Compare Cash ISAs

What is a cash ISA?

Cash ISAs are savings accounts that pay interest on your money without deducting tax.

For basic tax payers investing in an ISA could increase the interest return on your savings by 20% while this figure increases to 40% for those taxed at a higher rate.

There are a huge number of fixed rate and instant access options available so, just like regular savings accounts, you can find a Cash ISA that works with the way you use your money.

Who can save?

Cash ISAs are available to all UK residents over the age of 16. Crown employees working overseas but paid by the government (such as members of the armed forces) and their husbands, wives or civil partners are also able to take advantage of the tax free savings opportunities that ISAs provide.

How much can I save?

You can invest up to £3,600 in a Cash ISA every tax year (this increased from £3,000 on 6th April, 2008). However, you are only allowed to pay into one Cash ISA per tax year even though you can contribute to different Cash ISAs in different tax years.

Prior to the 6th April, 2008, Cash ISAs were available either as Mini Cash ISA accounts, or as cash components of Maxi ISAs. However, to make tax free savings more accessible the Mini/Maxi distinction has now been scrapped and all existing Mini Cash ISAs, TESSA-only ISAs and cash components of Maxi ISAs’ are now simply referred to as ‘Cash ISAs’.

Can I access money in a Cash ISA?

Yes, just as with other savings accounts, if you have an instant access ISA you will be able to withdraw money whenever you need to. Fixed rate Cash ISAs on the other hand tend to restrict your access for an agreed period with an interest penalty imposed for early withdrawal.

However, it’s worth bearing in mind that irrespective of the type of Cash ISA account you hold, you will only able to pay in a maximum of £3,600 per financial year no matter how much you withdraw. For example, if you start the tax year by paying in the full £3,600 but later withdraw £600, despite the fact that you now only hold £3,000 in your Cash ISA, you will not be able to pay in any more until the next financial year as you have already used your full £3,600 allowance.