Cash ISAs

Cash ISAs

Compare Cash ISA Opportunities

Account
Aldermore Bank 30 Day Notice Cash ISA
Interest Rate
1.30%
Gross/AER
Term
30 Day Notice
Minimum Deposit
£1,000
Account
Ford Money Flexible Cash ISA
Interest Rate
1.17%
Gross/AER
Term
Instant Access
Minimum Deposit
£1
Account
Royal Bank of Scotland Instant Access Cash ISA
Interest Rate
up to 0.75%
Gross/AER
Term
Instant Access
Minimum Deposit
£1
Account
Bank of Cyprus 35 Day Notice Cash ISA
Interest Rate
0.75%
Gross/AER
Term
35 Day Notice
Minimum Deposit
£500
Account
Nationwide Instant ISA Saver Cash ISA
Interest Rate
up to 0.65%
Gross/AER
Term
Instant Access
Minimum Deposit
£1
Account
Aldermore Bank 3 Year Cash ISA
Interest Rate
1.80%
Gross/AER
Term
3 Years
Minimum Deposit
£1,000
Account
Bank of Cyprus 3 Year Cash ISA
Interest Rate
1.68%
Gross/AER
Term
3 Years
Minimum Deposit
£500
Account
Ford Money 2 Year Cash ISA
Interest Rate
1.65%
Gross/AER
Term
2 Years
Minimum Deposit
£500
Account
Aldermore Bank 2 Year Cash ISA
Interest Rate
1.65%
Gross/AER
Term
2 Years
Minimum Deposit
£1,000
Account
Bank of Cyprus 2 Year Cash ISA
Interest Rate
1.64%
Gross/AER
Term
2 Years
Minimum Deposit
£500
Account
Ford Money 1 Year Cash ISA
Interest Rate
1.45%
Gross/AER
Term
1 Year
Minimum Deposit
£500
Account
Aldermore Bank 1 Year Cash ISA
Interest Rate
1.40%
Gross/AER
Term
1 Year
Minimum Deposit
£1,000
Plan Name

Investec FTSE 100 6 Year Deposit Plan

Maximum Potential Return
45%
at end of term
Term
6 years
ISA Option

Important Information: This is a structured deposit plan and is capital protected. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In this event you may be entitled to compensation from the  Financial Services Compensation Scheme (FSCS), depending on your individual circumstances. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term.

Plan Name

Investec FTSE 100 Kick Out Deposit Plan

Maximum Potential Return
6.00%
per annum
Term
Up to 6 years
ISA Option

Important Information: This is a structured deposit plan and is capital protected. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In this event you may be entitled to compensation from the  Financial Services Compensation Scheme (FSCS), depending on your individual circumstances. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term.

Plan Name

Investec FTSE 100 3 Year Deposit Plan

Maximum Potential Return
15%
at end of term
Term
3 years
ISA Option

Important Information: This is a structured deposit plan and is capital protected. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In this event you may be entitled to compensation from the  Financial Services Compensation Scheme (FSCS), depending on your individual circumstances. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term.

Plan Name

Investec FTSE Income Deposit Plan

Potential Annual Income
3.50%
per annum
Term
6 years
ISA Option

Important Information: This is a structured deposit plan and is capital protected. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In this event you may be entitled to compensation from the  Financial Services Compensation Scheme (FSCS), depending on your individual circumstances. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term.

Plan Name

Investec FTSE 100 6 Year Defensive Deposit Plan

Maximum Potential Return
25%
at end of term
Term
6 years
ISA Option

Important Information: This is a structured deposit plan and is capital protected. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In this event you may be entitled to compensation from the  Financial Services Compensation Scheme (FSCS), depending on your individual circumstances. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term.

Plan Name

Investec FTSE 100 Defensive Kick Out Deposit Plan

Maximum Potential Return
4.50%
per annum
Term
Up to 6 years
ISA Option

Important Information: This is a structured deposit plan and is capital protected. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In this event you may be entitled to compensation from the  Financial Services Compensation Scheme (FSCS), depending on your individual circumstances. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term.

Plan Name

Investec FTSE 100 3 Year Defensive Deposit Plan

Maximum Potential Return
10.50%
at end of term
Term
3 years
ISA Option

Important Information: This is a structured deposit plan and is capital protected. There is a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated. In this event you may be entitled to compensation from the  Financial Services Compensation Scheme (FSCS), depending on your individual circumstances. In addition, you may not get back the full amount of your initial investment if the plan is not held for the full term.

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 for the 2018/19 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.

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.

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.

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.

  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 2018/19 is £20,000.
  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.

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.