These let you withdraw and deposit money whenever you like without penalising you. You are limited to depositing £20,000 a year but some flexible ISA providers will let you withdraw cash that was deposited within the same tax year without it counting towards your allowance.
Find our best ISA rates for over 60s
Get a cash ISA for over 60s and earn tax-free interest up to 4.65%
Accurate as of Jul 5 2025
Using your ISA allowance at the start of the tax year could help to maximise returns
What is a cash ISA for over-60s?
A cash ISA for the over 60s is a savings account that comes with extra tax benefits.
ISAs, which stands for Individual Savings Accounts, were introduced by the government more than 20 years ago to replace PEPs (personal equity plans) and TESSAs (tax-exempt special savings accounts).
They are designed to encourage people to save more.
To provide an incentive, the government says that all ISA income is completely tax free, including any returns. However, there is a limit to how much you can save into your ISA. The current limit is £20,000 each tax year.
There are four kinds of ISA available, but the two most common are cash ISAs, where you get paid interest on your savings, and stocks and shares ISAs, where your money is invested.
With a cash ISA, you will earn interest on your savings, but you don't have to pay any tax on the money you make.
With a stocks and shares ISA, you make money through investment returns. These returns are also tax free.
People over 65 with an ISA[1]
6.2million
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How do cash ISAs for over-60s work?
A cash ISA for the over 60s works the same way as any standard savings account - with two exceptions:
You can only pay in £20,000 per person each year - although you can usually transfer as much as you like from your old ISA provider to a new one
All the money you make in interest is tax free
Just like with other savings accounts, you get different types of ISAs, depending on how long you are happy to lock your money away for and what kind of access you want. You can have fixed rate ISAs, easy access ISAs, notice accounts and more.
Since April 2024, you can also open multiple cash ISAs in the same tax year. For example, you could pay into an easy access cash ISA, a fixed-rate cash ISA and a notice cash ISA in the same year but you can’t put in more than £20,000 overall.
You also get the same FSCS protection as in the rest of the savings market, which means that the first £85,000 you have saved with each provider is safe, even if the bank or platform goes bust.
For example, you could pay into a cash ISA, a stocks and shares ISA and an innovative finance ISA in the same year but you can’t put in more than £20,000 overall.
How to choose a cash ISA for over 60s
There are a number of factors you should consider before selecting a cash ISA.
Account type
Easy access, fixed rate, regular saver… The right cash ISA will depend on how you want to save and how much access you want to your money.
Interest rate
The higher the interest rate, the better your return. So, look for the account that offers the best interest rate under terms you’re happy to accept.
Withdrawals
Can you withdraw your money if you need to? While some accounts allow unlimited withdrawals, others impose a limit or a penalty if you withdraw money within a specified term.
Introductory offers
Some cash ISAs offer a higher interest rate for an introductory period, say one year. This can boost your returns initially, but you’ll probably need to switch accounts to get the best deal once the offer ends.
Transfers
If you already have cash ISA savings and you want the best deal on your entire ISA pot, you’ll need an account that accepts transfers from other providers.
Management options
While some cash ISAs can be managed online, over the phone or via your local bank branch, others might be restricted to online only. So, it’s always worth checking the accessibility to ensure it’s suitable for your needs.
Is my money safe?
The Financial Services Compensation Scheme (FSCS) guarantees that the first £85,000 you have saved with a UK-authorised bank or building society (or the first £170,000 for a joint account) will be safe even if the business goes bust.
Our best instant cash ISAs for over 60s
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
Chip Clearbank - Cash ISA
Chip Clearbank's cash ISA is another great option if you're just starting your savings journey. At 4.33% AER BBR tracker inc. 1.03% fixed bonus for 12 months the interest rate is competitive and you can start saving with just £1. Being instant access, you can make a withdrawal whenever you need to, and because it's in ISA, any interest you earn won't count towards your personal savings allowance.”
Chip Clearbank - Cash ISA
Open with
£1
Interest rate
4.33% AER BBR tracker inc. 1.03% fixed bonus for 12 months
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 bonus | Excluding bonus |
| 4.25% | 3.25% |
| AER rate | |
| Including bonus | Excluding bonus |
| 3.3% | 4.33% |
Our best fixed cash ISAs for over-60s
Our editors pick these deals by weighing several factors such as the interest rate, term, withdrawal conditions, minimum opening balance and others for each product.
Editor’s pick
Paragon 1 Year Fixed Rate ISA
This fixed-rate ISA has an interest rate of 4.15% AER fixed and flexibility is its main perk (alongside tax-free savings). For example, you can easily transfer in existing ISAs with the choice of either monthly or annual interest payments. ”
Paragon 1 Year Fixed Rate ISA
Open with
£500
Interest rate
4.15% AER fixed
Term
1 year
Withdrawals and closure are permitted subject to 90 days interest penalty.
Show Details
Eligibility
Maximum Age
Unlimited
Minimum Initial Deposit
£500
Permanent UK Resident
YES
Rate Tiers
| Gross rate | |
|---|---|
| Including bonus | Excluding bonus |
| 4.15% | 4.15% |
| AER rate | |
| Including bonus | Excluding bonus |
| 4.15% | 4.15% |
What types of cash ISAs are available for the over 60s?
![Easy access cash ISAs]()
Easy access cash ISAs
These let you withdraw and deposit money whenever you like without penalising you. You are limited to depositing £20,000 a year but some flexible ISA providers will let you withdraw cash that was deposited within the same tax year without it counting towards your allowance.
![Notice cash ISA]()
Notice cash ISA
With these accounts, you need to give notice to withdraw money from your account or you will be penalised - usually through loss of interest. The required notice period could be up to 180 days but rates can be higher than with easy access cash ISAs.
![Regular saver cash ISA]()
Regular saver cash ISA
You commit to saving an amount of money every month up to a predetermined limit in exchange for a higher interest rate with a regular saver cash ISA. There may be restrictions on the number of withdrawals you can make.
![Fixed-rate cash ISA]()
Fixed-rate cash ISA
Fixed rate accounts often offer the best ISA rates for over 60s in exchange for savers keeping their money in them untouched for a specific length of time – usually between one and five years. Often, you are rewarded for locking money away for longer, but sometimes you can find market leading rates for just a one-year fix. So, shopping around and comparing the different rates for different terms is crucial.
What types of cash ISAs are available for the over 60s?
Easy access cash ISAs
Notice cash ISA
With these accounts, you need to give notice to withdraw money from your account or you will be penalised - usually through loss of interest. The required notice period could be up to 180 days but rates can be higher than with easy access cash ISAs.
Regular saver cash ISA
You commit to saving an amount of money every month up to a predetermined limit in exchange for a higher interest rate with a regular saver cash ISA. There may be restrictions on the number of withdrawals you can make.
Fixed-rate cash ISA
Fixed rate accounts often offer the best ISA rates for over 60s in exchange for savers keeping their money in them untouched for a specific length of time – usually between one and five years. Often, you are rewarded for locking money away for longer, but sometimes you can find market leading rates for just a one-year fix. So, shopping around and comparing the different rates for different terms is crucial.
Pros and cons
Pros
Cash ISAs give you interest tax free, so you keep all the interest you earn
Depending on the type of ISA, you can access your money when needed
Cash ISA allowances can be passed onto a spouse when you die; they’ll get a higher ISA allowance for that year
Cons
You can only save up to £20,000 each tax year
If you withdraw money, some accounts won’t let you top it back up once you’ve hit your annual ISA limit
What are the best alternatives to a cash ISA if you’re over 60?
Cash ISAs are one of the most popular savings products in the UK with over 60s, and millions of people pay into them each year.
But they're not the only place to put your money, which is good news as you can only pay into one at any given time.
If rates rise, and you want to take advantage of this that year, you’ll need to find another product, or transfer everything you’ve paid in that year to a new provider.
To help people looking to either get better returns or simply find somewhere else to save their cash, here are some of your options:
Stocks and shares ISAs - these let you put money into shares and other investments without paying income tax or capital gains tax on 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
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 if you’re an additional rate taxpayer you don’t get a savings allowance at all
Fixed rate bonds - These are fixed rate savings accounts that 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
Remember that only £85,000 is protected in each ISA or savings account. If you’ve built up more savings than that, you should think about splitting your money between several banks or building societies.
If you’ve got ISA money languishing in an old account that might not be paying the best interest rate, you need to think about how to maximise returns. Some accounts will let you transfer other ISA savings without it counting towards your limit for the year.
FAQs
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 with 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.
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.
Can I pay into multiple ISAs?
Yes, you can have as many ISAs as you want, but you can't exceed the £20,000 allowance. However, if you're under 40, you can only pay into one lifetime ISA.
What other types of ISA can I have?
As well as a cash ISA, you can also pay into one of each of the other three types of ISA each year. So that's a stocks and shares ISA, Lifetime ISA – if you’re aged 18 to 40 – and innovative finance ISA. Your ISA allowance must be split between them though, so you can't pay in more than £20,000 a year in total.
What is your best interest rate for cash ISAs for over 60s?
Currently, our best interest rate for cash ISAs is 4.65%.
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References
1. Savings statistics: Commentary for Annual savings statistics - September 2024