As the new tax year of 2025-26 begins, everyone in the UK aged 18 or more gets a £20,000 tax-free ISA allowance.
Despite falling rates on savings accounts after the Bank of England's interest rate cut in February, the best cash ISAs are returning inflation-busting rates of up to 5.92%.
Unsure which ISA is best for you? A stocks and shares ISA is a good option for long-term savings, but a cash ISA may make good sense in the short term.
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For those who want to lock in their cash for a set time, a fixed rate cash ISA is a good place to start.
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 |
|---|---|---|---|---|
Plum Plum Cash ISA | 5.92% - includes a 2.38% bonus for 3 months, paid at £100 | £1 (2.38% rate, 5.92% rate paid at £100) | No | Open via mobile. Interest must be compounded. |
Chip Chip Cash ISA | 5.9% - includes a 1.58% bonus for 3 months | £1 | Yes | Open via mobile and enter the code CHIPCASHISA for the boosted rate. Interest must be compounded. |
Moneybox Moneybox Cash ISA | 5.67% - includes a 1.47% bonus for 3 months | £500 | No | Interest must be compounded. |
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're guaranteed that return for one year until your fixed term ends.
Account | AER | Minimum investment | Notes |
|---|---|---|---|
UBL UK 1 Year Fixed Rate Cash ISA | 4.53% | £2,000 | Interest must be paid away. |
Vanquis Bank 1 Year Fixed Rate Cash ISA | 4.42% | £1,000 | Open online. Interest can be paid away or compounded. |
United Trust Bank Cash ISA 1 Year Bond | 4.41% | £5,000 | Open online. |
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 in the 4% region.
Account | AER | Minimum investment | Notes |
|---|---|---|---|
Chetwood Bank HL Active Savings - 2 Year Fixed Rate Cash ISA | 4.46% | £1,000 | Open online. Interest must be compounded. |
Furness Building Society 2 Year Fixed Rate ISA | 4.45% | £1,000 | Interest can be paid away or compounded. |
United Trust Bank Cash ISA 2 Year Bond | 4.38% | £5,000 | Open online. Interest can be paid away or compounded. |
The best cash ISAs: three-year fixed rate
Account | AER | Minimum investment | Notes |
|---|---|---|---|
UBL UK 3 Year Fixed Rate Cash ISA | 4.34% | £2,000 | Interest must be paid away. |
Chetwood Bank HL Active Savings - 3 Year Fixed Rate Cash ISA | 4.30% | £1,000 | Open online. Interest must be compounded. |
Darlington BS 3 Year Fixed Rate Cash ISA | 4.30% | £10,000 | Open online. Interest can be paid away or compounded. |
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. 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.
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