Best Cash Isa rates this week

Published by Adam Williams on 12 May 2008.
Last updated on 23 August 2017

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.

The main reason not to use an Isa for your savings is if doing so will eat into the amount you could put into an investment Isa, where the tax relief could save you far more tax, as your investments are likely to grow faster.

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.

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.

Paragon Bank Limited Edition Easy Access Isa (Issue 2) 1.05%
This account pays 1.05% on balances of £1 or more. Must be opened online.

Post Office Money Online Isa (Easy Access Issue 10) 1.01%
This online-only account is available for balances over £100. There's no limit to how much you can put in the account but remember that this account includes a 0.76% bonus for the first year. After this the rate will drop to 0.25% so make a note in your diary and switch when this happens.

Tesco Bank Instant Access Cash Isa 1.01%
This account can be opened online or over the phone. Tesco Bank pays 1.01% in balances over £1.

Notice account Isas

Notice accounts need you to plan withdrawals in advance, but the rates can be higher than those offered by instant access. Be aware these products are more likely to offered tiered rates, so the interest you get depends on your account balance.

Hinckley & Rugby Building Society 120 Day Notice Cash Isa 1.2%
You can open this account in branch or via post. Minimum balance £500 and no transfers from other providers are permitted.

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 of time, then a fixed rate Cash Isa might be for you.

One year

Virgin Money One Year Fixed Rate Cash Isa (Issue 296) 1.3% 
This account pays 1.3% on all balances above £1. Transfers must be made within 30 days of account opening. Open in branch, over the phone or by post.

Metro Bank One Year Fixed Rate Cash Isa (Issue 13) 1.25%
Can be opened with £1 and transfers from other Isa providers are accepted. Rate is fixed for one year and the account can be opened online, in branch or by telephone.

Bank of Cyprus UK One Year Fixed Rate Isa 1.22%
Savings here are protected up to £85,000 by the FSCS. This account can only be opened online with a balance of £500 or more.

Two year

Virgin Money Fixed Rate Cash Isa (Issue 297) 1.51%
Available in branch, by post and over the phone. This pays 1.51% and transfers are accepted from other Cash Isa providers.

BM Savings Two Year Fixed Rate Isa 1.5%
Available online or over the phone. This pays 1.5% and accepts transfers from other Cash Isa providers.

Metro Bank Two Year Fixed Rate Cash Isa 1.4%
This pick is available online, in branch or by telephone. This pays 1.4% and transfers are accepted from other Cash Isa providers.

Three year

Virgin Money Fixed Rate Cash Isa (Issue 298) 1.65%
Available in branch, by post and over the phone. This pays 1.65% and transfers are accepted from other Cash Isa providers.

Charter Savings Bank Three Year Fixed Rate Cash Isa 1.5%
Rate is fixed for 36 months and is available on balances over £1,000. Must be opened online.

Bank of Cyprus UK Three Year Fixed Rate Isa 1.42%
This offers a 1.42% rate on balances above £500. Account can be opened on the internet only. Transfers from other Isas are permitted and your savings here are protected up to £85,000 under the UK's Financial Services Compensation Scheme.

Five year

Virgin Money Fixed Rate Cash Isa (Issue 289) 2%
Fixed for five years at 2% and available in branch, by post, over the phone or online. Balances must be over £1.

Paragon Bank Five Year Fixed Rate Isa 1.95%
This pays 1.95% and can be opened online only. Transfers are accepted and the minimum balance is £500

Leeds Building Society Five Year Fixed Rate Isa (Issue 65) 1.75%
This five year fix offers a rate of 1.75% and can only be opened online, in branch or by post. Balances must be over £100.

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 3.25%
Accounts can be opened with a pound in branch, over the phone, online or by post. Interest is paid annually on 30 September.

Danske Bank Junior Cash Isa 3%
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.

Darlington Building Society Junior Cash Isa 3%
This account is available to all and can be opened in branch (located across County Durham and North Yorkshire) or by post. Minimum balance is £1.

Halifax Junior Cash Isa 3%
Transfers in are accepted and the minimum balance is £1. This account is openable in branch and online.

Nationwide Smart Junior Isa 3%
Also pays 3% 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. 

Tesco Junior Cash Isa 3%
Open this account with as little as £1. Tesco's Junior Cash Isa can be opened online and over the phone.

TSB Junior Cash Isa 3%
This branch-only account also offers a 3% rate of interest for young savers and accepts transfers from other accounts.

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.

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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?