cash stack icon

Cash ISAs

Cash ISAs are a tax-free savings account that is available to UK residents. There are various types of Cash ISA but if a better rate is available elsewhere, it is possible to transfer ISAs to other providers.

Start comparing today's best Cash ISA Rates in our comparison charts below.

Moneyfacts - providing comprehensive comparison charts to the public and financial sectors for over 35 years. Compare rates now.

Advertisement

Best cash ISA rates

Best cash ISA rates

Press to increase amount Press to decrease amount

<p>We found <strong>406 PRODUCTS </strong>in total, of which <strong>57 have links to providers</strong></p>

Press for help tip

Selecting ‘Provider Links First’ brings all products with a ‘Go to Provider’s Site’ button that you can apply for directly via Moneyfactscompare to the top of the chart, in rate order. Other products will appear below, again in rate order. Selecting ‘Rate Order’ will change the chart to list all products in rate order. Selecting ‘Favourites First’ will bring your chosen products to the top of the chart in rate order with those with Provider Links shown first.

We are searching our databases for your products...

  • Plum Plum Cash ISA
    AER
    Press for help tip
    4.93%
    Includes a bonus for 12 months
    Account Type
    Press for help tip
    Cash ISA
    Notice
    Press for help tip
    None
    Interest Paid
    Press for help tip
    Monthly
    Go To Provider's Site
  • Trading 212 Cash ISA
    AER
    Press for help tip
    4.90%
    Account Type
    Press for help tip
    Cash ISA
    Notice
    Press for help tip
    None
    Interest Paid
    Press for help tip
    Daily
    Go To Provider's Site
  • Mansfield BS Double Access Cash ISA (1st Issue)
    AER
    Press for help tip
    4.75%
    Account Type
    Press for help tip
    Cash ISA
    Notice
    Press for help tip
    None
    Interest Paid
    Press for help tip
    Yearly
    Go To Provider's Site
  • Chip Chip Cash ISA (powered by ClearBank)
    AER
    Press for help tip
    4.58%
    Account Type
    Press for help tip
    Cash ISA
    Notice
    Press for help tip
    None
    Interest Paid
    Press for help tip
    Monthly
    Go To Provider's Site
  • Shawbrook Bank 1 Year Fixed Rate Cash ISA Bond Issue 112
    AER
    Press for help tip
    4.53%
    Account Type
    Press for help tip
    Cash ISA
    Term
    Press for help tip
    1 Year Bond
    Interest Paid
    Press for help tip
    On Maturity
    Further Options ˅
    Go To Provider's Site
    AER
    Press for help tip
    4.53%
    Account Type
    Press for help tip
    Cash ISA
    Term
    Press for help tip
    1 Year Bond
    Interest Paid
    Press for help tip
    Monthly
    Go To Provider's Site
  • UBL UK HL Active Savings - Easy Access Cash ISA
    AER
    Press for help tip
    4.51%
    Account Type
    Press for help tip
    Cash ISA
    Notice
    Press for help tip
    None
    Interest Paid
    Press for help tip
    Monthly
    Go To Provider's Site
  • Vida Savings HL Active Savings - Easy Access Cash ISA
    AER
    Press for help tip
    4.50%
    Account Type
    Press for help tip
    Cash ISA
    Notice
    Press for help tip
    None
    Interest Paid
    Press for help tip
    Monthly
    Go To Provider's Site
  • Charter Savings Bank 1 Year Fixed Rate Cash ISA
    AER
    Press for help tip
    4.49%
    Account Type
    Press for help tip
    Cash ISA
    Term
    Press for help tip
    1 Year Bond
    Interest Paid
    Press for help tip
    Anniversary
    Further Options ˅
    Go To Provider's Site
    AER
    Press for help tip
    4.49%
    Account Type
    Press for help tip
    Cash ISA
    Term
    Press for help tip
    1 Year Bond
    Interest Paid
    Press for help tip
    Monthly
    Go To Provider's Site
  • Kent Reliance One Year Fixed Rate Cash ISA - Issue 111
    AER
    Press for help tip
    4.48%
    Account Type
    Press for help tip
    Cash ISA
    Term
    Press for help tip
    1 Year Bond
    Interest Paid
    Press for help tip
    On Maturity
    Further Options ˅
    Go To Provider's Site
    AER
    Press for help tip
    4.48%
    Account Type
    Press for help tip
    Cash ISA
    Term
    Press for help tip
    1 Year Bond
    Interest Paid
    Press for help tip
    Monthly
    Go To Provider's Site
  • Hampshire Trust Bank 1 Year Online ISA Fixed Saver (Issue 36)
    AER
    Press for help tip
    4.46%
    Account Type
    Press for help tip
    Cash ISA
    Term
    Press for help tip
    1 Year Bond
    Interest Paid
    Press for help tip
    Anniversary
    Go To Provider's Site
Depositor Protection

Eligible deposits with UK institutions are protected by the FSCS up to £85,000 per person per institution. Covers all new UK bank and savings accounts for UK customers.

Disclaimer

All rates subject to change without notice. Please check all rates and terms before investing or borrowing.

Provider Links

Links like ‘Go To Provider's Site’ or ‘Speak to a Broker’ connect you to providers or brokers we work with, for which we may receive a commission if you click or apply.

Favourites

Clicking the heart icon marks a product as a favourite for 14 days (if cookies are enabled), allowing you to filter and sort favourites at the top of the list.

Cash ISAs Explained

At a glance

  • Cash ISAs are one of the most popular ways to save, and with the interest that you earn in these accounts paid tax-free, it is easy to see why.
  • The ability of Cash ISAs to accumulate tax-free benefits and the hope that interest rates will rise means cash ISAs remain an important savings option, despite the introduction of the Personal Savings Allowance.

What are the advantages of cash ISAs?

The main advantage of a cash ISA is its tax-free status, with returns and capital growth free from income and capital gains tax. This is important because the interest you earn from a traditional savings account may be subject to income tax; so, depending on how much savings interest you earn, up to 45% of this may be taxable.

How much can I put in a cash ISA?

In the 2024/25 tax year, the ISA allowance is £20,000. You can choose to use your ISA allowance in a cash ISA, a stocks & shares ISA, an innovative finance ISA, a lifetime ISA (which has a lower limit of £4,000) or any combination of the four, as long as you don't exceed the annual allowance.

This means that the most you can pay into a cash ISA in any tax year is £20,000; if you do this, you will not be able to put any money into any of the other types of ISA. 

Since the introduction of the Personal Savings Allowance in April 2016, which allows basic rate taxpayers to earn £1,000 of savings income tax-free (£500 for higher rate taxpayers), questions have been raised over the value of using an ISA for savings.

However, making use of their ISA allowance still makes sense for some savers. This is because:

  1. The tax benefits in an ISA are cumulative, meaning you can shelter ever larger sums from tax year-on-year.
  2. While the Personal Savings Allowance is currently adequate for most savers to avoid paying tax on their savings without using an ISA, should savings rates raise tax may become an issue. 
  3. If the Government were to review the way savings are taxed in the future, the Personal Savings Allowance seems far more vulnerable to change than the more established ISA regime. It would be extremely difficult to justify the removal of tax advantages from money already held in ISAs compared to lowering or even scrapping the Personal Savings Allowance.

 

Receive the latest news, straight to your inbox

All of our newsletters are available free by email to all Moneyfactscompare.co.uk users.

Send me Weekend Moneyfactscompare, Savers Friend, Companies Friend and selected third-party offers.

Which cash ISA to choose?

There is a wide variety of cash ISAs on offer, which mainly mirror the types of account on offer in the traditional savings market.

Easy access cash ISA

Easy access cash ISAs are probably the simplest type of cash ISA, as they allow instant access to your funds. While many easy access ISAs allow unlimited withdrawals, it’s worth noting that some restrict the number of withdrawals that are allowed.

Some easy access ISAs also include a short-term bonus which boosts their rate, usually for 12 months. Once the bonus period expires, it is important to check whether the ISA remains competitive, and potentially transfer your ISA if it does not.

Fixed Rate ISAs

Fixed rate ISAs tend to pay the best interest rates because providers are happy to pay more in return for knowing they will have the funds for a set amount of time. Terms usually range from six months to five years, with the longer the term agreed, the higher the rate of interest that is paid.

However, if the provider allows you to access your fixed rate ISA funds before the term expires, an interest penalty will normally have to be paid and the ISA may be closed.

Regular savings ISA

If you want to put a smaller amount away each month, a regular saving ISA may be for you. In return for promising to put a minimum amount of money away on a regular basis, these accounts often pay a higher amount of interest. It should be noted, however, that missing a month or withdrawing the cash usually means the better rate will be lost.

Notice ISAs

If you are happy to give notice before accessing your ISA funds, notice ISAs tend to pay a higher rate of interest than easy access ISAs. Notice periods vary, but typically range between 30 and 180 days. Interest penalties for earlier withdrawals usually fall in line with the notice period.

Moneyfacts tip Image of Leanne Macardle

Looking to save for a child? Compare the best Junior ISA rates

Who can open a cash ISA?

That ISAs are accessible to almost all has also played a key part in their success. Anyone who is resident in the UK for tax purposes and aged 18 or over is entitled to open an ISA. Crown employees, such as diplomats or members of the armed forces, are eligible too, along with their spouses or civil partners.

How many cash ISAs can I have?

You can hold a cash ISA, a stocks & shares ISA, an innovative finance ISA and a lifetime ISA all in the same tax year.

And, from 6 April 2024, you can open and pay into multiple types of the same ISA within the same tax-year. This doesn't apply to Lifetime ISAs or Junior ISAs.

For example, you can save into two cash ISAs in the same year, as long as the total amount you deposit across all your ISAs doesn't exceed the £20,000 annual ISA allowance.

Related guide: How many ISAs can I have?

 

Can I withdraw cash whenever I like?

This is likely to depend on the type of cash ISA you have and any rules that your ISA provider has for making withdrawals. With easy access cash ISAs, you can usually withdraw your money when you want to. However, with fixed rate cash ISAs, your funds are supposed to be tied up until the end of the fixed term.

In reality, several fixed rate ISAs will allow early access to funds, but an interest penalty will have to be paid. Similarly, while a notice period is meant to be observed if you have a notice ISA, some providers will allow earlier withdrawals on an interest penalty.

If your ISA is ‘flexible’, you can take out money then replace it during the same tax year without reducing your current year’s allowance. It should be noted, however, that ISA providers do not have to offer the ‘flexible ISA’ option, so you should always check with your provider first.

Inheriting cash ISAs

It is now possible for a surviving spouse or civil partner to inherit the ISA savings of a loved one when they die and continue to benefit from the tax-free benefits built up. This can be done using an additional, one-off ISA allowance, equal to the value of the deceased’s ISA holdings.

The ‘additional permitted subscription’ allows the survivor to re-shelter the assets in an ISA in their own name, without encroaching on their own ISA allowance for that tax year. Although inheritance tax (IHT) will still apply, transfers between spouses on death are IHT free.

Find out more about the rules on inheriting ISAs in our guide.

Is my money safe in a cash ISA?

As long as the ISA is provided by a UK regulated bank or building society account, it is protected under the Financial Services Compensation Scheme (FSCS). This means that the first £85,000 of money saved with a particular financial institution is covered should the ISA provider fail.

Image of Ashley Seager

Ashley Seager

Digital Marketing Manager

ISA guides

More guides
guides icon
What is the 2024/25 ISA allowance?
...and how does it work?

Find out the ISA rules and limits for the 2024/25 tax-year, and how they may impact your savings.

Find out the ISA rules and limits for the 2024/25 tax-year, and how they may impact your savings.

Read More
guides icon
What is ISA season and why does it matter for your savings?

ISA season takes place throughout March and April as one tax-year ends and another begins. Find out more about what ISA season means for your savings and when you can access the best ISA rates with our dedicated guide.

ISA season takes place as one tax-year ends and another begins. Find out what ISA season means for your savings and when you can access the best ISA rates..

Read More
guides icon
How to transfer an ISA

Are you looking to move or transfer the funds in your ISA? Find out everything you need to know about ISA transfers with our complete guide.

Are you looking to move or transfer the funds in your ISA? Find out everything you need to know about ISA transfers with our complete guide.

Read More
guides icon
The rules on inheriting ISAs

Did you know that you can inherit your spouse's/civil partner's ISA savings? This guide explains the rules on inheriting ISAs and the important things you need to know.

What you need to know about claiming and investing an inherited ISA, and retaining its tax-free status.

Read More

Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.

Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.