Compare our best Cash ISA rates
Get tax-free interest on your savings with a Cash ISA. Whether you're looking to save £20 or £20,000 a year, our best ISAs have a range of rates, terms and access options to suit your circumstances.
Cash ISA deals
Aldermore 1 Year Fixed Rate Cash ISA
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1,000 | 4.72% | 4.72% | 4.72% | 4.72% |
| Maximum Age | Unlimited |
| Minimum Initial Deposit | £1,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Royal Bank of Scotland 1 Year Fixed Rate ISA Issue 346
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1,000 | 4.6% | 4.6% | 4.6% | 4.6% |
| Maximum Age | Unlimited |
| Minimum Initial Deposit | £1,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Leeds Building Society 1 Year Fixed Rate ISA Issue 204
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £100 | 4.6% | 4.6% | 4.6% | 4.6% |
| Maximum Age | Unlimited |
| Minimum Initial Deposit | £100 |
| Minimum Age | 18 years |
| Minimum Monthly Investment | £1 |
| Permanent UK Resident |
Yorkshire Building Society 4.45% Fixed Rate e-ISA to 30/06/2025
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £100 | 4.45% | 4.45% | 4.45% | 4.45% |
| Maximum Age | Unlimited |
| Minimum Initial Deposit | £100 |
| Minimum Age | 18 years |
| Minimum Monthly Investment | £10 |
| Permanent UK Resident |
NatWest 1 Year Fixed Rate ISA Issue 346
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1,000 | 4.6% | 4.6% | 4.6% | 4.6% |
| Maximum Age | Unlimited |
| Minimum Initial Deposit | £1,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Paragon 2 Year Fixed Rate ISA
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £500 | 4.55% | 4.55% | 4.55% | 4.55% |
| Maximum Age | Unlimited |
| Minimum Initial Deposit | £500 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Aldermore 2 Year Fixed Rate Cash ISA
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1,000 | 4.55% | 4.55% | 4.55% | 4.55% |
| Maximum Age | Unlimited |
| Minimum Initial Deposit | £1,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Royal Bank of Scotland 2 Year Fixed Rate ISA Issue 347
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1,000 | 4.2% | 4.2% | 4.2% | 4.2% |
| Maximum Age | Unlimited |
| Minimum Initial Deposit | £1,000 |
| Minimum Age | 18 years |
| Permanent UK Resident |
Leeds Building Society Limited Issue Online Access ISA (Issue 72)
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £1,000 | 4.75% | 4.75% | 4.75% | 4.75% |
| Maximum Age | Unlimited |
| Minimum Initial Deposit | £1,000 |
| Minimum Age | 18 years |
| Minimum Monthly Investment | £1 |
| Permanent UK Resident |
Leeds Building Society 2 Year Fixed Rate ISA Issue 196
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| Gross rate | Gross rate | AER rate | AER rate | |
|---|---|---|---|---|
| Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
| £100 | 4.35% | 4.35% | 4.35% | 4.35% |
| Maximum Age | Unlimited |
| Minimum Initial Deposit | £100 |
| Minimum Age | 18 years |
| Minimum Monthly Investment | £1 |
| Permanent UK Resident |
Compare another type of savings
What is a cash ISA?
ISA stands for Individual Savings Account. With a cash ISA, you earn interest on your savings, but you don't have to pay any tax at all on the interest you receive.
For each tax year, you are granted an ISA allowance. For the 2021/22 tax year - which runs from 6 April, 2023 until 5 April, 2024 - the annual ISA allowance is £20,000 for adults.
Your ISA allowance can be split across different types of ISA. For example, you could have a cash ISA, a stocks and shares ISA and/or an innovative finance ISA – but you can’t put in more than £20,000 overall.
Because you can open one cash ISA each new tax year, over time, you might end up with several cash ISAs. But, remember, this doesn't increase your tax-free cash ISA limit. You can still only pay into one cash ISA each year.
The one thing to remember about having a cash ISA is that it is tax free for the entire time that your money is in there. That's why it's a good idea to use up your ISA allowance each year, if you have money to save.
Make the most of your tax-free ISA allowance before 5th April 2023.
Who can get a cash ISA?
Any UK resident aged 16 or over can open a cash ISA. You must not have already saved into a different cash ISA in the same tax year or used up your ISA allowance.
If your child is under 16, they can't open an adult ISA and you can't open one for them. You'd have to open a junior cash ISA for them instead. They can't open an adult stocks and shares ISA or lifetime ISA until even later, when they turn 18.
Types of cash ISA
Before you do a comparison to find the best ISA rates, you'll need to decide what type of cash ISA you're looking for. All cash ISAs are tax free. There are lots of types to choose from, including:
Instant cash ISA
You can withdraw and put in money from your ISA allowance whenever you like.
Notice cash ISA
You will need to give to give notice to withdraw money from your account or you will be charged. This notice could be up to 60 days.
Regular saver cash ISA
You commit to saving money every month in exchange for a higher interest rate.
Fixed-rate cash ISA
This gives you a good interest rate in exchange for you keeping your money there for a specific length of time, usually one to five years.
Junior cash ISA
You can open one on behalf of your child. It has its own ISA allowance (£4,368), and can't be touched until your child turns 18 years old.
Lifetime cash ISA
You can put in up to £4,000 a year and the government adds another 25%. You can withdraw to buy your first home or when you turn 60. Remember that you can’t open a LISA once you reach the age of 40.
Cash ISA interest rates
The most important part of choosing the best cash ISA for you is balancing access and interest rates.
Our graph shows the impact of different interest rates on £1,000 of savings over a two-year period. A seemingly small change in interest rate can have a big impact on the amount of money your savings are earning.
But access is important too. Some accounts with strict rules will charge you interest penalties and fees if you try to withdraw your money early. In the case of a Lifetime cash ISA, you will lose your bonus payments if you withdraw money to spend on something other than retirement or your first home.
Top tips to find the best cash ISA for you
Choosing the right cash ISA for you, depends on your personal and financial circumstances. For example, an instant access ISA is ideal if you’re worried you may need to access your pot of cash, but they don’t typically offer the strongest interest rates. In comparison, a fixed rate cash ISA, which makes you lock your money away for an agreed period, may be better if you know you don’t need to access your money for some time.
Keeping in mind how you want to manage your savings, will allow you to begin comparing the best ISAs for you. Simply put, it's not just about finding the best cash ISA interest rates.
When you’re looking at rates, you should also watch out for teaser rates. That’s when you’re offered a great rate for a short, initial period.
To find the best cash ISA for you, you'll need to think about:
The best cash ISA rates on offer
How much you have to put in when you open your account
The term
Whether you're allowed to do transfers
What kind of cash ISA you want, as there are lots of different types.
When you’re looking at rates, you should also watch out for teaser rates. That’s when you’re offered a great rate for a short, initial period.
Choosing a provider is also a crucial part of your decision. Ask yourself these questions to work out what's important to you in a provider:
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?
These are all crucial factors in choosing the top cash ISA provider for you.
Term cash ISA interest rates
Tracking down the best cash ISA for you involves balancing your need to access your money with finding the best interest rates on the market. Remember, small changes to interest rates can significantly impact the money you are earning.
Fixed-term accounts should have higher interest rates than instant-access accounts. However, they will often have strict rules around charges, interest penalties and fees if you try to withdraw your money prior to the end of your term. If you have a lifetime cash ISA, you will forfeit any bonus payments if you use your balance on something other than retirement or your first home.
Our table takes representative examples on the market at the time of writing. It shows how fixed-term savings produce higher interest rates, but you may find that the ability and freedom to access your money is worth more.
| Cash ISA term | Interest rate | Open with |
|---|---|---|
| Instant access (no term) | 0.58% | £5,000 |
| Lifetime ISA (no term)² | 0.85% | £1 |
| 1 year | 0.8% | £500 |
| 2 years | 1.01% | £500 |
| 3 years | 1.11% | £500 |
| 5 years | 1.25% | £100 |
Cash ISA pros and cons
It's great when you find the best cash ISA for your needs. But you should remember that, as with everything, there are still pros and cons. Here's the lowdown.
- Cash ISAs are tax free, so you get to keep all the interest you earn
- You have access to your money if you need to make a withdrawal for any reason
- Your money's protected by the Financial Services Compensation Scheme (FSCS¹), up to £85,000
- You may not be able to access your money instantly
- Even with the very best cash ISAs on the market, rates of interest aren't usually that high
- You can only save up to your ISA allowance and into one cash ISA account per tax year
Alternatives to cash ISAs
Other kinds of ISA give you tax benefits on capital gains made from financial investments.
These include:
Stocks and shares ISA: A tax-efficient way of investing your money. This lets you put your ISA allowance of £20,000 into a range of different investments. You could earn more money doing this than with a cash ISA but it's risky as the stock market's unpredictable. Be aware that you could lose money as the income can go up and down so you could get back less than you’ve invested.
Innovative finance ISA: Avoid paying tax on capital gains from crowdfunding or peer-to-peer investment. These aren't covered by the FSCS.
There are lots of alternatives to opening an ISA. These include:
Personal savings allowance: Everyone's allowed to earn a certain amount of interest without paying tax on it. A basic rate taxpayer can earn up to £1,000 in interest per year. This drops to £500 for higher rate taxpayers (2020/21 tax year). Remember that your cash ISA allowance is separate to your personal savings allowance.
Interest-paying current accounts: Top-paying current accounts pay as much as 5% on your money. These are currently hard to come by. The amount you can save is usually capped a lot lower than with an ISA. The cap tends to be £1,000-£3,000.
Premium bonds: These let you save money with the chance of winning cash prizes from monthly draws. For every £1 you put in, you get a unique number which is entered into the draw. If one of your numbers is chosen, you win a tax-free prize ranging from £25 to £1 million.
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'll have no access to your funds.
Peer-to-peer lending. This is where you invest your money by loaning it to a borrower. They pay you back, with interest. The risk is that the borrower might not be able to pay their debt.
"Unlike investment ISAs, returns are guaranteed with cash ISAs. You could earn more interest with a stocks and shares ISA, but you will be at risk of losing some or all of your money.
"Which is best for you depends on your appetite for risk. Think about how much you are prepared to lose before you choose the ISA for you."
How does a cash ISA work?
You can only open and pay into one cash ISA each year. But everyone gets a tax-free ISA allowance per year (£20,000 for the 2023/24 tax year), which is how much you're allowed to put in.
Your ISA allowance can be split across different types of ISA. For example, you could have a cash ISA, a stocks and shares ISA and/or an innovative finance ISA – but you can’t put in more than £20,000 overall.
Because you can open one cash ISA each new tax year, over time, you might end up with several cash ISAs. But, remember, this doesn't increase your tax-free cash ISA limit. You can still only pay into one cash ISA each year.
The good thing to remember about having a cash ISA is that it is tax free for the entire time that your money is in there. That's why it's a good idea to use up your ISA allowance each year, if you have money to save.
Who will benefit from a cash ISA?
Cash ISAs were once an incredibly attractive prospect, as they were a way to get tax-free interest on your savings. In 2016, the Personal Savings Allowance (PSA) was launched. The PSA means basic rate tax payers can earn £1,000 interest per year tax free, and higher rate tax payers can earn £500 interest per year tax free. This has made cash ISAs slightly less appealing to most people.
However, if you’re an additional rate tax payer, you don’t get any Personal Savings Allowance, so a cash ISA can be a way to earn tax-free interest. Similarly, if you’re over your Personal Savings Allowance
Transferring money from one cash ISA to another
You can usually transfer funds into your cash ISA from a previous year's ISA account. As long as it's a transfer, it doesn't count as having more than one ISA. Not all cash ISAs let you do this, so double check whether yours does. Some charge a fee.
Many older ISAs pay low rates, so transferring can be a helpful way to access better rates. You can even consolidate all your old ISAs into one, and up the rate on all your ISA cash in the process.
If you transfer all your funds into one account, you'll only have one cash ISA to manage. But accounts that allow transfers might not give you the best cash ISA rates. You can search for the best cash ISA transfer accounts using our comparison table.
If you do transfer all your ISA cash into one ISA account, you may then have more than £85,000 with one financial institution. This means you wouldn’t be within the Financial Services Compensation Scheme limit of £85,000 per institution. Therefore you may not have the protection you need.
To do a transfer, ask your new cash ISA provider for an electronic transfer form. You shouldn't just withdraw the cash yourself to move it, because your money could instantly lose its tax-free benefits. It's crucial that you do it in the right way. It usually takes around 15 days for the transfer to complete. You can make a complaint if it takes longer, which may speed it up.
There are a few ISA accounts that let you withdraw and replace money during a tax year, without losing that amount from your allowance. That would mean that you could take out £1,000 (for example), and then replace it in the same tax year without it affecting your ISA limit. ISAs that allow this are usually called flexible ISAs. Check carefully whether yours has this feature before you withdraw cash.
Remember that you can't transfer an ISA to someone else.
Cash ISA FAQs
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 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.
Do I have to tie my money up to save?
No, you can choose how much access you have to your money by picking the right savings account.
Is a cash ISA a safe place for my money?
When you've found the best cash ISA rates and the best cash ISA for you, you can start saving your money knowing it's safe. Most banks are backed by the Financial Services Compensation Scheme (FSCS).
This scheme protects your money up to £85,000, per financial institution that you bank with (not per account).
What is the difference between AER and gross Interest?
The AER, or Annual Equivalent Rate, is the rate of interest you will earn in a year including fees, bonuses and compounding.
Gross interest, or the gross interest rate, is what you earn when you first open your account. It does not consider compounding, fees, bonuses and time.
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Read MoreWhy compare cash ISA deals with money.co.uk?
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¹To find out more about how the Financial Services Conduct Authority protects your money, visit FSCS.org.uk.
²You must be 18 or over but under 40 to open a Lifetime ISA. To find out more visit the GOV.UK page.
Last updated: September 8, 2023