If you want to put your money into a cash ISA, which accounts pay the highest rates?
Cash ISAs work in much the same way as standard savings accounts, but the interest you earn is always tax-free. You can learn more about how they work and whether this type of account is suitable for you in our article How cash ISAs work.
Recent days have seen plenty of speculation that the Chancellor Rachel Reeves might be considering scrapping Cash ISAs in a bid to persuade more people to invest rather than leave their money in cash. However, even if such a move were to go ahead, it’s extremely unlikely that this would impact money already held in Cash ISAs.
Sarah Coles, head of personal finance, Hargreaves Lansdown, said; “Cash ISAs are flourishing under pressure. They had a record year in 2024, and now we’re seeing an early start to the Cash ISA season. With decent rates and frozen tax thresholds pushing more people into paying tax on their savings, it’s easy to see why.
“It’s ironic that at the same time, there has been so much speculation over the future of the Cash ISA. Everyone should hold some cash, but not too much, and getting the balance right is always tricky. However, reducing the tax incentives for the cash ISA isn’t the answer, and could expose diligent savers to tax.”
Here’s our rundown of some of the current best buy ISAs, and the returns they offer.
Fixed rate cash ISAs
You usually, but not always, get a higher rate of interest on fixed rate cash ISAs, which as the name suggests pay a fixed return for a set period of time. You normally can’t take money out of these accounts until the end of the term.
More importantly, you often only have a month or so to pay money into these accounts, once opened. You can’t normally top them up or pay into them on a monthly basis.
Current best buys, according to savings website The Private Office are as follows:
1 Year:
UBL
1 Year Fixed Rate Cash ISA
Pays: 4.53%
Min investment: £2,000
The small print: You can’t withdraw your money without incurring any charges until the end of the fixed term.
Find out more at: UBL
2 Year:
Furness Building Society
Double Access Saver ISA Issue 1
Pays: 4.40%
Min investment: £1,000
The small print: You need to make more than 2 withdrawals every year.
Find out more at: Furness Building Society
3 Year:
UBL
3 Year Fixed Rate ISA
Pays: 4.34%
Min investment: £2,000
The small print: You can’t withdraw your money without incurring any charges until the end of the fixed term.
Find out more at: UBL
5 Year:
Leek Building Society
5 Year Fixed Rate Cash ISA
Pays: 4.30%
Min investment: £1,000
The small print: You can’t withdraw your money without incurring any charges until the end of the fixed term.
Find out more at: Leek Building Society
Rates correct as at 07.04.2025
Variable rate cash ISAs
If you’d rather not tie up your cash savings, and prefer to have your money readily accessible in the event of an emergency, a variable rate cash ISA is likely to be your best bet.
Current best buy instant access cash ISAs include:
Tembo
Tembo Cash ISA
Pays: 4.80%
Minimum investment: £10
The small print: Interest accumulates daily, and is paid into your account every month.
Find out more at: Tembo*
Monument
Easy Access Cash ISA
Pays: 4.76%
Minimum investment: £10,000
The small print:Easy access ISA. Interest is paid monthly.
Find out more at: Monument
Moneybox
Open Access Cash ISA
Pays: 5.57%
Minimum investment: £500
The small print:A lower interest rate of 0.75% AER (variable) applies whenever your account balance is less than £500.
Find out more at: Moneybox
Kent Reliance
Cash ISA – Easy access – issue 55
Pays: 4.56%
Minimum investment: £1
The small print: Transfers and withdrawals are permitted without notice or penalty. Any funds withdrawn from the account cannot be subsequently replaced in the same tax year.
Find out more at: Kent Reliance
Charter Savings Bank
Easy Access Cash ISA – Issue 56
Pays: 4.55%
Minimum investment: £1
The small print: Interest will be paid one month after your initial deposit into your Account and on that day in every month after that.
Find out more at: Charter Savings Bank
Rates correct as at 07.04.2025
Remember…
Once you’ve chosen a cash ISA account, you can’t simply deposit your money and forget about it. Rates change constantly, so you’ll need to keep an eye on how much interest you’re earning and move your money if you can find better returns elsewhere.
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