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:

Charter Savings Bank

1 Yr Fixed Rate Cash ISA

Pays: 0.61%

Min investment: £5,000

The small print: Withdrawals are allowed, subject to 150 days’ loss of interest. Interest is paid on maturity or monthly. Transfers in are not allowed.

Find out more at: Charter Savings Bank

2 Yr:

Charter Savings Bank

2 Yr Fixed rate cash ISA

Pays: 0.72%

Min investment: £5,000

The small print: Withdrawals are allowed, subject to 180 days’ loss of interest. Interest is paid on maturity or monthly. Transfers in are not allowed.

Find out more at: Charter Savings Bank

3 Yr:

The West Brom

3 Yr Fixed Rate Cash ISA

Pays: 0.75%

Min investment: £1,000

The small print: Withdrawals are allowed, subject to 90 days’ notice or loss of interest. Transfers in are allowed. Interest is paid annually.

Find out more at: The West Brom

5 Yr:

UBL

5 Yr Fixed Rate Cash ISA

Pays: 1.15%

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

Rates correct as at 06.01.21

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:

Al Rayan Bank

Instant Access Cash ISA (Issue 2)

Pays: 0.60%

Min investment: £50

The small print: Easy access. Transfers in are allowed. In order to comply with Sharia Law the rate shown is an ‘expected profit’ rate rather than an interest rate. This is paid monthly.

Find out more at: Al Rayan Bank

Chorley Building Society

90 Day Cash ISA

Pays: 0.60% on balances of £10,000 (lower rates payable on lower balances)

Min investment: £1

The small print: Withdrawals are subject to 90 days’ notice or loss of interest. Transfers in are allowed. Interest is paid at the end of each tax year on April 5.

Find out more at: Chorley Building Society

Charter Savings Bank

Easy Access Cash ISA Issue 19

Pays: 0.56%

Min investment: £5,000

The small print: Easy access. Transfers in are allowed. Interest is paid annually or monthly.

Find out more at: Charter Savings Bank

Aldermore

30 Day Cash ISA issue 10

Pays: 0.55%

Min investment: £1,000

The small print: Withdrawals are subject to 30 days’ notice or loss of interest. Transfers in are allowed. Interest is paid annually or monthly.

Find out more at: Aldermore Bank

 

Rates correct as at 06.01.21

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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