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Feb 2020

How Can A Cash ISA Help Me?

How Can A Cash ISA Help Me?

There are a number of situations when holding a cash reserve is prudent. Keeping your cash holdings in an ISA structure gives you flexibility, tax-free interest earnings, and the option to transfer to higher-earning ISA options at a later date. 

There are lots of ways that a Cash ISA can be a very useful financial tool to help you save, even if the interest rates aren’t quite as high as you might like.

We’ve broken down four ways that a Cash ISA can help you.

Cash ISAs can help you…

  1. build good habits
    The world of savings and ISAs can be a bit overwhelming to understand as a beginner on their first foray into finance. Cash ISA is your ISA 101 which can be used as a good foundation for further saving.
    Once you have opened a Cash ISA and learned how ISAs work, you are able to open a different form of ISA and transfer your funds. This means you can get your money in there and be earning interest and gaining experience which can set you up for further lucrative saving.
  2. save while still having access to your cash
    Other forms of ISAs, such as Lifetime ISAs or Stocks and Shares ISAs lock your money away for a fixed amount of time or until a particular life event (like buying a house). This is restricting what you can use your money for. It’s useful if that is what you want your account to do, but if you want access to your Cash while still having that ISA tax-free wrapper, a Flexible Cash ISA is the way to go.
  3. save from day one
    Once you hit the age of 16, you can put your money into a Cash ISA. If you are young and have come into some money, for example through inheritance or you have been saving all your pennies from your weekend job, then putting these funds into an ISA is the best way to maximise your finances for your future.
    You have to be 18 to open any other kind of ISA, so if you are 16/17, a Cash ISA is the way to go. Once you turn 18, you are able to transfer your funds into a Stocks and Shares ISA if you want to capitalise on their more attractive interest rates. This can be a great way to squirrel away some money to support yourself through university, college or the first few years of working life.
    Before you turn 16, your parents are able to put money away for you in a Junior ISA (JISA), but they have to be the ones to open the account. We have a blog on JISAs on our site, which is useful if you want more information.
  4. save as a couple
    It’s not possible to open a joint ISA account. For couples wanting to maximise on each of your tax allowance, you should spread your investment over different types of ISA accounts. 
    You could decide that one spouse should put all of their allowance into a Cash ISA, while the other might put theirs into a Fixed Term ISAa Lifetime ISA or an Investment ISA. 
    This way, you can maximise on the returns you get on your tax allowance through putting some of your joint money into Lifetime or Stocks and Shares ISA which have higher interest rates, whilst maintaining access to some of your money in the Cash ISA.

Read more on different options for Cash ISA accounts. 

Easy Access Cash ISAs

E-Cash ISA 2

from Scottish Widows Bank

Interest Rate (AER) 0.35%
  • Term: Instant Access

Scottish Widows E-Cash ISA 2 offers a winning combination of quick access and tax free savings.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

  • No bonus included in the rate
  • No notice period or loss of interest for withdrawals
  • Transfers accepted
  • Minimum balance £10
  • Access - Online, telephone and post
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Must be 16 or older
  • Annual interest
  • Variable interest rate

Calculate your interest with this plan

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

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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I found the way the different options are presented very clear - much more useful than some other comparison sites. I sent it to my daughter as well.


Very informative, find myself a good ISA account with best return in terms of interest.


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Rob Holden

The website was very useful and informative.

Andrew Johnson

ISA can be confusing at first and this site includes a useful and helpful introduction into the world of ISAs