6 of the best variable cash ISAs - ISAs - News - Moneyfacts

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6 of the best variable cash ISAs

6 of the best variable cash ISAs

Category: ISAs

Updated: 07/11/2016
First Published: 03/11/2016

ISAs may have been hit hard by persistent rate cuts of late, but these accounts remain a viable place to put your cash, even with the personal savings allowance in full swing. Here are the top six.

Opting for fixed rate ISAs is all well and good, but sometimes you want to keep your cash accessible. Variable rate ISAs can offer that kind of flexibility – you're not tied into a fixed rate deal but instead have the freedom to add to your savings pot and access your cash should you wish, ensuring you don't have to keep your money locked away for too long.

It's worth bearing in mind that if you want the best rates you'll often have to give a bit of notice to make that all-important withdrawal, but that could be a small price to pay for such a good return. You'll also find that the providers offering the best rates tend to be building societies or challenger banks, but don't let that put you off! Challenger banks are easily giving high street names a run for their money, so why not give them a go?

To help you decide, we've outlined the top six variable cash ISAs currently available. Some of them offer instant access, whereas others require a bit of notice to withdraw your cash, but either way, you won't have to wait long to get your hands on your money.


AER Details

Al Rayan Bank
Notice Cash ISA
1.55% AER
  • 120-day notice account
  • Minimum investment of £250
  • Transfers in and further additions allowed
  • Withdrawals permitted subject to 120 days' notice (no earlier access)
  • Transfers out on 120 days' notice or loss
  • Account can be managed in branch, by post, by phone, online and by smartphone app
  • Interest paid monthly and must be compounded
  • Sharia'a compliant account

Taking the top spot is this deal from Al Rayan Bank, paying an indicative profit rate of 1.55% AER to those willing to give 120 days' notice to access their funds. This account welcomes further additions at any time and permits unlimited withdrawals, subject to the required notice period being given, and can be managed via all channels for the height of flexibility.


AER Details

Coventry BS
Easy Access ISA (4)
1.10% AER
  • Instant access account
  • £1 minimum deposit
  • Further additions permitted
  • Transfers in accepted from the current tax year (cash ISAs only)
  • Unlimited withdrawals and no penalty for transfers out
  • Account can be managed in branch, by post, by phone and online
  • Interest paid yearly

In second place is this instant access deal from Coventry BS, an entirely restriction-free account that offers the height of flexibility – unlimited withdrawals and further additions are permitted, as are penalty-free transfers away from the account, all from a minimum investment of just £1. It can be managed via all key channels, too, giving savers easy access from every angle.


AER Details

Holmesdale BS
Cash ISA 90 (Issue 2)
1.10% AER
  • 90-day notice account
  • £500 minimum deposit
  • Tiered rates of interest depending on the balance: 0.75% paid at £500, 1% at £8,000 and 1.10% at £15,000
  • Further additions permitted (no transfers in)
  • Withdrawals permitted subject to 90 days' notice. One no-notice withdrawal is also permitted per calendar year
  • Transfers out on 90 days' notice
  • Account can be opened in branch or by post, then managed in the same way as well as online
  • Interest paid yearly

Securing a top-three position is this account from Holmesdale BS, a notice deal which permits unlimited further additions and withdrawals, subject to the required notice period, and it even offers one notice-free withdrawal per year should an emergency arise. It should be noted that the headline rate will only be paid on balances of £15,000 and above, but for those who can invest the full 2016/17 ISA allowance, it could be a highly competitive choice.


AER Details

Darlington BS
Cash ISA Issue 2
1.05% AER
  • Instant access account
  • £1 minimum deposit
  • Further additions and transfers in accepted
  • Unlimited withdrawals and no penalty for transfers out
  • Account can be managed in branch or by post
  • Interest paid yearly

Next up is this simple, straightforward account from Darlington BS. It's a true easy access deal that offers plenty of flexibility, with unlimited withdrawals, transfers and further additions permitted with no notice or restriction. All that from a minimum deposit of just £1, and with a variable rate of 1.05%, it comfortably makes the charts.


AER Details

Kent Reliance
60 Day Notice ISA Issue 14
1.05% AER
  • 60-day notice account
  • £1,000 minimum deposit
  • Further additions permitted
  • Transfers in allowed (requests must be made within 30 days of account opening)
  • Withdrawals and transfers out subject to 60 days' notice
  • Earlier access on 60 days' loss
  • Account can be opened in branch, by post or online, then managed in the same way as well as by phone
  • Interest paid yearly

Sitting comfortably in the top five is this deal from Kent Reliance, a notice account that pays 1.05% AER to those willing to give 60 days' notice to access their funds. Further additions are welcome at any time, and early access is also possible, subject to the loss of 60 days' interest.


AER Details

NS&I
Direct ISA
1.00% AER
  • No notice account
  • £1 minimum deposit
  • Further additions permitted
  • No transfers in
  • Unlimited withdrawals and no penalty for transfers out (all withdrawals must be made via a nominated account)
  • Account can be managed online and by phone
  • Interest paid yearly

Just squeezing into the top six is this no notice deal from NS&I, the perfect choice for those who want the security of Government backing. It offers unlimited withdrawals and further additions, as well as penalty-free transfers away from the account, and all it requires is an investment of just £1.

Information & Rates correct as at: 03.11.2016

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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