Post Office Cash ISAs
Compare The Latest Cash ISA Deals
Mobile App only ISA account. *Up to three withdrawals can be made within each 12-month without affecting the interest rate. The Plum Cash ISA includes a 2.54% AER variable underlying rate and a bonus rate of 2.12% for the first 12 months. More than three withdrawals made within each 12-month period, a lower rate of 2.54% (variable) will be applied. 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 – 2.54% AER (variable). Rate for each 12-month period after your first 3 months – 2.54% AER (variable). Rate when balance drops below £100 or after your fourth annual withdrawal – 2.54% AER (variable). Must be UK resident and be aged 18 or older
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*Up to three withdrawals can be made within each 12-month without affecting the interest rate. The Moneybox Cash ISA includes a 3.45% AER variable underlying rate and a bonus rate of 1.10% for the first 12 months (bonus only applicable to new ISA deposits. ISA transfers in receive the underlying rate only). More than three withdrawals made within each 12-month period, a lower rate of 0.75% (variable) will be applied. Up to three withdrawals can be made within each 12-month period from the date of opening without affecting the interest rate. Customers can transfer in any ISAs they hold with other providers into a Moneybox Cash ISA, on web and 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
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- Term: Instant Access
- Invest From: £100
Interest paid annually. Unlimited deposits and withdrawals. ISA transfers also allowed in (some providers charge a transfer fee). Open and manage online. FSCS Protected.. Must be UK resident and be aged 18 or older. After 12 months the interest rate changes to 1.45% AER variable. Online ISA is provided by OneFamily, savings in Post Office Cash ISAs are deposited with Bank of Ireland UK
- 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: Instant Access
- Invest From: £1
Headline rate includes a guaranteed fixed bonus rate of 3.01% for the first 12 months, plus the standard variable rate which is currently 1.05%. After 12 months, you’ll continue to receive the standard variable rate. Interest paid annually. Open and manage online or on mobile banking app. Unlimited deposits (up to a combined limit of £20,000 across your ISAs within this tax year) and unlimited withdrawals. ISA transfers also allowed in. FSCS Protected. Maximum balance £1,000,000. Must be UK resident and be aged 18 or older
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- Term: Easy Access
- Invest From: £10
Includes a 2.80% AER variable underlying rate and a bonus rate of 1.25% for the first 12 months (ISA transfers in receive 4.00% AER variable). Unlimited deposits and withdrawals. Transfer in any ISAs you hold with other providers. Interest accumulates daily, and is paid into your account every month. All money in your Cash ISA is held securely with partner banks Barclays & Bank of Scotland who are covered by the FSCS. Rated ‘Excellent’ on Trustpilot. Variable rate of interest. Must be UK resident and be aged 18 or older
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- Term: Easy Access (unlimited withdrawals for 1 year)
- Invest From: £1
Interest paid at maturity. Unlimited withdrawals for whole term. After 1 year your money will be automatically transferred to an online easy access ISA. Open and manage online. FSCS Protected. Must be UK resident and be aged 18 or older
- Term: Instant Access
- Invest From: £500
Mobile App only ISA account. The Moneybox Open Access Cash ISA includes a 3.25% AER variable underlying rate and a bonus rate of 0.55% for the first 12 months. Unlimited withdrawals. Interest paid monthly. A lower rate of 0.75% (variable) will be applied if balance drops below £500. Customers can transfer in any ISAs they hold with other providers into a Moneybox Open Access Cash ISA, on web and in-app. Covered by FSCS. Must be UK resident and be aged 18 or older
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- Term: Easy Access
- Invest From: £1
Lightyear’s Cash ISA pays whatever the current Bank of England base rate is (currently 3.75%). Unlimited deposits within HMRC ISA limits, and withdrawals. Transfer in any ISAs you hold with other providers. Flexible ISA: withdraw and repay into the same ISA in the same tax year without it counting towards your annual allowance. Interest earned daily, paid monthly. Variable rate of interest, will move in line with Bank of England base rate. Must be UK resident and be aged 18 or older. Lightyear Cash ISA money is invested into QMMFs and therefore capital is at risk.
Show More- Term: Easy Access
- Invest From: £1
Unlimited deposits and withdrawals. Interest paid annually. ISA transfers in also allowed. Open and manage your account online. FSCS Protected. Maximum balance £2,000,000. Must be UK resident and be aged 18 or older
- Term: Instant Access
- Invest From: £1,000
3.35% AER / 3.30% tax-free p.a (variable), interest paid monthly. Flexible ISA – withdraw and replace funds without affecting your annual ISA allowance. Unlimited deposits and withdrawals. Interest paid monthly. ISA transfers also allowed in. FSCS Protected. Tax treatments depend on your individual circumstances and may change in the future’. Powered by ClearBank: Wealthify will provide the day-to-day servicing of the account with ClearBank providing the account itself. Must be UK resident and be aged 18 or older
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- Term: Instant Access
- Invest From: £1
Unlimited deposits and withdrawals. Interest paid monthly. ISA transfers also allowed. Open and manage online or in app
FSCS Protected. £500,000 maximum deposit across all OakNorth accounts. Must be UK resident and aged 18 or older
- Term: 1 Year
- Invest From: £1,000
Interest paid annually. ISA transfers in also allowed. Open and manage online. FSCS Protected. Maximum balance £1,000,000. Must be UK resident and be aged 18 or older. Withdrawals permitted subject to 90 days lost interest
- Term: 12 Months
- Invest From: £1
Interest paid monthly. ISA transfers also allowed in. Maximum balance £500,000. FSCS Protected. Must be UK resident and be aged 18 or older. 90-day interest penalty on early withdrawals
- Term: 1 Year
- Invest From: £1
Interest paid annually. New deposits between £1 and £20,000. ISA transfers in also allowed. Open and manage online or on mobile banking app. FSCS Protected. After 12 months, your account will switch to an Instant Access Cash ISA and receive the standard variable rate. 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 18 or older. No withdrawals permitted. Closure permitted with 90 days’ loss of interest
- Term: 1 Year
- Invest From: £500
Interest paid annually. ISA transfers also allowed in (some providers charge a transfer fee). Open and manage online. FSCS Protected. Must be UK resident and be aged 18 or older. Withdrawals permitted subject to 90 days loss of interest. Online ISA is provided by OneFamily, savings in Post Office Cash ISAs are deposited with Bank of Ireland UK
- 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: £1
Interest paid at maturity. ISA transfers also allowed in. Maximum deposit £250,000. FSCS Protected. Winner of Platinum Feefo Trusted Service Award in 2024. Must be UK resident and be aged 18 or older. No withdrawals permitted
- Term: 2 Years
- Invest From: £1000
Interest paid monthly or annually. ISA transfers in up to a maximum account balance of £1,000,000. FSCS Protected. Must be UK resident and be aged 18 or older. 180 day interest charge on early withdrawals
- Term: 24 Months
- Invest From: £1
Interest paid monthly. ISA transfers also allowed in. Maximum balance £500,000. FSCS Protected. Must be UK resident and be aged 18 or older. 180 day interest penalty on early withdrawals
- Term: 2 Years
- Invest From: £100
Interest paid annually. ISA transfers also allowed in. Tax free interest. FSCS Protected. Must be UK resident and be aged 18 or older. No withdrawals permitted. Closure permitted with 180 days’ loss of interest
- 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: £500
Interest paid annually. ISA transfers also allowed in (some providers charge a transfer fee). Open and manage online. FSCS Protected. Must be UK resident and be aged 18 or older. Withdrawals permitted subject to 180 days loss of interest. Online ISA is provided by OneFamily, savings in Post Office Cash ISAs are deposited with Bank of Ireland UK
- Term: 2 Years
- Invest From: £1
Interest paid annually. ISA transfers also allowed in. Maximum deposit £250,000. FSCS Protected. Winner of Platinum Feefo Trusted Service Award in 2024. Must be UK resident and be aged 18 or older. No withdrawals permitted
- Term: 3 Years
- Invest From: £100
Interest paid annually. ISA transfers also allowed in. Tax free interest. FSCS Protected. Must be UK resident and be aged 18 or older. No withdrawals permitted. Closure permitted with 270 days’ 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 270 days lost interest
- Term: 3 Years
- Invest From: £1
Interest paid annually. ISA transfers also allowed in. Maximum deposit £250,000. FSCS Protected. Winner of Platinum Feefo Trusted Service Award in 2021. Must be UK resident and be aged 18 or older. No withdrawals permitted
- Term: 36 Months
- Invest From: £1
Interest paid monthly. ISA transfers also allowed in. Maximum balance £500,000. FSCS Protected. Must be UK resident and be aged 18 or older. 270 day interest penalty on early withdrawals
- Term: 5 Years
- Invest From: £100
Interest paid annually. ISA transfers also allowed in. Tax free interest. FSCS Protected. Must be UK resident and be aged 18 or older. No withdrawals permitted. Closure permitted with 360 days’ loss of interest
- Term: 5 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 365 days lost interest
- Term: 5 Years
- Invest From: £1
Interest paid annually. ISA transfers also allowed in. Maximum deposit £250,000. FSCS Protected. Winner of Platinum Feefo Trusted Service Award in 2024. Must be UK resident and be aged 18 or older. No withdrawals permitted
Cash ISAs available
The Post Office offers two different types of cash ISA to UK customers so they can choose the best savings plan for their individual needs:*
- Fixed rate cash ISA – This account is available over terms of one, two or three years and you can open an account with a minimum deposit of £500. Transfers in are permitted.
- Premier cash ISA – This variable-rate account offers penalty-free withdrawals at any time. The account can be accessed by Internet, phone banking or branch visits.
Stocks and shares ISAs
In addition to cash ISAs, the Post Office also provides options for those looking for stocks and shares ISAs.
Cash ISAs 2021
After the Bank of England cut UK interest rates following on from the 2008 financial crisis, they have remained at extremely low levels ever since.
The European credit crisis, huge public borrowing and more recently Brexit and COVID-19 have all put pressure on central banks to keep interest rates close to zero.
Indeed, the amount of global debt issuance by investment grade companies paying negative interest rate hit just over 17 trillion USD recently – a new record – although perhaps not one to shout from the rooftops about!
So what kind of returns can I expect on cash ISAs going forward?
The chart below from the BOE gives you a good visual aid on current cash return prospects.
“Looking at this graph
if you are looking to invest for the longer term you have to question the logic of putting money into a standard cash ISA”.Oliver Roylance-Smith, Head of investment & savings.
UK savers who keep money in long term savings accounts or Cash ISAs where returns are historically lower on fixed rate products will be doing very well to keep their money’s buying power ahead of inflation.
“Are you one of the 8.5 million adults that subscribed more than £44 billion into Cash ISAs in the last tax year, or maybe you’re part of the £268 billion currently held in Cash ISAs?
Either way, its possible that you are receiving record low returns, with market leading interest rates only offering around 1.0% to 1.10% AER on 3 to 5 year fixed rate ISAs at the moment. So are there any other options to consider?”
Needless to say, investors are left scratching their heads in how to earn any meaningful yield on their money.
3. Alternative Options To Consider
1. Cash ISA Deposit Plan
If you’re prepared to forego a fixed return, Investec Bank’s popular Kick Out Deposit Plan, offers the same capital protection as any other bank deposit, but will pay 2.25% for each year (not compounded), provided the FTSE 100 Index at the end of each year from year 3 onwards, is higher than its value at the start of the plan (subject to averaging).
That’s a potential 6.75% after 3 years, 9.0% after 4 years, 11.25% after 5 years, etc
Since the plan is also available as a Cash ISA, and accepts ISA transfers, if you’re thinking what else is there that could release greater potential from your cash, this is an option.
The downside is that the return is not guaranteed, so you could receive only your initial capital back.
2. Active Savings
Lets face it the best fixed cash ISA rates are not as competitive as the best non cash fixed ISA rates.
One of the challenges with cash is that rates are changing all the time and you need to be proactive in moving money when rates fall.
If you are looking for better returns on your cash (money held outside an ISA) & keeping your money in an ISA is less important than earning a top UK interest rate then…
The good news is that there is a new service offered by Hargreaves Lansdown called “Active Savings” where you no longer have the hassle of opening, closing and transferring your savings between different banks and building societies.
Once your account is open, you can pick and mix savings products from a range of banks and building societies, without ever having to fill in another form.
There are a range of products and terms to choose from, and you can have as many as you like.
With Active Savings there are a host of measures in place to help protect your cash. From Financial Services Compensation Scheme protection, to online encryption technology.
3. Stocks and Shares ISAs
If you are undecided on whether to go for a cash or stocks and shares ISA a key consideration is interest rates.
“Right now interest rates
are about as low as they can get!”
With cash ISA provider instant access and fixed rate products offering sub 1% rates at the time of writing the challenge over time is that the buying power of your money will deteriorate due to inflation. As at July 2020 the Retail Price Index figure was measured at 1.6%.
The average 1 year fixed rate as at September 2020 was 0.44% (Source: Bank of England).
In real terms the average account holder in a 1 year fixed rate bond is losing money in real terms.
If you want to tackle inflation and you are happy to lock your money away for 5 plus years then you should seriously consider a stocks and shares ISA.
History
The Post Office is British institution with a long and rich history, from its origins back in 1516 under Henry VIII to its consolidation with the invention of the postage stamp in the 19th century. Today, the Post Office provides a huge range of services, including a variety of financial products such as Cash ISAs. Whether you are looking to save money tax-free, or want you want to invest your ISA allowance, the Post Office can provide a range of ISA solutions.
*Both types of Post Office Cash ISA are provided by Family Investments. Money in Post Office Cash ISAs is deposited with Bank of Ireland UK.