Compare Cash ISA deals!
A Cash ISA can be a good way of saving money, as ISAs usually offer a higher interest rate than standard savings accounts, and is not subject to tax.
Deposit Plan Offer
Looking for a Capital Protected alternative to Cash?
Potential 24.05% after 3 years
- Potential 24.05% if the FTSE 100 rises by any amount after 3 years
- Equivalent to 8.02% per year
- 3 year term
- Available as cash ISA, non ISA or ISA transfer
- Capital Protected – receive your initial capital back at the end of the term no matter how the FTSE 100 performs
Cash ISA Best Buy Tables
If you are looking for the best tax-efficient savings accounts for the 2018/19 tax year, our cash ISA best buy tables could help you with your search.
It’s important to remember that the interest rates and terms offered on cash ISAs tend to vary between providers, so it’s worth taking the time to compare cash ISA deals from several different providers if you are interested in opening an account.
The cash ISA best buy tables contain details of a range of different cash ISA deals currently on the market that may be of interest to you.
If you are looking to stash away some of your hard-earned money this year, a cash ISA could be an ideal product for you. Because every eligible UK resident has a tax-free ISA allowance of up to £20,000 for the 2017/18 tax year, cash ISAs can offer higher returns than many other types of savings accounts.
As you can see from our cash ISA best buy tables above, ISAs come in a range of different shapes and sizes, all offering varying features that could suit different people’s saving requirements.
Here is a brief overview of some of the different types of cash ISA:
- Instant access cash ISAs tend to allow you to withdraw funds as and when you like, with little or no notice. If you need frequent access to your savings, this account may be well worth considering, although the trade-off for this easy access is that you’re unlikely to get a particularly high rate of interest.
- Fixed rate cash ISAs offer an interest rate that is fixed for a set term, often ranging from 1 to 5 years. Generally speaking, the longer you lock away your money, the better the rate you’ll receive. However, this is not always the case, especially in the current financial climate, so you may wish to consider alternatives to fixed rate cash ISAs.
- Structured cash ISAs involve investing your money for a set period which can vary depending on the deal selected. Returns on structured cash ISAs are less predictable as they will rely on a certain financial index, but your initial deposit is protected.
When searching for a suitable offer, it is always worth comparing cash ISA deals from different providers in order to effectively weigh up the pros and cons of different deals. Use our cash ISA best buy tables to compare deals and find the right one for you.
What is a cash ISA?
The cash ISA limit for the 2024/25 tax year is £20,000 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.
What are the benefits of 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 can I save with a cash ISA?
- 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.
How do I choose a cash ISA?
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.
6 Cash ISA Tips
- 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
- 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 2024/25 is £20,000.
- 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
- 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
- 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
- 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.
Can I transfer my cash ISA to a new provider to get a better deal?
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.