Best cash ISA rates – which cash ISAs pay the most interest?

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.

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. You can’t normally top them up or pay into them on a monthly basis.

Current best buys, according to savings website SavingsChampion.co.uk are as follows:

1 Year:

Aldermore

1 Year Fixed Rate Cash ISA

Pays: 0.55%

Min investment: £1,000

The small print: Withdrawals are allowed, subject to 90 days’ loss of interest. On maturity, your money can be returned to your nominated account, transferred to any other Personal Savings accounts you hold with us that allow deposits or transferred to another ISA provider.

Transfers in are allowed. This is a Flexible ISA. This is a portfolio ISA – so you can open more than one type of cash ISA with the provider (e.g. fixed and variable) in the same tax year. Interest is paid on maturity or monthly.

Find out more at: Aldermore

2 Year:

Shawbrook Bank

2 Year Fixed Rate Cash ISA Bond Issue 47

Pays: 0.70%

Min investment: £1,000

The small print: Withdrawals are allowed, subject to 180 days’ loss of interest. On maturity, the account is transferred to the Cash ISA Matured Funds account. Transfers in are allowed. This is not a flexible ISA.. Interest is paid annually or monthly.

Find out more at: Shawbrook Bank

3 Year:

UBL UK

3 Year Fixed Rate Cash ISA

Pays: 0.96%

Min investment: £2,000

The small print: Access on closure or full transfer out only, subject to 270 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA. Interest is paid on maturity, annually, quarterly or monthly. Interest must be paid to a nominated account, it cannot be added to the account unless it is paid on maturity.

Find out more at: UBL UK

5 Year:

UBL UK

5 Year Fixed Rate Cash ISA

Pays: 1.21%

Min investment: £2,000

The small print: Access on closure or full transfer out only, subject to 365 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA. Interest is paid on maturity, annually, quarterly or monthly. Interest must be paid to a nominated account, it cannot be added to the account unless it is paid on maturity.

Find out more at: UBL UK

Rates correct as at 07.06.21

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:

Cynergy Bank

Online ISA – Issue 12

Pays: 0.46%

Min investment: £1

The small print: Easy access. Transfers in accepted from other cash ISAs at the time of application. This is not a Flexible ISA. Interest is paid annually on the last working day of March. 

Find out more at: Cynergy Bank

Charter Savings Bank

Easy Access Cash ISA – Issue 21 

Pays: 0.45%

Min investment: £5,000

The small print: Easy access. Transfers in are allowed. This is not a flexible ISA, but this is a portfolio ISA – so you can open more than one type of cash ISA with the provider (e.g. fixed and variable) in the same tax year. Interest is paid annually or monthly.

Find out more at: Charter Savings Bank

Paragon

Triple Access ISA – Issue 4

Pays: 0.41%

Min investment: £1

The small print: Easy access. Interest is paid annually or monthly. Transfers in are allowed. This is a flexible ISA and also a portfolio ISA. If more than three withdrawals are made in a 12 month period, the rate payable will drop to 0.25% from the date of the fourth withdrawal, with the 12-month period resetting on the anniversary of the account opening date.

Find out more at: Paragon

Marcus by Goldman Sachs

Cash ISA

Pays: 0.40%

Min investment: £1

The small print: Easy access. Transfers in not accepted. This is not a flexible ISA. Interest is paid monthly.

Find out more at: Marcus by Goldman Sachs

Leeds Building Society

Defined Access Cash ISA

Pays: 0.40%

Min investment: £5,000

The small print: A maximum of four penalty-free easy access withdrawals are allowed per calendar year. Should you need further access to your funds, additional withdrawals can be made – each subject to 30 days’ loss of interest (including closure of the account). Interest is paid on the 30th of September each year. Transfers in from previous ISAs are accepted. This is not a flexible ISA.

Find out more at: Leeds Building Society

Rates correct as at 07.06.21 

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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