Best Cash Isa rates this week

Published by Adam Williams on 12 May 2008.
Last updated on 17 January 2018

If you're a UK taxpayer it's always worth considering a Cash Isa, even though most people can now get some savings interest tax-free.

The personal savings allowance means basic rate taxpayers can earn £1,000 interest tax free without using their Isa, and people who pay the 40% rate can get £500. Read our round-up of the best savings rates to find out more.

But remember that wrapping your money in an Isa means you won't need to worry about a future tax bill because your savings pot has grown and you're earning more than the tax-free threshold.

Everyone aged over 16 can save up to £20,000 in an Isa during the 2017/18 tax year.

Unless otherwise specified, all these banks are individually licenced by the FCA, so your savings will be covered by the Financial Services Compensation Scheme (FSCS) up to £85,000. All interest rates are AER - the annual equivalent rate.

Each week we select our Moneywise Best Buys, highlighting the best Cash Isas on the market.

Top easy access Isas

When picking an Isa, the first thing to decide is whether you want to fix your interest rate or opt for more flexibility with a variable rate. If you want to make additional deposits beyond the upfront opening deposit, or make withdrawals, then a variable rate Isa with easy access is probably most suitable for you.

OakNorth Bank Personal Easy Access Cash Isa 1.25%
The top deal comes from OakNorth Bank, paying 1.25% to savers. Must be opened by phone or online.

Paragon Limited Edition Easy Access Isa (Issue 3) 1.16%
This also offers a 1.16% rate of interest, account must be opened online.

Leeds Building Society Limited Issue Online Access Isa (Issue 4) 1.16%
This pays 1.16% to savers and accepts transfers from other providers.

AA Savings Easy Access Isa (Issue 14) 1.16%
This pays 1.16% to account holders, although this rate will drop to 0.2% after a year. Online only.

Best notice account Isas

Notice accounts need you to plan withdrawals in advance, but the rates can be higher than those offered by instant access in some cases.

Mansfield Building Society 60 Day Notice Cash Isa (Issue 2) 1.25%
This account must be opened by post or in one of the Mansfield’s branches across the East Midlands. Minimum deposit is £1.

Hinckley & Rugby Building Society 120 Day Notice Cash Isa 1.2%
This account must be opened by post or in one of Hinckley & Rugby's branches, located across the East Midlands. Minimum deposit is £500 and transfers from other providers are not permitted.

Top fixed rate Isas

If you want to secure the interest rate you earn on your savings, and are happy to lock your money away for a set period, then a fixed rate Cash Isa might be for you.

Best one-year Isas

Post Office Money Online Isa - One Year Fixed Rate Cash Isa (Issue 10) 1.45%
Post Office Money leads the way in the one-year market with this 1.45% rate. Must open online with a balance of £1,000 or more.

Virgin Money One Year Fixed Rate Cash Isa (Issue 326) 1.41%
The next best comes from Virgin Money at 1.41% on balance over £1 or more. Open in branch, by post and online.

AA Savings One Year Fixed Rate Isa (Issue 13) 1.36%
This account can be opened online with a balance of £500 or more. Transfers are permitted.

Charter Savings Bank One Year Fixed Rate Cash Isa 1.36%
This account pays 1.36% and must be opened online. The minimum deposit is £1,000.

Top two-year Isas

Aldermore Two Year Fixed Rate Cash Isa 1.65%
You must open this account online. Transfers are accepted from other Isa providers.

Post Office Money Online Isa - Two Year Fixed Rate Cash Isa (Issue 11) 1.6%
Post Office Money pays 1.6%, fixed for two years. Must open online with a balance of £1,000 or more.

Charter Savings Bank Two Year Fixed Rate Cash Isa 1.56%
This pick is available online and pays 1.56%. Transfers are accepted from other Isa providers.

Best three-year Isas

Charter Savings Bank Three Year Fixed Rate Cash Isa 1.86%
This account has a headline rate of 1.86%, fixed for three years. Online only.

Leeds Building Society Three Year Fixed Rate Isa (Issue 57) 1.85%
This offers a 1.85% rate on balances above £100. Account must be opened online, in branch or by post.

Aldermore Three Year Fixed Rate Cash Isa 1.75%
You can open this account online with balances of £1,000 or more.

West Bromwich Building Society Three Year Fixed Rate Isa 1.75%
For balances of £1,000 or more, this account offers a rate of 1.75%. Must be opened in branch, by phone or via the post.

Top five-year Isas

United Bank UK Five Year Fixed Rate Cash Isa 2.15%
This account offers full FSCS protection. It must be opened by post or in one of United Bank UK's branches, located in Birmingham, Bradford, Glasgow, Ilford, London and Manchester.

Charter Savings Bank Five Year Fixed Rate Cash Isa 2.11%
This five-year fix offers a rate of 2.11% and can only be opened online. Balances must be over £1,000.

Leeds Building Society Five Year Fixed Rate Isa (Issue 69) 2.05%
Fixed for five years at 2.05% and available in branch, by post or online. Balances must be over £100.

Transfers only

United Trust Bank Five Year Cash Isa Deposit Bond (Transfers In Only) 2.2%
This account pays 2.2% but only accepts transfers, you can't deposit new cash into this Isa.

Best Junior Isas

If you're looking to put some cash aside for your kids, Junior Isas are a great way of doing so. These accounts are available to anyone under 18 and tend to offer much higher rates than adult accounts, but there are some restrictions. Read the Moneywise guide to Junior Cash Isas to find out more.

Coventry Building Society Junior Cash Isa 3.5%
Accounts can be opened with a pound in branch, over the phone, online or by post. Interest is paid annually on 30 September. Minimum balance is £1.

Nationwide Smart Junior Isa 3.25%
Also pays 3.25% and the minimum opening balance is £1. It’s available to open in branch, by post and online. Interest is paid annually on 31 October. 

Danske Bank Junior Cash Isa 3.25%
Minimum balance is £1. This account is available to all and can be opened over the phone or in Danske Bank's branches across Northern Ireland. Savings are fully protected up to £85,000 by the FSCS.

Tesco Bank Junior Cash Isa 3.15%
Open this account with as little as £1. Tesco's Junior Cash Isa can be opened online and over the phone.

How are Moneywise Best Buys selected?

We look across as much of the market as possible to find the best deals using industry data from Defaqto.

All our picks are nationally available - online, by post or by phone. We try and pick products that are available to both new and existing customers, but we’ll highlight some offers for existing customers if they’re much better than what else is on offer.

Unless rates are significantly higher than on other accounts, we avoid products that pay an initial bonus (which is normally a euphemism for a rate cut after 12 months), or those with tiered rates (these may not pay the advertised interest rate if your balance rises above or falls below a set amount).

Deals only available to particular age groups or for “additional subscriptions” are also not included.

All these savings accounts are covered by the FSCS unless otherwise specified. We will prioritise deals from UK-based banks. If your bank is licenced by another European country, savings up to €100,000 will be protected, but by the government where the bank is headquartered, rather than the UK authorities.

We reserve the right to use our discretion at all times.

Leave a comment

why is Al Ryan bank products

why is Al Ryan bank products not included. This bank is protected by fca!

Hi Amrit, we don't include Al

Hi Amrit, we don't include Al Rayan Bank because this is a list of accounts which pay high rates of interest. Al Rayan does not pay interest on any of its accounts.

What is the best way to

What is the best way to invest to the benefit of my grandchildren who are Australian citizens?