How to find the best ISA rates for over 60s
If you're looking for a cash ISA when you're over 60, use our table to compare ISAs and find the best ISA rates for over 60s.
Use our comparison table to sort the cash ISAs into the most appropriate order, depending on what’s important to you and what you’re looking for. You’ll find some of the best ISA rates for over 60s in the table, to help you reach your financial goals.
What is a cash ISA?
ISA stands for ‘individual savings account’. Anyone of any age can have a cash ISA, as long as they’re over 16.
With a cash ISA you earn interest on your savings, but you don't pay any tax on the interest you receive.
Here’s how an ISA works.
Tips for comparing the best cash ISA rates for over 60s
When comparing the best cash ISA rates for over 60s, you'll want to consider these features:
The interest rate: The higher the rate, the better return you’ll get. Finding the best cash ISA rates for over 60s (or the best ISA rates for over 50s if you’re younger) is important. But remember it’s not the only factor at play when it comes to choosing a cash ISA.
The term: You can get a cash ISA that gives you instant access, if you think you could need your money suddenly. If you’re happy to tie your money up for longer, you could choose a 1-year fixed rate ISA or an even longer term, up to a 5-year fixed-term cash ISA. The longer the term, the better the interest rate you’ll get. You just need to be sure you won’t need the money during that time period.
ISAs that accept transfers: These let you move your ISAs from previous tax years into a new cash ISA. This is useful if you’d like to have all your money in one place.
The very best fixed rate ISA would offer a high interest rate, for a term of your choice, and the money would be transferable.
The other things to consider are:
what type of cash ISA you want
how much money you have to put in to open it
which provider you would like to bank with.
Choosing a cash ISA provider
It’s important to choose the right cash ISA provider. Even once you’ve found the best ISA rates for over 60s, if the provider isn’t right, you might want to reconsider.
Questions to ask yourself include:
Do I want the provider to have a high street premises?
Do I want a cash incentive to open my ISA?
Do I want a provider I already know and trust?
Do I want to be able to manage my ISA using a mobile app?
Do I want a provider who'll advise me on other savings products?
How do Cash ISAs for over 60s help you save money?
Saving in a cash ISA is beneficial because any interest you make from a cash ISA is tax-free. Plus, your money is usually protected under the Financial Services Compensation Scheme (FSCS). You get £85,000 of protection per person, per institution.
I’m looking for the best ISA rates for over 60s. What types of cash ISA can I get?
There are six types of cash ISA in our table. So, when you’re looking for the best ISA rates for over 60s, these are what you’ll be able to choose between:
Instant access ISA: These let you withdraw your money anytime you want, but don’t usually offer competitive interest rates.
Easy access ISA: These let you withdraw anytime, but it can take a short while for you to get your money out. They’re usually managed online, over the phone or by post.
Notice ISA: These let you withdraw money after you give a set amount of notice, such as 60 days. Or you can withdraw anytime if you’re happy to pay an interest penalty
Regular ISA saver: These require you to pay in a set amount each month to qualify for the advertised rate offered
Fixed rate cash ISA: These tie your money up for a set term from the date you open the account and the rate is guaranteed
Limited access ISA: These accounts tie your money till a set date, rather than for a set term after opening the account
Read this guide for more information on cash ISAs.
I’ve found the best cash ISA rates for over 60s, but how much money can I put in?
For each tax year, everyone in the UK over the age of 18 is granted an ISA allowance. For the 2021/22 tax year - which runs from 6 April, 2021 until 5 April, 2022 - the annual ISA allowance is £20,000 per person.
Your ISA allowance can be split across different types of ISA. For example, you could have a stocks and shares ISA and an innovative finance ISA – but you can’t put in more than £20,000 overall.
You get a new allowance every tax year.
If you already have cash ISAs, use our table to find a higher interest rate on a cash ISA that accepts transfers in.
How to transfer money between ISAs
If you have existing ISAs, here is how to transfer them into a new cash ISA.
Be sure not to tie your money up for longer than you think you can afford to. If you withdraw money before the account's maturity date you will be charged an interest penalty.
Finding the best ISA rates for over 50s
Cash ISAs for over 50s work much like any other cash ISAs. You’ll get an annual tax-free ISA allowance of £20,000 (tax year 2021/22), and that’s how much you can put in.
Cash ISAs don’t usually come with age limits or specifications. So you could use the table on this page to find the best ISA rates for over 50s. The best cash ISA for you will be the one that suits your circumstances the best.
I’ve found the best ISA rates for over 60s, but is a cash ISA right for me?
The best thing about cash ISAs is that they’re tax free, so you get to keep all the interest you earn. Plus, you have access to your money, and your money is protected by the FSCS.
The main downside is that rates of interest aren't usually that high. That's why you might prefer to look into the best savings accounts for over 60s to find the best option for you.
What are the best savings accounts for over 60s?
The best savings accounts for over 60s are the ones that best suit your situation.
Cash ISAs are great because they’re tax free, but you might prefer something that pays more interest, like a savings account. Even the best savings accounts for over 60s won’t be interest-free, though, so you’ll need to weigh up what’s best.
Alternatives to a cash ISA include:
If you’re looking for the best savings accounts for over 60s, you can find out about different types of savings accounts here.
You can read our guides to saving money here.
How to open a cash ISA account
If you decide a cash ISA is right for you, it’s very easy to do.
Use the comparison table at the top of this page to find best cash ISA rates and the best cash ISA for your needs overall. Decide which you'd like to open. You could open your cash ISA in a bank, online, by post or over the phone.
To open it, you'll need to put some money in the account. This could be £1-£1,000, depending on which cash ISA account you've chosen.
You'll also need to share your personal details so have these to hand. This could include your name, address, National Insurance number and dated signature.
Finally, you’ll need to read the ISA declaration carefully. This gives you important information about the ISA allowance and rules. For example, it might explain any penalties you'd need to pay if you withdraw money before the end of your fixed term.
