The best cash Isas – March 2023
Easy access and notice ISA rates are now at their highest since 2009. Here are the best cash ISAs on the market today.
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 Moneyfactscompare, 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.
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.
|Cynergy Bank Online ISA||3.20%||£1||N||Online account|
|Santander eISA||3.20%||£500||Y||Open online or in branch. After 12 months it switches to ISA Saver, which pays 0.6%.|
|Shawbrook Easy Access Isa||3.17%||£1,000||N||Online account|
|Principality Building Society Online ISA||3.10%||£1||Yes||Online account|
Online or in branch. Only available to Virgin Money current account holders
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.
|Santander 1 Year Fixed Rate ISA||4.15%||£500||Open online or in branch.|
|Virgin Money 1 Year Fixed Rate Cash ISA||4.11%||£1||Open online.|
|Gatehouse Bank 1 Year Fixed Term Woodland Cash ISA||4.10%||£1,000||Open online.|
|Charter Savings Bank 1 Year Fixed Cash ISA||4.01%||£5,000||Transfers allowed only at the time of opening the account. Open online.|
Open the account online. If you withdraw before the end of term there is a withdrawal charge equivalent to 90 days gross interest.
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%.
|Gatehouse Bank 2 Year Fixed Term Woodland Cash ISA||4.20%||£1,000||Open online|
|Santander 2 Year Fixed Rate ISA||4.20||£500||Open online or in branch.|
The best cash ISAs: three-year fixed rate
Open online or by post.
|Gatehouse Bank 3 Year Fixed Term Woodland Cash ISA||4.20%||£1,000||Open online|
|Aldermore 3 Year Fixed Rate Cash ISA||4.15%||£1,000||Open online|
|Paragon Bank 3 Year Fixed Rate Cash ISA||4.15%||£500||Open online or by post|
Open online, by post or in branch
Open online, by post or in branch
|State Bank of India 3 Year Fixed ISA||4.10%||£5,000||Open in branch|
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.
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