Compare High Interest ISA
Pick the best high interest ISA to save your tax free allowance.
- Term: Easy Access *Up to three withdrawals can be made within each 12-month without affecting the interest rate. More than three withdrawals made within each 12-month period, a lower rate of 3.00% (variable) will be applied
- Invest From: £1
Mobile App only account. *Includes a bonus of 0.88% AER (variable) if account held for 12 months. Transfer in any ISAs you hold with other providers. Interest rates drop if more than three withdrawals per year. Covered by FSCS. Rate when you transfer in your existing ISA – 4.29% AER (variable). Rate for each 12-month period after your first 12 months – 4.29% AER (variable). Rate when balance drops below £100 or after your fourth annual withdrawal – 3.00% AER (variable). Must be UK resident and be aged 18 or older
- Term: Easy Access. *Up to three withdrawals can be made within each 12-month period from the date of opening without affecting the interest rate. More than three withdrawals made within each 12-month period, a lower rate of 0.75% (variable) will be applied
- Invest From: £500
Mobile App only account. *The Moneybox Cash ISA includes a 4.25% AER variable underlying rate and a bonus rate of 0.91% for the first 12 months. Up to three withdrawals can be made within each 12-month period from the date of opening without affecting the interest rate. Transfer in any ISAs you hold with other providers into a Moneybox Cash ISA, entirely in-app. Covered by FSCS. If more than three withdrawals made within each 12-month period, a lower rate of 0.75% (variable) will be applied for the rest of that 12-month period. The lower interest rate of 0.75% will also apply if the account balance dips below £500, automatically returning to the higher interest rate when the balance returns to £500 or more again. Must be UK resident and be aged 18 or older
- Term: Easy Access
- Invest From: £1,000
Interest paid annually. Unlimited deposits and withdrawals. ISA transfers also allowed in. Open and manage online. FSCS Protected. Must be UK resident and be aged 18 or older
- Term: Easy Access
- Invest From: £1
Interest can be paid monthly or annually. Flexible ISA – you can replace any cash you withdraw from your ISA within the same tax year without it counting towards your annual ISA allowance. Unlimited deposits and withdrawals. ISA transfers in allowed. FSCS Protected. Must be UK resident and aged 16 or older
- Term: Easy Access
- Invest From: £1,000
Interest paid monthly or annually. Unlimited deposits and withdrawals. ISA transfers also allowed in. Open and manage online. FSCS Protected. Must be UK resident and be aged 18 or older
- Term: Easy Access - 30 Day Notice
- Invest From: £1,000
Unlimited deposits and withdrawals. ISA transfers in allowed. FSCS Protected. Must be UK resident and aged 16 or older. Withdrawals subject to 30 days notice
- Term: Instant Access
- Invest From: £1
Low minimum deposit. Interest paid annually. Unlimited deposits and withdrawals. ISA transfers also allowed in. Open and manage online. FSCS Protected. Must be UK resident and be aged 18 or older
- Term: 1 Year
- Invest From: £100
Interest paid annually. ISA transfers also allowed in. Open online, in branch or by post. FSCS Protected. Must be UK resident and be aged 18 or older. Withdrawals permitted subject to 90 days lost interest
- Term: 1 Year
- Invest From: £100
Interest paid at maturity. ISA transfers also allowed in. Tax free interest. FSCS Protected. Must be UK resident and be aged 16 or older. No withdrawals permitted. Closure permitted with 60 days’ loss of interest
- Term: 1 Year, with option to make three free withdrawals
- Invest From: £1
Make up to three withdrawals during the 12-month term of this account. Tax free ISA account. Open with £1 or transfer in existing ISA funds. Invest up to £20,000 per tax year. Manage your account online. Interest paid at maturity. FSCS Protected. Must be UK resident and aged 16 or older. Make more than three withdrawals and the rate drops to 2.15% AER/gross p.a. (variable). Not available in branch
- Term: 2 Years
- Invest From: £100
Interest paid annually. ISA transfers also allowed in. Open online, in branch or by post. FSCS Protected. Must be UK resident and be aged 18 or older. Withdrawals permitted subject to 180 days lost interest
- Term: 2 Years
- Invest From: £1,000
ISA transfers in allowed. FSCS Protected. Must be UK resident and aged 16 or older. Withdraw cash early if you need to (subject to loss of interest)
- Term: 3 Years
- Invest From: £100
Interest paid annually. ISA transfers also allowed in. Open online, in branch or by post. FSCS Protected. Must be UK resident and be aged 18 or older. Withdrawals permitted subject to 240 days lost interest
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, certain ISAs have much higher interests than others.
These ISAs allow 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 the investment.
There are different types of high-interest isa accounts:
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 per the set interest rate.
The set term for investment is annual. The deposit or investment is made once in the fixed rate ISA, arguably the highest interest ISA. At the beginning of the term, the individual makes a single deposit or investment and cannot add more to the account. This ISA is, therefore, best for an individual with a relatively large sum of money who wishes to invest it all at once.
After the deposit is made, depending on provider criteria, the individual usually cannot withdraw from the account and has to wait until the end of the set term, which will depend on how long the term is. 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 much as possible as long as it does not exceed the allowance limit, which is £20,000 for the 2022/2023 tax year.
Easy Access or Instant Access ISAs
These types of isa accounts can be instant access, easy access or notice accounts where it is possible to make regular deposits. Individuals also have 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.
Frequently Asked Questions
Can I withdraw money from an ISA?
For Cash or Stocks and Shares ISAs, yes, although some Cash ISAs may charge a fee or void your interest if you surrender your policy before the fixed term has ended.
How much can I contribute to an ISA?
The annual ISA allowance is set by HMRC each year, and the current limit is £20,000 per person for the 2023/24 tax year.
Will I receive dividends from a Stocks and Shares ISA?
Whether you receive dividends from your Stocks and Shares ISA will depend on the underlying investments you hold inside it. If your investments generate dividends, then you can opt to withdraw these automatically to your bank account tax-free if you wish.
Do I pay tax on a monthly income ISA?
No, all payments from an Income ISA is completely free from tax.
How much money do I need to invest to make £2,000 a month from a monthly income ISA?
The amount of income your ISA pays is not guaranteed and will fluctuate based on your investment value and the income your investments can produce.
However, to give a ballpark example, we’ve used an annual interest rate of 5%:
To obtain £2,000 per month you’d need to invest about £480,000.
Keeping in mind the current ISA allowance is £20,000 per year for contributions, to achieve this you would need to hold some of your income assets outside of an ISA where they’d be subject to tax.