How do cash ISAs work?
A cash ISA acts as tax 'wrapper', protecting your cash from taxation each year. Under the 2017/18 ISA allowance of £20,000, individuals are permitted to save all or part of this amount in a cash ISA. With a cash ISA, money is placed on deposit and all interest is paid gross without any tax having been deducted. You can put money into a your cash ISA as a lump sum, in regular amounts, or a combination of both - as long as your total contributions for the tax year don't exceed that year's allowance.
What kind of cash ISA should I choose?
There are several different types of cash ISA to chose from, so do your research to make sure you pick one that suits you:
- An instant access cash ISA offers straightforward access to emergency savings.
- A fixed rate cash ISA can sometimes provide a better rate of return for those prepared to lock their money away for a set period of time.
- Structured deposit plans - which offer index-linked while also offering capital protection - are becoming a popular way for people to use their cash ISA allowance.
Find the account with the best cash ISA rates can really make a difference to your savings – there are some competitive deals available which help your money grow, so if your current provider is not offering you the best cash ISA rates available, switch to another one to get a better rate and make the most of your cash ISA allowance.
As with all savings accounts, it's important that you shop around for the best deal. Use the tables below to help you compare our selection of the latest cash ISA deals, and make sure you're getting the most from your 2017/18 cash ISA allowance.