Cash ISAs

Compare 2016 Cash ISA Deals

Instant Access Cash ISAs
ProviderAccountInterest RateTermApply
0.75%Easy AccessApply Now >
Earn 0.75% tax free/AER variable. Open with £100. Unlimited free withdrawals. Transfer in ISAs held elsewhere - no limit
0.80%30 Days NoticeApply Now >
0.80% gross/AER. £1,000 minimum opening balance. Unlimited withdrawals subject to 30 days notice.
0.75%Instant AccessApply Now >
0.75% AER/gross. Instant Access. Minimum deposit £1.
0.75%35 Days NoticeApply Now >
0.75% gross/AER. £500 minimum opening balance. Unlimited withdrawals subject to 30 days notice.
0.35%Instant AccessApply Now >
Instant access cash ISA open to new and existing customers. Transfers accepted. £10 minimum deposit.
Fixed Rate Cash ISA Selection
ProviderAccountInterest RateTermApply

1.20%

per annum

3 YearMore Info >
1.20% gross/AER fixed for 3 years. £1,000 minimum opening balance. Withdraw cash early if you need to (subject to loss of interest).
1.15%3 YearMore Info >
1.15% gross/AER fixed for 3 years. £500 minimum opening balance. Withdraw cash early if you need to (subject to loss of interest).

1.15%

per annum

2 YearMore Info >
1.15% gross/AER fixed for 2 years. £1,000 minimum opening balance. Withdraw cash early if you need to (subject to loss of interest).
1.10%2 YearMore Info >
1.10% gross/AER fixed for 2 years. £500 minimum opening balance. Withdraw cash early if you need to (subject to loss of interest).
1.05%1 YearMore Info >
1.05% gross/AER fixed for 1 year. £500 minimum opening balance. Withdraw cash early if you need to (subject to loss of interest).

0.95%

per annum

1 YearMore Info >
0.95% gross/AER fixed for 1 year. £1,000 minimum opening balance. Withdraw cash early if you need to (subject to loss of interest).
Alternatives to Fixed Rate Cash ISAs
ProviderPlan NameDeposit TakerISA OptionTermMaximum Potential ReturnMore Info
Retirement Deposit PlanInvestec Bank plcyes6 years

3.75%

per year, plus 22.5% at end of term

More Info >
  • 3.75% annual payments from capital
  • 77.5% remainder of initial deposit paid at end of term
  • Potential 22.5% growth return at end of term, if the Index is higher than 90% of Initial Value
  • Capital protected
  • Low minimum - £3,000
  • Short/medium alternative to fixed rates
  • Available for Cash ISA and  ISA Transfers 
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Only available for new ISA investments or ISA transfers, not direct investments
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only receive a return of your original capital
Kick Out Deposit PlanInvestec Bank plcyesUp to
6 years

3%

per annum

More Info >
  • 3% for each year if the FTSE 100 finishes higher than its starting value
  • Opportunity to mature early at year 3, 4 or 5
  • Capital protected
  • Short/medium term alternative to fixed rates
  • Available for Cash ISAs, ISA transfers and non-ISA
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only receive a return of your original capital 
6 Year Defensive Deposit PlanInvestec Bank plcyes6 years

24%

at end of term

More Info >
  • 24% fixed return if the Index is higher than 95% of its Initial Level
  • Capital protected
  • Low minimum - £3,000
  • Medium/longer term alternative to fixed rates
  • Available for Cash ISA,  ISA Transfers and non-ISA
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only receive a return of your original capital
4 Year Deposit PlanInvestec Bank plcyes4 years

12%

at end of term

More Info >
  • 12% fixed return if the Index is higher
  • Capital protected
  • Low minimum - £3,000
  • Short/medium alternative to fixed rates
  • Available for Cash ISA, ISA Transfers and non-ISA
  • Covered by the FSCS (Financial Services Compensation Scheme)
  • Limited offer - deadlines apply. May close early if oversubscribed
  • Plan designed to be held for full term
  • Arrangement fee applies
  • Returns not guaranteed. You may only receive a return of your original capital
Important Information: Structured deposits offer you the potential to earn higher returns than you would with a regular savings account. Your returns are based on the performance of an index or commodity. If the investment does not perform well you may receive no income or capital growth, but you can be confident that your capital will be repaid. You have no access to your deposit during the term of the account, typically 3 to 6 years but your original capital will be repaid in full at the end of the term. In the event that the deposit taker is unable to repay your initial investment and any returns stated you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS) depending on your individual circumstances.

What is a cash ISA?

A cash Individual Savings Account (ISA) is a tax-free savings account which allows you to save up to a set amount of money per financial year without paying any tax on it. The cash ISA limit currently stands at £15,240 per person and you need to be a UK resident or Crown employee aged 16 or over to open an account. You can only have one cash ISA per tax year, but you can also have a different type of ISA, known as a stocks and shares ISA, simultaneously.

 

Benefits of a cash ISA

 There are several key benefits to a cash ISA:  

  • No income tax - you don't pay tax on any interest you earn from the cash in your ISA
  • Easy access - if you choose an instant access cash ISA (rather than a fixed-rate cash ISA) it's a convenient way to save at a good interest rate while retaining fast and easy access to your money, should you need it
  • No need to declare - you don't need to declare your cash ISA on your tax return
  • Straightforward transfers - you can transfer your cash ISA to a different provider to get a better rate of interest.

 

How much tax can I save with a cash ISA?

The good news is that whatever your tax bracket, you'll pay 0% tax on any savings held in a cash ISA. Compare this to the usual tax rates on savings:  

  • Saving rate taxpayers - you would usually pay 10% tax on interest earned from your savings. In a cash ISA this savings interest is tax-free
  • Basic rate taxpayers - you would usually pay 20% tax on interest earned from savings. In a cash ISA this savings interest is tax-free
  • Higher rate taxpayers - you would usually pay 40% tax on interest earned from savings. In a cash ISA this savings interest is tax-free
  • Additional higher rate taxpayers - you would usually pay 50% tax on interest earned from savings. In a cash ISA this savings interest is tax-free.

 

Choosing the best cash ISA deal for you

 

There are several factors to consider when choosing a cash ISA:  

  • Do you want easy access to your money? An instant access ISA might be the right choice for you, as long as you're willing to accept a slightly lower rate of interest
  • Are you happy to lock away cash for a set period of time? Fixed-rate cash ISAs might be a better option as they have the potential to offer a greater return long-term
  • Do you have a lump sum to invest, or are you planning to make small regular payments? Different ISA providers offer different minimum deposits ranging from just one pound to several thousand pounds

 

There is no single 'right' cash ISA choice for everyone - it's a case of weighing up the different factors and considering which product and provider best meets your overall needs.

 

Can I transfer my cash ISA to a new provider for a better deal?

You are free to transfer your cash ISA at any time, making it easy to move your money around providers and ensure the most competitive rates. But remember that if you withdraw your cash and then open another ISA, you will lose all your tax-free benefits. To transfer an ISA without losing any tax benefits, ask your new ISA provider to arrange the transfer of funds on your behalf.

 

Getting the most from your cash ISA allowance

 

To help you make the most of your ISA allowance in 2016, keep these tips in mind: 

  1. You can only have one type of cash ISA in each financial year, so research your options carefully. Whether you choose a fixed-rate or instant access cash ISA, give some thought to your savings goals beforehand to help you determine what's right for you
  2. Remember that you can't carry your tax-free allowance over from one financial year to the next - so if you've got enough cash to hit your limit, stash it in an ISA. The cash ISA allowance for the financial year 2015/16 is £15,240.
  3. Because a cash ISA operates on a year-long basis, it's a good way to try your hand at saving without committing yourself to anything long-term. It's also a great way to save for a specific event like a wedding, holiday, or starting a family
  4. Once you've set up your cash ISA, make sure you still keep an eye on the interest rates available from other providers. You can usually switch cash ISA providers without incurring any charge
  5. To make life easier, set up a direct transfer from your current account into your cash ISA to make sure that you put aside a certain amount each month without fail
  6. Don't forget that you've got the option of opening a stocks and shares ISA, too. For more on this, see our page on stocks and shares ISAs.

 

Use our comparison tables for the latest cash ISA rates

 Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested.

Investments in Stocks & Shares ISAs do not contain the same degree of capital security as investments in deposits. Stocks and shares ISAs are designed as medium to long term investments of, for example, five years or more. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.