on multiple fronts. Robinhood launched a Stocks & Shares product in the UK in February, adding another well-funded name to the mix. Meanwhile, research suggests one in five UK adults plans to start investing small amounts monthly in 2026, creating a larger addressable market for platforms that can convert savers into investors.

For XTB, the Cash ISA is less about dominating the savings market and more about owning a fuller slice of a customer's financial life, keeping money inside the platform rather than losing it to a standalone savings app.

Whether the 90-day rate is enough to make that happen is another question.