Savings - SEO page - Cash ISAs

Compare the best cash ISA rates

Take advantage of your annual tax-free ISA allowance. You can invest up to £5,940 from April 6, 2014 and top up this amount  to £15,000 on July 1, 2014 in a New Cash ISA. 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. Existing Customers

    Great for
    New ISA Savers, keen to save on a regular basis
    Saving up to £1,250 each month, with no minimum
    Benefit from the new ISA tax limit of £15,000 if you invest the maximum monthly amount
    But be aware that
    Transfers from previous ISAs are not allowed
    The maximum monthly payment is £1,250
    Online application is for existing Nationwide customers only (Current Account, Mortgage, Savers or Credit Card holder)
    • Provider/Product name ISA Extra (Issue 9)

      BM Savings

      ISA Extra (Issue 9)

    • Interest rate (AER) 1.65% Variable Includes Fixed bonus of 1.15% for 12 months
    • Min/Max opening amount £20,000 to £ no limit
    • Notice / Term Notice Period: none
    • Account type Cash ISA Transfer In
    • Access Internet Post Telephone In Branch
    • Go to site

    Great for
    1.65% Tax free/AER variable (includes a fixed bonus of 1.15% for first 12 months) on balances of £20,000+
    Unlimited withdrawals and deposits up to the cash ISA allowance of £5,940 (£15,000 from 1st July) for the 2014/15 tax year plus transfers in from previous tax years
    Apply online or via telephone. Monthly interest available at lower rates
    But be aware that
    £1 - £19,999.99 will receive 1.40% Tax free/AER variable (includes fixed bonus of 0.90% for the first 12 months)
    After 12 months, variable rate without bonus will apply, currently 0.50% tax free/AER.
    Once you've paid in your full years cash ISA allowance you cannot replace any money you've withdrawn in the same tax year
    • Provider/Product name ISA Saver Online

      Halifax

      ISA Saver Online

    • Interest rate (AER) 1.55% Variable Includes Fixed bonus of 1.30% 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

    Savers Prize Draw

    One top prize of £500,000 to be won in June

    Great for
    Unlimited withdrawals/deposits up to the 2014/2015 cash ISA allowance of £5,940 (£15,000 from 1st July) plus transfers in from previous tax years
    Cash ISA transfers in benefit from the Halifax ISA Promise
    Halifax Savers Prize Draw: Register by 31st May and hold £5,000+ in qualifying Halifax and/or Bank of Scotland savings accounts for the whole of May. 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 0.25% tax free/AER
    Any money you take out reduces the balance you could achieve at the end of the tax year
    Anything invested in a stocks and shares ISA in the same tax year may reduce the maximum amount you can pay into a cash ISA
    • Provider/Product name ISA Saver Variable

      Halifax

      ISA Saver Variable

    • Interest rate (AER) 1.50% Variable Includes Fixed bonus of 1.00% 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

    Savers Prize Draw

    One top prize of £500,000 to be won in June

    Great for
    Unlimited withdrawals/deposits up to the 2014/2015 cash ISA allowance of £5,940 (£15,000 from 1st July) plus transfers in from previous tax years
    Cash ISA transfers in benefit from the Halifax ISA Promise
    Halifax Savers Prize Draw: Register by 31st May and hold £5,000+ in qualifying Halifax and/or Bank of Scotland savings accounts for the whole of May. 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
    Anything invested in a stocks and shares ISA in the same tax year may reduce the maximum amount you can pay into a cash ISA
  2. 2014 SUPERS

    Highly Commended provider of 2014

    Great for
    Opening your account with just £1
    Unlimited withdrawals without penalty
    Those with a previous cash ISA to transfer
    But be aware that
    A lower rate of interest will apply for balances less than £1,000
    • Provider/Product name Cash ISA

      NatWest

      Cash ISA

    • Interest rate (AER) 1.50% 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
    Those with a previous cash ISA to transfer
    But be aware that
    For balances below £25,000, lower tiered rates will apply starting from 1.00%
  3. Great for
    No penalties for withdrawals
    Those with a previous cash ISA to transfer
    But be aware that
    For balances below £25,000, lower tiered rates will apply starting from 1.00%
    • Provider/Product name Premier Cash ISA Issue 6

      Post Office

      Premier Cash ISA Issue 6

    • Interest rate (AER) 1.40% Variable Includes Fixed bonus of 0.50% for 18 months
    • Min/Max opening amount £100 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
    Transfers in from other ISAs are accepted
    Download an application online, apply by post, in branch or by call centre
    But be aware that
    Limited to two withdrawals per tax year
    Premier Cash ISA is provided by Family Investments. Money in Post Office Cash ISA is deposited with the Bank of Ireland UK

Happy to fix your ISA balance in return for a better rate?

Fixed rate ISAs - featured accounts - Ordered by term

Apply for the accounts below today or see all fixed rate ISA accounts

    • Provider/Product name 18 Month ISA Saver Fixed

      Halifax

      18 Month ISA Saver Fixed

    • Interest rate (AER) 2.00% Fixed
    • Min/Max opening amount £500 to £ no limit
    • Notice / Term Term: 18 month bond
    • Account type Fixed Rate Cash ISA Transfer In
    • Access Internet Post Telephone In Branch
    • Go to site

    Market leading

    Great for
    Save tax free up to the cash ISA allowance of £5,940 (£15,000 from 1st July) for the 2014/15 tax year plus transfers in from previous tax years
    Cash ISA transfers in benefit from the Halifax ISA Promise
    Halifax Savers Prize Draw: Register by 31st May and hold £5,000+ in qualifying Halifax and/or Bank of Scotland savings accounts for the whole of May. Customers living in England, Wales & Scotland aged 18+ only (Not NI)
    But be aware that
    All deposits need to be made within 180 days of account opening. No withdrawals allowed during the term of the product
    Early closure is allowed subject to the loss of 135 days tax-free interest
    Anything invested in a stocks and shares ISA in the same tax year may reduce the maximum amount you can pay into a cash ISA
    • Provider/Product name 3 Year ISA Saver Fixed

      Halifax

      3 Year ISA Saver Fixed

    • Interest rate (AER) 2.25% Fixed
    • Min/Max opening amount £500 to £ no limit
    • Notice / Term Term: 3 year bond
    • Account type Fixed Rate Cash ISA Transfer In
    • Access Internet Post Telephone In Branch
    • Go to site

    Market leading

    Great for
    Save tax free up to the cash ISA allowance of £5,940 (£15,000 from 1st July) for the 2014/15 tax year plus transfers in from previous tax years
    Cash ISA transfers in benefit from the Halifax ISA Promise
    Halifax Savers Prize Draw: Register by 31st May and hold £5,000+ in qualifying Halifax and/or Bank of Scotland savings accounts for the whole of May. Customers living in England, Wales & Scotland aged 18+ only (Not NI)
    But be aware that
    All deposits need to be made within 180 days of account opening. No withdrawals allowed during the term of the product
    Early closure is allowed subject to the loss of 270 days tax-free interest
    Anything invested in a stocks and shares ISA in the same tax year may reduce the maximum amount you can pay into a cash ISA
    • Provider/Product name 4 Year ISA Saver Fixed

      Halifax

      4 Year ISA Saver Fixed

    • Interest rate (AER) 2.40% Fixed
    • Min/Max opening amount £500 to £ no limit
    • Notice / Term Term: 4 year bond
    • Account type Fixed Rate Cash ISA Transfer In
    • Access Internet Post Telephone In Branch
    • Go to site

    Savers Prize Draw

    One top prize of £500,000 to be won in June

    Great for
    Save tax free up to the cash ISA allowance of £5,940 (£15,000 from 1st July) for the 2014/15 tax year plus transfers in from previous tax years
    Cash ISA transfers in benefit from the Halifax ISA Promise
    Halifax Savers Prize Draw: Register by 31st May and hold £5,000+ in qualifying Halifax and/or Bank of Scotland savings accounts for the whole of May. Customers living in England, Wales & Scotland aged 18+ only (Not NI)
    But be aware that
    All deposits need to be made within 180 days of account opening. No withdrawals allowed during the term of the product
    Early closure is allowed subject to the loss of 320 days tax-free interest
    Anything invested in a stocks and shares ISA in the same tax year may reduce the maximum amount you can pay into a cash ISA

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.

Read more

There are limits on the amount you can pay in each year. This tax year, for example, the total ISA allowance per adult is £11,880.

However, you can only put up to £5,940 into a cash ISA. If you want to take full advantage of your ISA allowance, you will have to shelter the remaining £5,940 from tax in a stocks and shares ISA, also sometimes called an equity ISA.

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 £5,940 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.

Remember, though, that if you choose to put more of the allowance in a stocks and shares ISA, it will affect the limit on your cash account.

So if you invest £7,000 in stocks and shares, you can only put £4,880 into a cash ISA.

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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