The best cash Isas – November 2022

Cash Isas may be making a comeback as rates creep up – here are the best cash Isas on the market today.

If you’re hoping to take advantage of higher interest rates coming back to the cash savings market, then you may be looking for one of the best cash ISAs to grow your money.

The best cash ISAs on the market today now offer rates of up to 4.3%, though you’ll need to be prepared to lock your money away for two years. It may also be possible to earn an even higher rate if you’re prepared to lock your money away for longer. 

While it might be tempting to lock in these high rates now, it looks as if the Bank of England will be raising interest rates further over the coming months. So, a cash ISA with unlimited withdrawals might be a good option – allowing you to switch to a higher rate if one comes along in the future.

Cash ISAs operate in the same way as an ordinary savings account, but you don’t get charged tax on any interest you earn. You can save up to £20,000 a year in one type of account or split that allowance across different types of ISA accounts – such as a stocks and shares ISA. A stocks and shares ISA may be a good option if you want to save for a longer period – five years or more. 

Some ISA accounts are also what’s known as “flexible ISAs”. This means you can withdraw money from your account and put it back in the same tax year without it affecting your annual allowance.

Below are the best cash ISA accounts available for easy access, and for 12- and 24-month fixed-rate accounts.

The best cash ISAs: easy access

Easy access cash ISAs do what they say on the tin, letting you access your savings without penalty.

Virgin Money Easy Access Cash ISA Exclusive – 3%

  • Open with £1
  • Only available to Virgin Money current account holders
  • This is a flexible Isa

Barclays 1 Year Flexible Cash ISA – 2.85%

  • 2.85% Fixed for one year but only allows up to 3 withdrawals 
  • Withdrawals can only be up to 10% of the balance in the account

Ecology Building Society Cash ISA – 2.70% 

  • Open with £25
  • Open and manage account online or by post

Cumberland Building Society Instant Cash ISA – 2.55%

  • Open with £1
  • Only eligible if you are a Cumberland Building Society current account holder
  • Open and manage online or in a branch 

Principality Building Society Online ISA – 2.50% 

  • Open with £1
  • Online account

Paragon Triple Access ISA - 2.30%

  • Open with £1
  • Withdrawals limited to 3 times a year
  • Rate drops to 0.75% if you make more than 3 withdrawals

Vernon Regular Saver ISA - 2.30% 

  • You can open this account with a deposit of just £25 and save between £25 and £500 a month
  • Interest of 2.30% is available on balances up to £25,000 and 1.50% on balances of more than £25,000 
  • This account is particularly attractive for first-time buyers as Vernon will add “an amount equivalent to 10% of the capital balance in your account when you complete a mortgage with us.” The maximum bonus available is £1,000 and only applies to first time buyers
  • Only two withdrawals are allowed per year and the account can only be opened and managed in branch

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.

Cumberland Building Society 1 Year Fixed ISA - 4.25%

  • To open the account you have to be in their operating area (Cumbria (CA and LA postcodes), South-West Scotland (DG and TD9), West Northumberland (NE45-49), North Lancashire (PR, FY, LA AND BB1-3 and BB5-7) and North Yorkshire)
  • Can only be opened in branch 
  • Open with £1,000

Castle Trust Bank 1 Year Fixed ISA - 3.97% 

  • Savers can open this account with a deposit of £1,000.
  • Funds cannot be withdrawn during the term, although the provider will consider special circumstances (a fee might apply as well).
  • Castle Trust promises to increase the rate on the account at any point within the first 14 days of opening if it decides to raise the rate on new products. 

OakNorth Bank 1 Year Fixed ISA - 3.68%

  • Savers can open this account with just £1 online.
  • The rate is 3.68% although there's a 0.02% loyalty bonus for savers who reinvest with OakNorth after another fixed product expires. 

Cynergy Bank Loyalty 1 Year Fixed ISA - 3.60%

  • Only available to customers who’ve been with Cynergy Bank for at least 6 months. New customers can only earn 3.6%.
  • The minimum required to open the account is £500 with a minimum subsequent deposit minimum of £100. 
  • Online account

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%.

Cumberland Building Society 2 Year Fixed ISA – 4.75% 

  • Have to open in branch 
  • To open the account you must live in the society’s operating area (Cumbria (CA and LA postcodes), southwest Scotland (DG and TD9), West Northumberland (NE45-49), North Lancashire (PR, FY, LA and BB1-3 and BB5-7) and North Yorkshire)
  • Open with £1,000

State Bank of India 2 Year Fixed ISA  4.65%

  • You need a minimum deposit of £5,000 to open the account
  • No partial withdrawals are allowed and if the account is closed before the end of the first year no interest will be paid
  • The account can be opened online, in branch or by post 

Saffron Building Society 2 Year Fixed Cash ISA Exclusive – 4.40%

  • Open and manage by post or in a branch 
  • Open with £500
  • To be eligible, you have to be an existing customer who is opening this account with money from a maturing fixed term account which is held with Saffron Building Society. 

Charter Savings Bank 2 Year Fixed ISA – 4.38% 

  • Savers need £5,000 to open this account.
  • The account can be managed online
  • There's a charge of 180 days of interest for early withdrawals. 

Saffron Building Society 2 Year Fixed Cash ISA  – 4.35%

  • Savers need £500 to open this account.
  • The account must be managed via post or in a branch
  • There's a charge of 180 days of interest for early withdrawals.

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.

Recommended

Scottish Mortgage managers reassure investors about its recent poor performance
Investment trusts

Scottish Mortgage managers reassure investors about its recent poor performance

After a spectacular couple of decades, the Scottish Mortgage Investment Trust has fallen by 40% this year. As its managers address shareholder concern…
5 Dec 2022
State pension errors – why tens of thousands of mothers could be missing out on millions in state pension payments
State pensions

State pension errors – why tens of thousands of mothers could be missing out on millions in state pension payments

LCP launches Mothers Missing Millions campaign amid DWP state pension errors.
3 Dec 2022
The top funds to invest in now
Funds

The top funds to invest in now

As market volatility continues, here are the top funds, stocks and investment trusts investors are putting their money into, according to one investme…
2 Dec 2022
The best places to live in the UK – and how much they will cost you
House prices

The best places to live in the UK – and how much they will cost you

Thinking of moving? Here are the best places to live in the UK and how much they will cost if you are buying.
2 Dec 2022

Most Popular

Is it cheaper to leave the heating on low all day?
Personal finance

Is it cheaper to leave the heating on low all day?

The weather is getting colder and energy bills are rising, but is it really cheaper to leave the heating on low all day or should you only turn it on …
1 Dec 2022
Radiator vs electric heater – which is cheaper?
Personal finance

Radiator vs electric heater – which is cheaper?

We compare the costs, pros and cons of radiators and electric heaters and see which one will help keep your energy bill as low as possible.
28 Nov 2022
State pension errors – why tens of thousands of mothers could be missing out on millions in state pension payments
State pensions

State pension errors – why tens of thousands of mothers could be missing out on millions in state pension payments

LCP launches Mothers Missing Millions campaign amid DWP state pension errors.
3 Dec 2022