Important information
Tax treatment depends on your individual circ*mstances and may be subject to future change.
Designed to protect your savings from income tax, a cash Isa can also offer you a guaranteed return. We’ve listed the best cash Isa rates in the UK so that you can choose an account wisely.
The best cash Isa rate for you depends on a few different factors, such as how you save, when you need the money back, how much you have to put away and your savings goal.
There are a range of cash Isas to choose from. Fixed-rate Isas locks your money away for a certain period, but guarantee what you earn. Easy-access Isas give you quick, or instant, access to your money.
Lifetime Isas are available to those aged 18 to 39 and provide a 25% bonus on savings for retirement or purchasing a first home. Notice Isas require you to tell the provider a set period before you can withdraw funds.
A change in the rules about how many cash Isas you can have means you can now also have two cash Isas with different providers – and pay into both at once – for the first time.
What is the best fixed rate Isa?
A fixed-rate cash Isa can be a great option if you don’t need access to your savings and if you’re saving towards a longer-term goal.
The top paying fixed rate Isa is 4.75% over a one year term.
Longer-term Isas, with terms of five years or more, are paying rates up to 4.10%.
We break them down below:
Best one year fixed rate cash Isa
| Provider | Account name | Interest rate (AER) | Min/max deposit | Account access | |
|---|---|---|---|---|---|
 | 4.67% | £5,000 / £1,500,000 | |||
| | 4.64% | £1,000 / £1,000,000 | |||
 Sponsored | Cash ISA 1 Year Bond * | 4.65% | £5,000 / £1,000,000 | Online | More info |
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| | 4.63% | £1,000 / £1,000,000 | |||
| | 4.62% | £500 / £2,000,000 | |||
| | 4.62% | £10,000 / £2,000,000 | |||
Powered by data from Savings Champion
Best two year fixed rate cash Isa
| Provider | Account name | Interest rate (AER) | Min/max deposit | Account access | |
|---|---|---|---|---|---|
| | 4.45% | £5,000 / £150,000 | |||
| | 4.42% | £1,000 / £1,000,000 | |||
| | 4.41% | £2,000 / £1,000,000 | |||
| | 4.40% | £1 / £250,000 | |||
| | 4.40% | £1 / £20,000 |
Powered by data from Savings Champion
Best three year fixed-rate cash Isa
| Provider | Account name | Interest rate (AER) | Min/max deposit | Account access | |
|---|---|---|---|---|---|
| | 4.35% | £500 / £1,000,000 | |||
| | 4.31% | £1,000 / £1,000,000 | |||
| | 4.31% | £2,000 / £1,000,000 | |||
| | 4.25% | £5,000 / £1,000,000 | |||
| | 4.20% | £10,000 / £2,000,000 |
Read more: How are my savings taxed?
Best five year fixed rate cash Isa
| Provider | Account name | Interest rate (AER) | Min/max deposit | Account access | |
|---|---|---|---|---|---|
| | 4.10% | £2,000 / £1,000,000 | |||
| | 4.05% | £500 / £300,000 | |||
| | 4.05% | £1,000 / £1,000,000 | |||
| | 4.00% | £5,000 / £1,000,000 | |||
| | 4.00% | £10,000 / £2,000,000 |
Powered by data from Savings Champion
Is an easy-access Isa better for me?
Rates on easy-access accounts are nearly always variable, which means they can change at the provider’s discretion.
So, for an account that provides more certainty you may wish to stick with looking at fixed-rate Isas. However, being able to withdraw your money at any point is of course convenient.
Those looking to use their Isa allowance for building a “rainy day fund” – or something they can access immediately in case of an emergency – might prefer an easy access Isa.
Best easy access Isas
| Provider | Account name | Interest rate (AER) | Min/max deposit | Account access | |
|---|---|---|---|---|---|
| | 5.00% | £1 / £0 | |||
| | * | 4.92% | £100 / £40,000 | More info | |
| | 4.85% | £5,000 / £250,000 | |||
| | 4.85% | £1 / £500,000 | |||
| | * | 4.84% | £1 / £20,000 | More info |
Powered by data from Savings Champion
Read more: Best stocks and shares Isas
Is a lifetime Isa right for me?
Lifetime Isas can be a great place to save for a house deposit or retirement due to the added government bonus.
In essence, you can save up to £4,000 into your account each tax year and for every contribution made the government will add a 25% bonus on top. This means the maximum you can earn via this bonus is £1,000.
Lifetime Isas come in cash or stocks and shares form, with cash Isas offering a guaranteed rate of interest.
Read more: Best lifetime Isas for a house deposit or retirement
Best lifetime Isa rates
| Provider | Account name | Interest rate (AER) | Min/max deposit | Account access | |
|---|---|---|---|---|---|
| | 5.00% | £1 / £1,000,000 | |||
| | 4.30% | £1 / £0 | |||
| | 3.79% | £1 / £400,000 | |||
| | 3.51% | £1 / £500,000 | |||
| | 3.30% | £1 / £750,000 |
Powered by data from Savings Champion
Are notice cash Isas any good?
With a notice Isa, you must give notice to withdraw funds or face interest loss or a charge. The notice period varies and can be up to 180 days.
In the past some of the best notice accounts offered better cash Isa rates than their easy access counterparts. It largely made sense because of the accessibility constraints with notice accounts, making it easier to save.
However, today’s market-leading easy access rate is better than the top notice account.
Still if you don’t have the discipline to keep money in an easy-access Isa without withdrawing it before it builds over time, notice Isas are a solid option due to the extra difficulty in accessing your funds.
Best notice cash Isa rates
| Provider | Account name | Interest rate (AER) | Min/max deposit | Account access | |
|---|---|---|---|---|---|
| | 5.00% | £100 / £75,000 | |||
| | 4.85% | £1 / £1,000,000 | |||
| | 4.80% | £10 / £500,000 | |||
| | 4.60% | £1,000 / £20,000 | |||
| | * | 4.55% | £1,000 / £100,000 | More info |
Powered by data from Savings Champion
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Why are cash Isas worth it?
A cash Isa is a useful place to keep your savings, especially if you’re a high earner.
This is because the tax you pay on your savings is linked to your income tax bracket.
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Everything you need to know about ISAs: what is an ISA, how do ISAs work, what are the different types of ISA, and is an ISA worth it
Under current legislation, you may be eligible for a personal savings allowance, which allows you to earn a certain amount of interest each year before it is liable for income tax.
A cash Isa not for you? Open a stocks and shares Isa with AJ Bell
While cash Isas provide guaranteed growth, a stocks and shares alternative could end up paying more over the long run.
If you’re looking for a place to open your account, consider Times Money Mentor award-winning AJ Bell. It has access to thousands of funds and is suited for investors of all skill levels.
The personal allowance is as follows:
| Income tax bracket | Earnings bracket | Personal savings allowance |
| Basic rate taxpayer | £12,571 – £50,270 | £1,000 |
| Higher rate taxpayer | £50,271 – £125,140 | £500 |
| Additional rate taxpayer | £125,141 and over | £0 |
So, a basic rate taxpayer and a higher rate taxpayer would need to save £20,000 and £10,000 a year at 5% respectively to use their entire allowance.
For an additional rate taxpayer, meanwhile, their bill could soon add up. If they had £20,000 in a one year bond at 5% they’d earn £1,000 in interest and £450 would be liable in income tax.
By putting this money in a cash Isa instead, you would pay no tax on your interest.
It’s worth noting that this is a very basic example, our guide explains how your savings are taxed in more detail, plus how you may be eligible for a £5,000 starting rate for your savings.
Take our test: Which Isa is best for me?
How many cash Isas can I have?
Previously, you could only pay into one Isa of each type at once. For example, if you opened an easy-access cash Isa and deposited £10,000, you weren’t allowed to open a fixed-rate cash Isa at the same time and use up your remaining allowance while keeping the old account open too.
The remaining £10,000 would need to be invested in an alternative type of Isa account such as a stocks and shares Isa.
As of April this year, this rule has been abolished and you’re free to open and pay into as many cash Isas as you see fit.
You can also still transfer Isa allowances between providers and products.
Read more: Are you really getting the best savings rates?
Cash Isa FAQs
What is a flexible Isa?
A flexible Isa allows you to withdraw money from your account and replace it without affecting your £20,000 allowance.
For example, you paid £5,000 into a flexible easy access Isa and this leaves you with a £15,000 remaining allowance. But you then decide to withdraw £2,000 from your account to cover an emergency.
If your Isa was flexible, your allowance would increase to £17,000 and under a non-flexible Isa it would remain at £15,000.
A flexible Isa can therefore be a great option if you’re building an emergency fund and aren’t available for stocks and shares Isas.
Can I have a cash Isa and a stocks and shares Isa
Yes. Our guide explains the benefits of having both Isas.
What are the best cash Isas for over 60s?
Besides a lifetime cash Isa, those over the age of 60 have access to the best cash Isa rates mentioned above.
Important information
Some of the products promoted are from our affiliate partners from whom we receive compensation. While we aim to feature some of the best products available, we cannot review every product on the market.
