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Cash ISAs

The very latest Cash ISA rates

The ISA allowance for 2020/21 is £20,000. Use our cash ISA tables below to compare a selection of market-leading cash ISAs for instant access, fixed rates and alternative ideas to maximise your tax free returns.

Fixed Rate Cash ISAs

3 Year Fixed Rate Cash ISA

from Aldermore

Interest Rate (AER) 0.75%
  • Term: 3 Years

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

  • £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) 0.70%
  • 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) 0.60%
  • Term: 1 Year

Open a 1 Year Fixed Rate Cash ISA with Aldermore Bank to get a great return. 

Easy Access Cash ISAs

Instant ISA Saver

from Nationwide

Interest Rate (AER) up to 0.05%
  • Term: Instant Access
  • Instant access
  • 0.01% interest on balances between £1 and £9,999, 0.03% on balances between £10,000 and £49,999, 0.05% on balances of £50,000 and above
  • Minimum deposit £1
  • Open and manage your account online or in branch
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be 16 or older
  • Must be UK resident

Calculate your interest with this plan

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

What is a cash ISA?

A cash Individual Savings Account (ISA) is a tax-free savings account which allows you to save up to a set amount of money per financial year without paying any tax on it,  you can check the current cash ISA limit by clicking here. You need to be a UK resident or Crown employee aged 16 or over to open an account. You can only have one cash ISA per tax year, but you can also have a different type of ISA, known as a  stocks and shares ISA, simultaneously.

Benefits of a cash ISA

There are three key benefits to a cash ISA:

  • No income tax - you don't pay tax on any interest you earn from the cash in your ISA.
  • Easy access - if you choose an instant access cash ISA (rather than a fixed-rate cash ISA) it's a convenient way to save at a good interest rate while retaining fast and easy access to your money, should you need it.
  • Easy transfers - if you find an ISA provider that offers a better deal than your current provider, you can transfer your cash ISA to them.

How much tax can I save with a cash ISA?

The good news is that whatever your tax bracket, you'll pay 0% tax on any savings held in a cash ISA. Compare this to the usual tax rates on savings:

If you're a basic rate taxpayer...
you would usually pay 20% tax on interest earned from savings.

If you're a higher rate taxpayer...
you would usually pay 40% tax on interest earned from savings.

If you pay tax at the additional higher rate...
you would usually pay 50% tax on interest earned from savings.

If you pay the 'savings rate' of tax for savings...
you would usually pay 10% tax on interest earned from savings.

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

The above information gives you a general idea of what you could save - remember that it depends on your individual circumstances and may be subject to change in the future.

Can I transfer a cash ISA?

It depends on your circumstances. If you've got some money saved as a lump sum from a previous tax year, you'll usually 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.

Which type of cash ISA is right for me?

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

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

Use our services to help you choose

Like any investment option or financial service, it's important to research your options before committing to a cash ISA. You might find our services useful for:

Comparing cash ISAs, including instant access ISAs and fixed-rate ISAs

Comparing cash ISAs with other savings options

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 can usually switch cash ISA providers without incurring any 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.

3 funds for a Stocks and Shares ISA

Stocks and Shares ISAs are a popular way for people to invest for their future. If you’re looking for inspiration on where to invest your ISA this tax year, take a look at our latest investment ideas.

Download your copy to discover three funds, including:

  • A total return fund
  • A global income fund
  • A responsible investing fund

FREE ISA Investment Ideas - Factsheet From Hargreaves Lansdown »

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

High Income ISAs

High income ISA ideas:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

Latest News

Our Top Picks for Technology Stocks and Shares ISAs

19th January 2021

The tech industry has been booming for the past fifteen years; and it seems to be a rollercoaster that only goes up. The tech bubble has yet to burst, with companies coming out with more and more technological developments and consumer demand is certainly not slowing down. So, for the tech-savvy investor who wants to put their pennies behind this strong growing industry, we’ve put together our top three picks for Technology Stocks and Shares ISAs. 

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