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ISAs Explained /

What is a Cash ISA?

Find out more about Cash ISAs
Selected ISAs

Fully Managed Stocks and Shares ISA

from Nutmeg

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: Fully Managed Portfolios
  • Invest From: Min. £500 single (+ £100 pm for ISAs below £5,000)

Why we like it: Get an intelligent stocks & shares ISA portfolio - Choose a portfolio that’s fully managed by our expert team, or one designed to remain steady and rebalance automatically. No tie-ins, no set-up fees, no exit charges. Easy, online set up in minutes. Start with as little as £500 (plus £100 per month for ISAs below £5,000). Simple fee structures – 0.25% to 0.75% depending on how much you invest, incl VAT. Plus, live chat, amazing customer support and brilliant investor tools and guides. Regulated by the FCA and protected by the FSCS. Capital at risk.

Investment Income Plan ISAs

FTSE 100 Enhanced Income Plan

from Investec

Allow ISA Transfers
Annual Income 4.56% fixed income
  • Counterparty: Investec Bank plc
  • Term: 5 years

Why we like it: Fixed income, fixed term, monthly payments and your capital back unless the FTSE falls by more than 50%. By offering a high fixed income rather than a variable income based on the performance of the stock market, this plans offers something different to income seekers.

  • 4.56% income paid regardless of the performance of the FTSE 100
  • Monthly income
  • Available for ISA, ISA transfer and direct investment
  • Capital is at risk if the FTSE 100 Index falls by more than 50% during the term and finishes lower than its starting value, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £3,000
  • An arrangement fee applies for this plan
  • Product designed to be held for the full term

Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.

Peer to Peer Lending ISAs

CROWD2FUND

from CROWD2FUND

ISA Option
Allows ISA Transfers
Regular Savings
Interest Rate Earn an estimated 8.70% APR on your investments
  • Term: 1 - 5 Years
  • Invest From: £10

Why we like it: Crowd2Fund’s Finance ISA is designed to make it easier for savers to invest while managing a diversified portfolio. You can transfer existing ISAs (Crowd2Fund will help you do this) and earn an estimated 8.7% APR* return tax free.

  • Currently 0% platform default rate
  • Access to your capital
  • EIS, SEIS & IFISA tax relief
  • Balance your level of risk
  • *Capital at risk
  • Peer to peer lending is not covered by the FSCS
Investment Fund Supermarket ISAs

Stocks & Shares ISA

from Charles Stanley

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 1,500+ funds
  • Invest From: £50 per month or £500 single

Why we like it: Invest through an award winning FTSE company, with extensive research and analysis and competitive charges. Choose from a range of investments including shares, funds, gilts, bonds, investment trusts and ETFs.

Fixed Rate Cash ISAs

3 Year Fixed Rate Cash ISA

from Aldermore

Interest Rate (AER) 1.25%
  • Term: 3 Years

'Winner' – ISA Provider of the Year for the 5th year running Consumer Moneyfacts Awards 2011-15

  • 1.85% gross/AER fixed for 3 years.
  • £1,000 minimum opening balance

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)

2 Year Fixed Rate Cash ISA

from Aldermore

Interest Rate (AER) 1.20%
  • Term: 2 Year

'Winner' – ISA Provider of the Year for the 5th year running Consumer Moneyfacts Awards 2011-15

1 Year Fixed Rate Cash ISA

from Aldermore

Interest Rate (AER) 1.00%
  • Term: 1 Year

'Winner' – ISA Provider of the Year for the 5th year running Consumer Moneyfacts Awards 2011-15

Easy Access Cash ISAs

30 Day Notice Cash ISAs

from Aldermore

Interest Rate (AER) 0.80%
  • Term: Easy Access

'Winner' – ISA Provider of the Year for the 5th year running Consumer Moneyfacts Awards 2011-15

  • Early withdrawals are permitted subject to loss of interest equivalent to the notice period
  • Open account with £1000

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)

What is a Cash ISA?

A Cash ISA is a way for you to save a set allowance per year in a useful tax-free wrapper. While you can only have one of each kind of ISA per year, you can split your allowance between the three kinds of ISA: Cash, Stocks and Shares and Innovative Finance.

Why have a Cash ISA?

There are many benefits to owning a Cash ISA. We’ve listed a few below:

There’s no income tax: this is perhaps the most obvious advantage. ISAs are tax-free meaning you can save on top of the Personal Savings Allowance

Flexible Access to your money: unless you have fixed rate account which tend to be more strict about withdrawals, you should be able to access your money quickly and easily

Ability to transfer: ISA providers have to let you transfer, although they could charge a fee for doing so. As long as the account you’re planning to move to accepts transfers, then you can keep on top of your savings goals by making sure your money is always in an account that’s working hard for you

How Much Will I Save with a Cash ISA?

Whatever your savings goals and whatever tax bracket you fall in to, you can pay 0% on any of the money held within the Cash ISA wrapper.

This sounds good but does it actually mean?

Simply: if you are a standard 20% tax-payer then you would usually pay 20% tax on your savings about the personal savings allowance; if you’re a higher rate taxpayer then you can expect to pay 40%.

By using your cash ISA allowance can therefore save you money by allowing you to keep 100% of any interest you earn.

What you save does depend on your individual circumstances and may be subject to change in the future.

Can I Transfer my Old ISA?

Usually, but It does depends on your circumstances. For example, if you have some money saved as a lump sum from a previous tax year, then you'll normally be permitted to transfer this from one cash ISA to another, or to a stocks and shares ISA. This transfer shouldn't affect your ISA investment allowance for the current tax year.

What Cash ISA Should I Choose?

Choosing between a fixed rate ISA and an Instant Access ISA can be tough.

An instant access cash ISA might be the right choice for you if:

  • You would like a good rate of interest, plus the ability to get hold of your money quickly if necessary
  • You need to take advantage of your annual tax-free savings allowance but only have a small amount to deposit - instant access ISAs can usually be opened from as little as £1
  • You want to be paid regular interest as instant access ISAs usually offer monthly or quarterly interest

A fixed-rate cash ISA might be right for you if:

  • You are happy to put your money aside for a set period of time - this usually allows you to accrue a higher rate of interest than you might get with an instant access cash ISA
  • You want to take advantage of your tax-free savings allowance and have a lump sum to deposit - many fixed-rate cash ISAs require an initial deposit of around £1000

You can use our services and tables to help you choose the right option for you.

Top tips for making the most of your cash ISA

  • You can only have one type of cash ISA in each financial year, so research your options carefully. Whether you choose a fixed-rate or instant access cash ISA, give some thought to your savings goals beforehand to help you determine what's right for you.
  • Remember that you can't carry your tax-free allowance over from one financial year to the next - so if you've got enough cash to hit your limit, stash it in an ISA.
  • Because a cash ISA operates on a year-long basis, it's a good way to try your hand at saving without committing yourself to anything long-term. It's also a great way to save for a specific event like a wedding, holiday, or starting a family.
  • Once you've set up your cash ISA, make sure you still keep an eye on the interest rates available from other providers. You may be able to switch cash ISA providers without incurring a charge.
  • To make life easier, set up a direct transfer from your current account into your cash ISA to make sure that you put aside a certain amount each month without fail.
  • Don't forget that you've got the option of opening a stocks and shares ISA, too. For more on this, see our page on stocks and shares ISAs.
Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.

Cash ISAs

ISAs are a tax-advantageous way to save or invest, check out some of the ISA options below

ISAs Products

Fund ISAs

There are a range of types of fund ISA

Fund ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

Latest News

High Income ISA Idea For Your 2017 ISA Allowance

23rd May 2017

The New ISA Allowance Is £20,000 Per Person. 

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