Daniel Hilton
The rates on many of the best cash ISAs have disappeared alongside savings accounts after the Bank of England cut interest rates.
Savers could also face a £4,000 limit on deposits into this type of ISA from chancellor Rachel Reeves to encourage investment in UK stocks instead.
The good news is that some cash ISAs are still returning inflation-busting rates, so it's worth checking if you're making full use of your £20,000 ISA allowance.
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A stocks and shares ISA is a good option for long-term savings, but a cash ISA may make good sense for short-term savings. If you want to fix your cash away for tax-free gains, a fixed rate cash ISA can be a good option.
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 |
5.38% | £500 | N | |
5.37% | £1 | Y | |
5.36% | £100 | N | |
5.01% | £1 | Y |
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 | Row 0 - Cell 4 |
4.52% | £1,000 | Open online | Row 1 - Cell 4 | |
4.51% | £5,000 | Open online | Row 2 - Cell 4 | |
4.51% | £1,000 | Open online | Row 3 - Cell 4 |
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 |
4.45% | £5,000 | Open online | |
4.44% | £500 | Open online | |
4.42% | £1,000 | Open online |
The best cash ISAs: three-year fixed rate
Account | AER | Minimum investment | Notes |
4.43% | £500 | Open online | |
4.43% | £10,000 | Open online | |
4.41% | £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. 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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