Find our best cash ISA rates

Earn interest tax free with our best cash ISA rates up to 5.2%

View the different types of cash ISA available and then compare our best ISA rates to find the right account for you.

Compare our best cash ISAs

See interest rates, terms and more when you compare cash ISA rates
ParagonMarcus by Goldman SachsNatWestLeeds Building SocietyMoneyboxSkiptonParagonMarcus by Goldman SachsNatWestLeeds Building SocietyMoneyboxSkipton
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Last updated
November 24, 2023

Today's best cash ISA rates

Here are the highest interest rates for a range of cash ISAs available in the UK market. Be aware that the best ISAs with the highest interest rates may often be further down the comparison table. This list is updated daily.
Product typeAER
Instant Access Cash ISAs5.11%
Notice Cash ISAs5.30%
1 Year Fixed Cash ISAs5.71%
2 Year Fixed Cash ISAs5.15%
3 Year Fixed Cash ISAs4.86%

What is a cash ISA?

A cash ISA (Individual Savings Account) is a savings product with special tax benefits. ISAs were introduced more than 20 years ago by the government, with the goal of getting more people to save.

With a cash ISA, you can earn interest on your savings, but you don't have to pay any tax on the returns you make.

Any UK resident aged 16 or over can open a cash ISA. If your child is under 16, they can't open an adult ISA, you have to open a junior cash ISA for them instead.

Money held in cash ISAs[1]
£281billion
Due to higher interest rates, ISAs have a new lease of life and its £20,000 tax-free allowance is more attractive to savers who want to maximise their earned interest.

How to choose the best cash ISA

To choose the best cash ISA for your needs, you must consider what the money is for, when you think you might need it, and how much flexibility you want over access. These are some of the main factors to consider:

Interest rate

The higher your interest rate, the more money you will make on your savings. However, getting the very highest rate usually means locking your money away for longer or agreeing to give notice before making a withdrawal.

Withdrawal limit

Some accounts limit the number of withdrawals you can make each year or cut the interest rate if you access your cash too often. This can mean better returns on your savings, but only if you don’t need the money. Easy access ISAs pay less interest but allow you to withdraw whatever you need.

Term length

If you choose a fixed rate ISA, you’ll have a guaranteed interest rate for a set period. The rates on offer can vary widely, and often depend on how long you lock the money away, so it’s worth shopping around for the best deal.

Flexibility

Some accounts allow you to withdraw money you’ve saved in the same year, without it counting towards your ISA allowance. Other accounts say that money is part of your allowance even though you’ve both paid it in and taken it out in the same financial year.

Eligibility and access

Some providers save their best rates for existing customers, so check what your account providers offer. You should also check out how easy the account is to manage – for instance, is there an app and can you use it to add cash funds.

Minimum deposit

Plenty of ISAs will allow you to start saving from just £1, but some impose a higher minimum deposit. There are even regular saver accounts that will pay you higher interest if you commit to saving a certain amount each month.

Charges and penalties

If you have a fixed rate ISA and you want to withdraw your money before the term is up, you’ll probably face an interest penalty or charges. Equally, some providers will charge you exit fees if you transfer your ISA elsewhere. Check the small print before signing up.

Why should you get a cash ISA?

Cash ISAs are attractive to savers because you never pay tax on the interest you earn. However, everyone has a personal savings allowance from the government that entitles them to a certain amount of interest tax free. 

So, as non-ISA accounts tend to pay better interest than their ISA counterparts, a cash ISA is best for someone who is already paying tax on their savings interest or near the limit of the personal savings allowance.

If you are a basic rate taxpayer (20%), you can earn up to £1,000 in interest without paying tax, while higher taxpayers (40%) have an allowance of £500. This means that most people won't be paying tax on interest from normal savings accounts anyway. However, additional rate taxpayers don’t have a personal savings allowance at all.

Our best instant access cash ISAs

Our editors pick these deals by weighing several factors for each product, including the interest rate, term, withdrawal conditions, minimum opening balance and more.

Editor’s pick
Moneybox Cash ISA
Card
Moneybox Cash ISA
Open with
£500
Interest rate
5.09% AER variable inc. 0.94% fixed bonus for 12 months
Term
Easy access

Rate drops to 4.15% after first 12 months. Subject to T&Cs. A lower interest rate of 0.75% AER (variable) applies whenever your account balance is less than £500. It also applies for the rest of your current 12-month period from your fourth withdrawal. The number of withdrawals permitted will reset on the anniversary of the account opening date

Show Details
Eligibility
Maximum Age
Unlimited
Minimum Initial Deposit
£500
Permanent UK Resident
YES
Rate Tiers
Gross rate
Including bonusExcluding bonus
5.09%4.15%
AER rate
Including bonusExcluding bonus
4.15%5.09%

If you are looking for a cash ISA, this one is worth a look. It has a competitive interest rate at 5.09% AER variable inc. 0.94% fixed bonus for 12 months and you only need a balance of £500 to open it. But, bear in mind that you only have three withdrawals per year, as on the fourth withdrawal you'll receive a lower interest rate.

Author image
savings expert
Editor’s pick
Marcus by Goldman Sachs Cash ISA
Card
Marcus by Goldman Sachs Cash ISA
Open with
£1
Interest rate
4.75% AER variable
Term
Instant access

No notice, penalty, or charge applies.

Show Details
Eligibility
Maximum Age
Unlimited
Minimum Initial Deposit
£1
Permanent UK Resident
YES
Rate Tiers
Gross rate
Including bonusExcluding bonus
4.65%4.15%
AER rate
Including bonusExcluding bonus
4.24%4.75%

This ISA can be managed online but it's not a flexible ISA, so any withdrawals will still count towards your annual ISA allowance. Interest is also calculated daily and paid monthly, so you’ll see how much extra you are earning each month.

Author image
savings expert
Editor’s pick
Paragon Triple Access ISA (Issue 14)
Card
Paragon Triple Access ISA (Issue 14)
Open with
£1
Interest rate
4.25% AER variable
Term
Easy access

If more than 3 withdrawals are made in a 12 month period, the rate payable will drop from the date of the 4th withdrawal, with the 12 month period resetting on the anniversary of the account opening date.

Show Details
Eligibility
Maximum Age
Unlimited
Minimum Initial Deposit
£1
Permanent UK Resident
YES
Rate Tiers
Gross rate
Including bonusExcluding bonus
4.25%1.5%
AER rate
Including bonusExcluding bonus
1.5%4.25%

This cash ISA allows you to start saving tax free and you only need £1 to open the account. There are also unlimited withdrawals up to £500,000 and you can have three withdrawals every 12 months without impacting the competitive interest rate.

Author image
savings expert

Our best fixed-rate cash ISAs

Our editors pick these deals by weighing up factors such as the interest rate, term, withdrawal conditions, and minimum opening balance for each product.

Editor’s pick
Paragon 5 Year Fixed Rate ISA
Card
Paragon 5 Year Fixed Rate ISA
Open with
£500
Interest rate
4.4% AER fixed
Term
5 years

Withdrawals and closure are permitted subject to 365 days interest penalty.

Show Details
Eligibility
Maximum Age
Unlimited
Minimum Initial Deposit
£500
Permanent UK Resident
YES
Rate Tiers
Gross rate
Including bonusExcluding bonus
4.4%4.4%
AER rate
Including bonusExcluding bonus
4.4%4.4%

At 4.4% AER fixed this 5 year cash ISA doesn't offer the most competive rate, but given that it's fixed for 5 years means you could be better off if the base rate were to be cut in the next couple of years and interest rates dropped. You can open it with £500 and early withrdrawal will cost you a year's worth of interest.

Author image
Senior Personal Finance Editor
Editor’s pick
Leeds Building Society 1 Year Fixed Rate ISA Issue 194
Card
Leeds Building Society 1 Year Fixed Rate ISA Issue 194
Open with
£100
Interest rate
5.05% AER fixed
Term
05 Jan 2025

Withdrawals are subject to 60 days loss of interest.

Show Details
Eligibility
Maximum Age
Unlimited
Minimum Initial Deposit
£100
Permanent UK Resident
YES
Rate Tiers
Gross rate
Including bonusExcluding bonus
5.05%5.05%
AER rate
Including bonusExcluding bonus
5.05%5.05%

This 1 year fixed rate ISA offers a market competitive interest. Open with £100, but early withdrawals are subject to 60 days loss of interest.

Author image
Senior Personal Finance Editor
Editor’s pick
Leeds Building Society 2 Year Fixed Rate ISA Issue 188
Card
Leeds Building Society 2 Year Fixed Rate ISA Issue 188
Open with
£100
Interest rate
5.1% AER fixed
Term
04 Jan 2026

Withdrawals are subject to 150 days loss of interest.

Show Details
Eligibility
Maximum Age
Unlimited
Minimum Initial Deposit
£100
Permanent UK Resident
YES
Rate Tiers
Gross rate
Including bonusExcluding bonus
5.1%5.1%
AER rate
Including bonusExcluding bonus
5.1%5.1%

This 2 year fixed rate ISA can be opened with just £100. But withdrawing early will lose you 150 days of interest.

Author image
Senior Personal Finance Editor
fscs-logo
Is my money safe?
The Financial Services Compensation Scheme (FSCS) guarantees that the first £85,000 you have saved with a registered bank or building society (or the first £170,000 for a joint account) will be safe even if the business goes bust.

Three things you need to know about cash ISAs

A cash ISA works exactly the same way as a standard savings account - with three exceptions.

  • You can only generally pay into one cash ISA in any given financial year - although that doesn't have to be the same product as last year.

  • You can only pay in £20,000 per person each year - although you can transfer as much as you like from one ISA provider to another, as long as the account provider allows transfers in. This limit is the total you can invest in all different kinds of ISAs. So, if you have a cash ISA and a stocks and shares ISA, you will need to split the limit between them.

  • All the money you make in interest is tax free.

Cash ISAs work on the tax year, not the calendar year – so your allowance resets on April 6, not January 1.”

What are the different types of cash ISAs?

Easy access cash ISAs

Easy access cash ISAs

These accounts let you withdraw and deposit money whenever you like without any penalties. Easy access ISAs typically have the lowest interest rates and are best for short-term or emergency savings.

Notice cash ISA

Notice cash ISA

With a notice ISA, you will need to give notice to withdraw money from your account or you will be penalised via loss of interest or a charge. The notice period varies between accounts but could be up to 180 days. These accounts tend to pay better interest than easy-access ISAs.

Fixed-rate cash ISA

Fixed-rate cash ISA

Fixed-rate ISAs give you a good interest rate in exchange for you keeping your money locked away for a specific length of time, usually between one and five years. Generally, the interest rates are higher the longer the term of the deal, but this isn’t always true so be sure to shop around.

Lifetime cash ISA

Lifetime cash ISA

Lifetime ISAs are designed to help people under the age of 40 to save for their first home or towards retirement. The maximum annual deposit is £4,000 each year, to which the government adds a 25% bonus.

Junior cash ISA

Junior cash ISA

Junior cash ISAs allow you to save for your child’s future, as long as he or she is under 18 and living in the UK. The money in the account can be withdrawn by the child once they reach 18 years of age.

Regular saver cash ISA

Regular saver cash ISA

These accounts generally pay a higher rate of interest that’s fixed for a set period – say 12 months. To qualify, you must agree to pay in a certain amount each month, often between around £25 and £250.

What are the different types of cash ISAs?

Easy access cash ISAs

Easy access cash ISAs

These accounts let you withdraw and deposit money whenever you like without any penalties. Easy access ISAs typically have the lowest interest rates and are best for short-term or emergency savings.

Notice cash ISA

Notice cash ISA

With a notice ISA, you will need to give notice to withdraw money from your account or you will be penalised via loss of interest or a charge. The notice period varies between accounts but could be up to 180 days. These accounts tend to pay better interest than easy-access ISAs.

Fixed-rate cash ISA

Fixed-rate cash ISA

Fixed-rate ISAs give you a good interest rate in exchange for you keeping your money locked away for a specific length of time, usually between one and five years. Generally, the interest rates are higher the longer the term of the deal, but this isn’t always true so be sure to shop around.

Lifetime cash ISA

Lifetime cash ISA

Lifetime ISAs are designed to help people under the age of 40 to save for their first home or towards retirement. The maximum annual deposit is £4,000 each year, to which the government adds a 25% bonus.

Junior cash ISA

Junior cash ISA

Junior cash ISAs allow you to save for your child’s future, as long as he or she is under 18 and living in the UK. The money in the account can be withdrawn by the child once they reach 18 years of age.

Regular saver cash ISA

Regular saver cash ISA

These accounts generally pay a higher rate of interest that’s fixed for a set period – say 12 months. To qualify, you must agree to pay in a certain amount each month, often between around £25 and £250.

Pros and cons

Pros

Cash ISAs are tax free, so you get to keep all the interest you earn
Many cash ISAs allow you to access your money for any reason
Your money's protected by the Financial Services Compensation Scheme (FSCS), up to £85,000

Cons

You can only save up to your ISA allowance and into one cash ISA account per tax year
You may not always be able to access your money instantly
Even the best cash ISA interest rates are generally still lower than inflation

What are the alternatives to a cash ISA?

There are many alternatives to a cash ISA, but where to save for the best returns depends on what you want to do with your money and when you need access to it. Here are some of the main options:

  • Stocks and shares ISAs - these let you put money into shares and other investments without paying income tax or capital gains tax on the growth. Returns could be far higher than with a cash ISA, but the value of your money could also fall if your investments perform poorly. Stocks and shares ISAs are best for long-term savings, so you can ride out any volatility.

  • Standard savings accounts - you won't pay tax on the first £1,000 of interest you earn if you're a basic rate taxpayer, although this drops to £500 if you're a higher rate taxpayer and £0 if you’re an additional rate payer.

  • Fixed-rate bonds - these fixed-rate savings accounts allow you to invest a large sum for a fixed period for a guaranteed return. During the fixed period, you have no access to your funds, so they’re better for medium-term savings.

  • High-interest current accounts – some current accounts offer high rates of interest on positive balances. This can make them a good place to stash emergency savings you may need to access quickly.

FAQs

What is your best cash ISA interest rate?

Our best cash ISA rate is currently 5.2%.

Is my money safe in a cash ISA?

Yes, your money is safe in a cash ISA as most are backed by the Financial Services Compensation Scheme (FSCS, which protects your money up to £85,000 in a single institution).

Can I take money out of a cash ISA and put it back in again?

Whether you can take money out of a cash ISA and put it back in again depends on which kind of account and provider you choose. Some ISAs let you withdraw money and replace it during the same tax year without using up any more of your ISA allowance. Find out more here.

Can I take my money out of my ISA whenever I want?

You can take money out of your cash ISA whenever you want if it allows unlimited withdrawals. However, there may be restrictions on paying money back in. Find out more here.

Can I pay into multiple ISAs?

You can have as many ISAs as you want, but you can only pay into one cash, one stocks and shares, and one innovative finance ISA in each financial year. Your allowance is split across all types of ISA too. Find out more here

What other types of ISA can I have?

You can pay into one of each of the four official types of ISA each year. So that's one cash ISA, one stocks and shares ISA, one lifetime ISA – if you’re aged 18 to 50 - and one innovative finance ISA. Your ISA allowance must be split between them though, so you can't pay more than £20,000 a year in total.

Can I have an ISA if I have bad credit?

Yes, you can have an ISA if you have bad credit as your finances are not checked when you open a savings account. If you need help choosing the right savings account, read this guide.

Can I pay into more than one cash ISA?

You can only open or pay into one cash ISA a year, but your ISA allowance can be split across different types of ISA. You could therefore pay into a cash ISA, a stocks and shares ISA, an innovative finance ISA and a lifetime ISA in the same year – but you can’t put in more than £20,000 overall.

Are the ISA rules changing in 2024?

Yes. In the Autumn Statement 2023, Jeremy Hunt revealed that the rules around ISAs would change in April 2024.

For example, the government plans to scrap the rule of only having one of each type of ISA and it will allow people to have multiple subscriptions to the same type of ISA. Plus, the government will allow partial transfers of ISA funds between providers during the year.

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About the author

Lucinda O'Brien
Lucinda O'Brien has spent the past 10 years writing and editing content for regional and national titles. She applies her industry knowledge to ensure readers can make confident financial decisions.

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References

1. Gov.uk annual savings statistics: HMRC statistics on Individual Savings Accounts 2023 (chart 3)