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:

Paragon

1 Year Fixed Rate Cash ISA

Pays: 0.45%

Min investment: £500

The small print: Withdrawals are allowed, subject to 90 days’ loss of interest. Transfers in are allowed. This is a portfolio ISA. This is a flexible ISA. On maturity, the account is transferred to the Easy Access cash ISA available at the time. Interest is paid on maturity or monthly.

Find out more at: Paragon

2 Yr:

Charter Savings Bank

2 Year Fixed Rate Cash ISA

Pays: 0.62%

Min investment: £5,000

The small print: Withdrawals are allowed, subject to 180 days’ loss of interest. Transfers in are allowed. This is not 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 annually or monthly.

Find out more at: Charter Savings Bank

3 Yr:

Charter Savings Bank

3 Year Fixed Rate Cash ISA

Pays: 0.75%

Min investment: £5,000

The small print: Withdrawals are allowed, subject to 210 days’ loss of interest. Transfers in are allowed. This is not 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 annually or monthly.

Find out more at: Charter Savings Bank

5 Yr:

Skipton Building Society

5 Year Fixed Rate Cash ISA Issue 148

Pays: 1.00%

Min investment: £500

The small print:

Access on closure only, subject to 365 days’ loss of interest. Transfers in are allowed. This is not a flexible ISA. This is not a portfolio ISA. Interest is paid annually or monthly. An online version is also available at the same rate.

Find out more at: Skipton Building Society

Rates correct as at 26.03.21

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:

Yorkshire Building Society

Annual Access Account ISA Issue 4

Pays: 0.45%

Min investment: £100

The small print: The Annual Access Account ISA account allows withdrawals from your account, without losing any interest, on any one day per year based on the anniversary of account opening. You can close the account at any time. Transfers in are allowed. This is a flexible ISA. Interest is paid annually. On the anniversary of your account opening your savings will be transferred to the latest issue of the Easy ISA.

Find out more at: Yorkshire Building Society

Charter Savings Bank

Easy Access Cash ISA – Issue 20

Pays: 0.40%

Min investment: £5,000

The small print: Easy access. Transfers in are allowed. This is not 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 annually or monthly.

Find out more at: Charter Savings Bank

Paragon

Triple Access Cash ISA – Issue 3

Pays: 0.40%

Min investment: £1

The small print: Easy access. Interest is paid annually or monthly. Transfers in are allowed. This is a flexible ISA. This is a portfolio ISA. If more than 3 withdrawals are made in a 12 month period, the rate payable will drop to 0.25% from the date of the 4th withdrawal, with the 12 month period resetting on the anniversary of the account opening date.

Find out more at: Paragon

Yorkshire Building Society

Six Access e-Saver ISA Issue 5

Pays: 0.40%

Min investment: £10,000

The small print: Easy access. Allows withdrawals on 6 days per year plus closure. This is a flexible ISA. Interest is paid on 31 March each year.

Find out more at: Yorkshire Building Society

Rates correct as at 26.03.21

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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