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Compare High Interest ISA

Pick the best high interest ISA to save your tax free allowance.

Multi Manager High Income

from Hargreaves Lansdown

Allows ISA Transfers
Regular Savings
  • Fund Choice: HL blend their favourite equity income funds to provide investors an investment which aims to deliver long term returns & reliable monthly income. Capital at risk.
  • Invest From: From £25

Listed Equity Income

from AVIVA Investors

Allows ISA Transfers
Regular Savings
  • Fund Choice: Aims to provide a dividend yield above the FTSE All-Share Index. Invests in UK equities judged to offer high yield, above average prospects of dividend growth and long-term capital growth. Income paid twice yearly. Capital at risk.
  • Invest From: £25 pm

Monthly Distribution

from Artemis

Allows ISA Transfers
Regular Savings
  • Fund Choice: High income yield fund suitable for long term investors drawing regular monthly income from their portfolios. Capital at risk.
  • Invest From: £25 pm

High Interest ISA

Technically, since there is no tax deductible on the interest gained in Individual Savings Accounts, each ISA can be considered a high interest ISA. However, there are certain ISAs that have much higher interests than others. 

These ISAs allows for a much greater return on investment regardless of the investment type, that is cash, stocks or shares. A high interest ISA is one that has a high interest rate throughout the entire term and mostly, these rates are fixed, as is the term of investment.

There are different types of high interest isa account:

Fixed rate ISA

In this account, the interest rate is pre-determined and fixed. Therefore the deposit made on this account gains a steady interest as per the set rate of interest. 

The set term for investment is annually. In the fixed rate ISA, which is arguably the highest interest ISA, the deposit or investment is made once. At the beginning of the term, the individual makes a single deposit or investment and cannot add more to the account. This ISA this therefore best for an individual with a fairly large sum of money and wishing to invest it all at once.

After the deposit is made depending on provider criteria the individual usually cannot make any withdrawals from the account and has to wait until the end of the set term, which will depend on how long the term is for. Fixed rate ISA terms can vary typically from 1 year to 5 years. The interest gained is therefore greatly dependent on the initial deposit. 

An individual can deposit as high an amount as possible as long as it does not exceed the allowance limit, that is £20,000 for the 2019/2020 tax year.

Easy Access or Instant Access ISAs

These types of isa account can be instant access, easy access or notice accounts where it is possible to make regular deposits. An individual also has more flexibility with these accounts than with a fixed rate ISA. 

With these isa accounts the interest available may vary and may not provide the higher interest you can achieve through a fixed rate isa.

Oliver Roylance-Smith
Edited by Oliver Roylance-Smith - ISA.co.uk
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.