With the 2025/26 tax year well underway, everyone in the UK aged 18 or more gets a £20,000 tax-free ISA allowance.
The best cash ISAs are currently returning inflation-busting rates of up to 5.46%. However, the Bank of England's interest rate cut means that rates on savings accounts could soon drop.
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 |
|---|---|---|---|---|
5.46% - includes a 1.51% bonus for 3 months | £500 | No | Open online. Interest must be compounded. | |
4.82% - includes a 0.73% bonus for 12 months | £1 | Yes | Open online. Interest must be compounded. | |
4.85% - includes a 1.54% bonus for 3 months | £1 (3.29% rate, 4.85% rate paid at £100) | No | Open via mobile. 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 |
|---|---|---|---|
4.27% | £1 | Open online. Interest can be paid away or compounded. | |
4.26% | £1,000 | Open online. Interest can be paid away or compounded. | |
4.26% | £1,000 | Open online or in person. Interest can be paid away or compounded. |
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 of up to 4.18%.
Account | AER | Minimum investment | Notes |
|---|---|---|---|
4.18% | £5,000 | Open online. Interest can be paid away or compounded. | |
4.17% | £1,000 | Open online. Interest can be paid away or compounded. | |
4.17% | £1,000 | Open online or over the phone. Interest must be compounded. |
The best cash ISAs: three-year fixed rate
Account | AER | Minimum investment | Notes |
|---|---|---|---|
4.18% | £5,000 | Open online. Interest can be paid away or compounded. | |
4.17% | £10,000 | Open online. Interest must be compounded. | |
4.17% | £2,000 | Open online, in person or via post. Interest must be paid away. |
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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