Isa basics: all you need to know
All you need to know about how Isas work, including how much you can pay in, what you can hold, and how to transfer an Isa.


Easy access and notice ISA rates are now at their highest since 2009 as providers look to bring in new customers ahead of the new tax year.
The average easy-access ISA rate stands at 1.96%, according to Moneyfacts, and some easy access accounts are offering as much as 3.2%.
The Bank of England’s latest interest rise means providers are not holding back when it comes to increasing these rates - which is good news for savers looking to park their cash into the tax free wrapper.
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While MW readers know too well a stocks and shares ISA may serve you well for long-term savings, for anyone looking to hold on to cash for the short-term or held back by the market volatility, a cash ISA may make good sense.
You can also park your cash within your investment ISA, but MoneyWeek recently revealed that interest rates on these platforms can be dismal, so grabbing a higher rate on cash ISA can be a good idea if you have yet to make use of this year’s £20,000 allowance.
To help you, we have rounded up the best cash ISA rates on the market today.
The best cash ISAs: easy access
Easy access cash ISAs do what they say on the tin, letting you access your savings without penalty.
Account
AER
Minimum investment
Flexible Isa?
Notes
Cynergy Bank Online ISA3.62%£1NOnline account
Leeds Building Society3.55%£1,000Y
Open online. If the balance falls below £1,000 the interest rate falls to 0.05%. |
Marcus by Goldman Sachs3.50%£1N
Open online or in-app. |
Shawbrook Bank Easy Access Cash ISA3.45%£1,000NOpen online.
Charter Savings Bank Easy Access Cash ISA
3.25%
£5,000
Y
Open Online
The best cash ISAs: one-year fixed rate
If you’re happy to lock your cash away without any withdrawals for a year, then you can earn a higher rate – in most cases, you’ll also need at least £1,000 to open these ISAs. Here are the best one-year fixed-rate ISAs available now.
Account
AER
Minimum investment
Notes
Paragon 1 Year Fixed Cash ISA4.40%£500Open online or by post
Natwest 1 Year Fixed ISA4.40%£1,000
Open online, by phone or in branch |
UBL 1 Year Fixed Cash ISA4.35%£2,000Open online, by post or in branch
Virgin Money 1 Year Fixed ISA4.33%£1
Open online |
Shawbrook 1 Year Fixed Cash ISA4.32%£1,000Open online
Close Brother Savings 1 Year Fixed Rate Cash ISA4.32%£10,000
Open online or by post. |
The best cash ISAs: two-year fixed rate
If you have savings you’re happy to lock away for at least two years, you’ll find rates on cash ISAs above 4%.
Account
AER
Minimum investment
Notes
Natwest 2 Year Fixed ISA4.50%£1,000Open online, by phone or in branchVirgin Money 2 Year Fixed ISA4.40%£1Open onlineNewcastle Building Society 2 Year Fixed Cash ISA4.40%£500Open online or in branch.
Shawbrook 2 Year Fixed Cash ISA4.40%£1,000
Open online. |
Close Brother Savings 2 Year Fixed Rate Cash ISA4.40%£10,000Open online.
The best cash ISAs: three-year fixed rate
Account | AER | Minimum investment | Notes |
Virgin Money 3 Year Fixed ISA | 4.41% | £1 | Open online |
Shawbrook 3 Year Fixed Cash ISA | 4.37% | £1,000 | Open online |
Secure Trust Bank 3 Year Fixed Cash ISA | 4.35% | £1,000 | Open online |
Leeds Building Society 3 Year Fixed ISA | 4.25% | £100 | Open online, by post or in branch |
Gatehouse Bank 3 Year Fixed Term Woodland Cash ISA | 4.20% | £1,000 | Open online |
What you need to know about the best cash ISAs
When choosing a cash ISA there are two main factors to look out for: how long you are comfortable locking your cash up for and the interest rate.
- Easy access ISA accounts allow you to withdraw funds without incurring a penalty.
- Fixed-rate cash ISAs offer a fixed rate of return – usually higher the longer you are prepared to lock your money away. But note: if you withdraw money before the end of the term, then you are likely to be penalised, usually with a reduction in the rate of interest.
Generally speaking, the longer you leave the money untouched, the more interest you can earn. Many ISAs are classed as ‘flexible’, meaning you can replace any funds you withdraw in the same tax year without affecting your annual ISA allowance – which is currently £20,000.
Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.
He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.
Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.
As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.
Follow Matthew on Twitter: @DrMatthewPartri
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