Compare the best cash ISA rates

Take advantage of your annual tax-free ISA allowance. You can invest up to £15,000 in a New Cash ISA and pay no tax on the returns. Some accounts also allow you to transfer in money invested in the previous tax year so you can maximise returns on all your tax-free savings.

Compare cash ISAs - featured accounts - Ordered by interest rate (AER)

Apply for the accounts below today or see all cash ISA accounts

  1. Great for
    Transferring existing ISA balances
    Open with as little as £500
    But be aware that
    You must be over the age of 18, and a UK resident
  2. Great for
    Transferring existing ISA balances
    Customers who don’t need regular access to their savings
    Online application and access
    But be aware that
    You are limited to 3 withdrawals per tax year
    More than 3 withdrawals will result in a lower rate of 0.75% AER
  3. 2015 SUPERS

    Winner of the best overall savings provider

    Great for
    Opening an account with just £1
    Unlimited withdrawals without penalty
    Transferring existing ISA balances
    But be aware that
    Interest is paid annually
    • Provider/Product name ISA Extra (Issue 14)

      BM Savings

      ISA Extra (Issue 14)

    • Interest rate (AER) 1.20% Variable Includes Fixed bonus of 0.70% for 12 months
    • Min/Max opening amount £1 to £ no limit
    • Notice / Term Notice Period: none
    • Account type Cash ISA Transfer In
    • Access Internet Post Telephone In Branch
    • Go to site

      More details

    Great for
    Choose annual interest rate of 1.20% tax free/AER variable or monthly interest 1.19%/AER 1.20% variable (includes a fixed bonus of 0.70% for first 12 months)
    Unlimited withdrawals and deposits up to the ISA allowance of £15,000 (less any amount invested in a stocks & shares ISA this tax year) plus transfers in from previous tax years
    Applying online or by phone
    But be aware that
    After 12 months, variable rate without bonus will apply, currently 0.50% tax free/AER
    Once you've paid in your full years ISA allowance you cannot replace any money you've withdrawn in the same tax year
    • Provider/Product name Cash ISA

      NatWest

      Cash ISA

    • Interest rate (AER) 1.00% Variable
    • Min/Max opening amount £25,000 to £ no limit
    • Notice / Term Notice Period: instant
    • Account type Cash ISA Transfer In
    • Access Internet Post Telephone In Branch
    • Go to site

      More details

    Great for
    Unlimited penalty-free withdrawals
    Transferring existing ISA balances
    But be aware that
    For balances below £25,000, lower tiered rates will apply starting from 1.00%
  4. Great for
    No penalties for withdrawals
    Transferring existing ISA balances
    But be aware that
    For balances below £25,000, lower tiered rates will apply starting from 1.00%
    • Provider/Product name ISA Saver Variable

      Halifax

      ISA Saver Variable

    • Interest rate (AER) 1.00% Variable Includes Fixed bonus of 0.50% for 12 months
    • Min/Max opening amount £1 to £ no limit
    • Notice / Term Notice Period: instant
    • Account type Cash ISA Transfer In
    • Access Internet Post Telephone In Branch
    • Go to site

    2015 SUPERS

    Winner of the best savings provider

    Great for
    Unlimited withdrawals and deposits up to the ISA allowance of £15,000 for the 2014/2015 tax year, plus transfers in from previous tax years
    Cash ISA transfers in benefit from the Halifax ISA Promise
    Halifax Savers Prize Draw: Register and hold £5,000+ in qualifying Halifax and/or Bank of Scotland savings accounts for the whole calendar month before each draw. Customers living in England, Wales & Scotland aged 18+ only (not NI)
    But be aware that
    After 12 months, variable rate without bonus will apply, currently 0.50% tax free/AER
    Any money you take out reduces the balance you could achieve at the end of the tax year
    You can save up to your maximum £15,000 allowance in a cash ISA, a stocks and shares ISA or a mix of the two per tax year
  5. Great for
    Transferring existing ISA balances
    Ability to add or withdraw funds if you wish, although you must not exceed the tax year allowance of £15,000.

    

Cash ISA Guide

What are cash ISAs?

Death and taxes are famously the only two real certainties in life. However, you can avoid paying tax on at least some of your savings by choosing a cash individual savings account (ISA) rather than a standard account.

Tax-free cash ISAs are available from most banks and building societies and are open to all UK residents over the age of 16.

There are limits on the amount you can pay in each year. This tax year, for example, the total ISA allowance per adult is £15,000.

Read more

The allowance can be held in entirely in a cash ISA, wholly in a stocks and shares ISA, or spread between the two.

It is vital to remember that any money paid into your cash ISA and then withdrawn will still count towards your ISA allowance.

Consequently, if you put £15,000 into your account and then withdraw £1,000, you will not be able to pay any more in before the end of the tax year.

What types of cash ISA accounts are available?

You can only open one cash ISA in any one tax year.

However, you can switch to a new cash ISA provider if you find a better deal – as long as the terms of your existing account allow you access to your money and the account you wish to move to accepts transfers.

And the good news is that, like standard savings accounts, cash ISAs come in a range of shapes and sizes.

Most are flexible easy access accounts. However, there are also fixed-rate cash ISAs available. Before signing up, it is therefore a good idea to check the terms and conditions.

When switching accounts, it is also vital to transfer any ISA cash across electronically using a transfer form provided by your new ISA provider as withdrawing it manually will mean losing the tax benefits.

As mentioned above, stocks and shares ISAs offer another option for those prepared to risk their capital in the hope of superior returns.

What are the advantages of cash ISAs?

With an ordinary savings account, 20% of the interest earned by a basic-rate taxpayer goes to the taxman. Higher rate taxpayers forfeit 40% of the interest they earn while those in the top tax band lose 45%.

Avoiding this tax is therefore the big advantage of taking out a cash ISA.

To illustrate the benefit, a basic-rate taxpayer would need to find a savings account paying 3.75% to beat a cash ISA at just 3%, while a higher-rate taxpayer would need to earn 5%, and a 45% taxpayer would need a massive 6%.

Why should you use MoneySuperMarket.com to compare cash ISAs?

It is important to make full use of your ISA allowance each tax year if you can, as you cannot roll over any unused allowance to the following tax year.

And the wide variety of ISAs on offer makes it crucial to compare accounts so that you are sure to get a top interest rate.

After all, there is no point avoiding tax if your ISA savings are languishing in a low-rate account. MoneySuperMarket can help you find the right cash ISA and boost your returns quickly and easily.

 
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