High Interest Cash ISAs
A high interest cash ISA is a simple way get a good return on your money through tax-free interest, particularly if you're a novice when it comes to choosing savings accounts. You can choose from instant access cash ISAs - which allow you to get hold of your savings at short notice, but tend to pay a lower rate of interest as a consequence - or fixed rate cash ISAs, which can offer a better rate of return in exchange for locking your cash away for a set period of time.
Benefits of a high interest cash ISA include:
- Tax-free status means you won't be asked to pay any tax on the interest you earn from the cash in your ISA.
- There is no need to declare your income from a cash ISA on your tax return.
- Straightforward transfers - you can transfer your cash ISA to a different provider to get a better rate of interest.
Compare the best high interest cash ISAs
There are several factors to consider when choosing a high interest cash ISA:
- Do you want easy access to your money? An instant access ISA might be the right choice for you, as long as you're willing to accept a slightly lower rate of interest.
- Are you happy to lock away cash for a set period of time? Fixed-rate cash ISAs might be a better option as they have the potential to offer a greater return long-term.
- Do you have a lump sum to invest, or are you planning to make small regular payments? Different ISA providers offer different minimum deposits ranging from just one pound to several thousand pounds.