Compare the best cash ISA rates

Take advantage of your annual tax-free ISA allowance. You can invest up to £15,240 in a 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.

These are the best accounts available to open through MoneySuperMarket. We can show you all the accounts on the market, but we can only help you to open some of them.

Easy Access Cash ISAs – Ordered by rate (AER)

Easy access cash ISAs let you take advantage of your annual tax-free ISA allowance, and you can still have instant access to your cash.

  1. Great for
    Rate depends on the number of withdrawals
    0.75% Gross/AER variable if you make 4 or more withdrawals in a calendar year
    1.26% Gross/AER if you make 3 or less withdrawals in a calendar year
    Start saving from £1 and pay money in as often as you like. Transfer in your existing ISA balances using Virgin Money's ISA Transfer Service
    But be aware that
    If you make 4 or more withdrawals in a calendar year the rate reduces to 0.75% (AER) until the end of the year
    • Provider/Product name Cash ISA

      Sainsbury's Bank

      Cash ISA

    • Interest rate (AER) 1.20% Variable
    • Min/Max opening amount £500 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
    Transferring existing ISA balances
    Make multiple deposits up to the £15,240 annual allowance - or the full amount in one transaction
    For new and existing customers
    But be aware that
    Lower rate of 0.50% AER for balances that fall below £500
  2. Great for
    Opening an account with just £1
    Unlimited withdrawals without penalty
    Transferring existing ISA balances
    But be aware that
    Interest is paid annually

Fixed Rate Cash ISAs – Ordered by term

A fixed rate cash ISA could be ideal if you want to take advantage of your annual tax-free ISA allowance, and you can afford to lock your money away for a few years. It pays a guaranteed rate of interest for a set length of time.

  1. Exclusive

    You won't find this account on any other comparison site

    Great for
    Start saving from £1 and choose between monthly or annual interest
    Transfer in existing ISA balances, to bring all your ISAs together
    Know what return you'll get with this fixed rate of interest
    But be aware that
    Not suitable for regular deposits. This is a limited issue so don't delay
    Withdrawals are subject to a charge equivalent to 60 days' loss of interest on the amount withdrawn
    The maturity date of this product is 24 July 2017
  2. Great for
    Manage your money with online and telephone banking
    Interest rate guaranteed for 12 months
    But be aware that
    Partial withdrawals are not permitted after the start date of your Fixed Rate ISA
    Early closure charges apply equal to 90 days interest on the balance of your account

Not sure what account is right for you? Tell us a few details and we can help you decide

 


 

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 (2016/2017), for example, the total ISA allowance per adult is £15,240, and this will rise to £20,000 in the 2017/2018 tax year.

Read more

The allowance can be held in entirely in a cash ISA, wholly in a stocks and shares ISA, or in an innovative finance ISA, or it can spread between two or three of these.

Under new flexible ISA rules which came into effect on April 6, 2016, you can make withdrawals from your cash ISA and then pay this money back in without this counting towards your ISA allowance.

Consequently, if you put £15,240 into your account and then withdraw £1,000, you will be able to pay this £1,000 back 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 a cash ISA, you don’t pay any income tax on any interest you earn. 

Your ISA allowance is in addition to the new Personal Savings Allowance (PSA), which came into effect on April 6, 2016. All basic rate taxpayers can now earn £1,000 of savings interest a year without having to pay any tax on it. You’re a basic rate taxpayer in the 2016-17 tax year if your income is less than £43,000).

If you’re a higher rate taxpayer, paying tax at the 40% rate on an income between £43,001 and £150,000, you’re entitled to a lower PSA of £500 a year. 

If you’re an additional taxpayer earning £150,001 or more, you won’t get an allowance at all. 

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.

 

How our site works

We can show you Cash ISAs from all the companies on the market, but we can only help you open an account with some companies. We show you Cash ISAs from the companies we can help you with first, and you have the option to see all other accounts. We list accounts according to their interest rate, from highest to lowest. You can find out more about how we work here.

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