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 here.

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 Yr:

Aldermore

1 Yr Fixed Rate Cash ISA

Pays: 0.80%

Min investment: £1,000

The small print: Withdrawels are allowed, subject to 90 days’ loss of interest. Interest is paid on maturity or monthly.

Find out more at: Aldermore

2 Yr:

Yorkshire Building Society

Fixed rate cash ISA until 30.10.22

Pays: 0.90%

Min investment: £100

The small print: Access on closure only, subject to 120 days’ loss of interest. Interest paid annually.

Find out more at: Yorkshire Building Society

3 Yr:

UBL

3 Yr Fixed Rate Cash ISA

Pays: 1.10%

Min investment: £2,000

The small print: You can only access your money if you close the account or transfer to a new provider and you will lose 270 days’ interest. Interest can be paid annually, quarterly or monthly.

Find out more at: UBL

5 Yr:

UBL

5 Yr Fixed Rate Cash ISA

Pays: 1.40%

Min investment: £2,000

The small print: You can only access your money if you close the account or transfer to a new provider and you will lose 365 days’ interest. Interest can be paid annually, quarterly or monthly.

Find out more at: UBL

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:

Coventry Building Society

Triple Access ISA Online

Pays: 0.96%

Min investment: £1

The small print: You can make up to three withdrawals a year penalty-free. You’ll lose 50 days’ interest on any subsequent withdrawals.

Find out more at: Coventry Building Society

Yorkshire Building Society

Six Access e-Saver ISA

Pays: 0.91% on balances of £10,000 (lower rates payable on lower balances)

Min investment: £1

The small print: Allows six withdrawals per year plus closure. Interest paid on 31 March each year.

Find out more at: Yorkshire Building Society

Principality Building Society

Web ISA Issue 4

Pays: 0.80%

Min investment: £1

The small print: Easy access. Interest paid on 6 April every year.

Find out more at: Principality Building Society

Leeds Building Society

Limited Issue Online Access ISA Issue 27

Pays: 0.80%

Min investment: £1,000

The small print: Easy access. Account matures on 30 November 2021

Find out more at: Leeds Building Society

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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