Find our best ISA rates for over 60s

Get a cash ISA for over 60s and earn tax-free interest up to 5.16%

We've compiled our best cash ISA rates for over 60s so you can find the right place for your savings.

Compare our best cash ISA rates for over-60s

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Last updated
April 18th, 2024

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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]
6million
A cash ISA is a popular option for anyone over 60 as it’s a safe way to save money and it has the added bonus of tax-free interest up to £20,000. Cash ISAs are also currently offering very competitive rates, so try and avoid leaving your money in a low-interest account.

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 three exceptions:

  • You can only pay into one cash ISA per year - but it doesn't have to be the same account as last year

  • 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.


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.

While you can only open or pay into one cash ISA a year, your allowance can be split across all the different types of ISAs.

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.
fscs-logo
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 5.1% AER BBR tracker 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.

Author image
Senior Personal Finance Editor
Card
Chip Clearbank - Cash ISA
Open with
£1
Interest rate
5.1% AER BBR tracker
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
4.99%4.99%
AER rate
Including bonusExcluding bonus
5.1%5.1%
Editor’s pick
Chip Clearbank - Cash ISA
Card
Chip Clearbank - Cash ISA
Open with
£1
Interest rate
5.1% AER BBR tracker
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
4.99%4.99%
AER rate
Including bonusExcluding bonus
5.1%5.1%

Chip Clearbank's cash ISA is another great option if you're just starting your savings journey. At 5.1% AER BBR tracker 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.

Author image
Senior Personal Finance Editor

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
Leeds Building Society Limited Issue Online Access ISA (Issue 71)

If you want flexibilty, this offering by Leeds gives you acess to your money during the entire 1 year term. The minimum opening balance of £1,000 makes it a good option for those saving for a large purchase, or as a fund to break into for energy expenses.

Author image
Senior Personal Finance Editor
Card
Leeds Building Society Limited Issue Online Access ISA (Issue 71)
Open with
£1,000
Interest rate
4.75% AER variable
Term
01 Jun 2026

No notice, penalty, or charge applies.

Show Details
Eligibility
Maximum Age
Unlimited
Minimum Initial Deposit
£1,000
Permanent UK Resident
YES
Rate Tiers
Gross rate
Including bonusExcluding bonus
4.75%4.75%
AER rate
Including bonusExcluding bonus
4.75%4.75%
Editor’s pick
Leeds Building Society Limited Issue Online Access ISA (Issue 71)
Card
Leeds Building Society Limited Issue Online Access ISA (Issue 71)
Open with
£1,000
Interest rate
4.75% AER variable
Term
01 Jun 2026

No notice, penalty, or charge applies.

Show Details
Eligibility
Maximum Age
Unlimited
Minimum Initial Deposit
£1,000
Permanent UK Resident
YES
Rate Tiers
Gross rate
Including bonusExcluding bonus
4.75%4.75%
AER rate
Including bonusExcluding bonus
4.75%4.75%

If you want flexibilty, this offering by Leeds gives you acess to your money during the entire 1 year term. The minimum opening balance of £1,000 makes it a good option for those saving for a large purchase, or as a fund to break into for energy expenses.

Author image
Senior Personal Finance Editor

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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

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.

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 your ISA allowance and into one cash ISA account per tax year
Some of the best cash ISAs can still pay less than inflation
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. 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 tax year. If you're under 40, you can also pay into Lifetime ISA. Your allowance can be split across all types of ISA. Find out more here

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 5.16%.

Learn more about savings accounts

From how to choose the right savings account to understanding the tax-free benefits of ISAs, we've got you covered.
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What's the best place for your money?
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What is a Help to Save account?
Are cash ISAs still worth it?
Are cash ISAs still worth it?

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 2022