Best Cash Isa rates this week
24th June 2020 08:01
by Stephen Little from interactive investor
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If you're a UK taxpayer it's always worth considering a Cash Isa, even though most people can now get some savings interest tax-free.
The personal savings allowance means basic rate taxpayers can earn £1,000 interest tax free without using their Isa, and people who pay the 40% rate can get £500. Read our round-up of the best savings rates to find out more.
But remember that wrapping your money in an Isa means you won't need to worry about a future tax bill because your savings pot has grown and you're earning more than the tax-free threshold.
Everyone aged over 16 can save up to £20,000 in an Isa during the 2019/20 tax year.
Unless otherwise specified, all these banks are individually licenced by the FCA, so your savings will be covered by the Financial Services Compensation Scheme (FSCS) up to £85,000. All interest rates are AER - the annual equivalent rate.
Each week we select our Moneywise Best Buys, highlighting the best Cash ISA on the market.
Top easy access Isa
When picking an Isa, the first thing to decide is whether you want to fix your interest rate or opt for more flexibility with a variable rate. If you want to make additional deposits beyond the upfront opening deposit, or make withdrawals, then a variable rate Isa with easy access is probably most suitable for you.
Al Rayan Bank Instant Access Cash Isa 1.00%
You can open this account online with a deposit of £50. Open this account online with an initial deposit of £1,000. Note, this account's rate is an expected profit rate (EPR). Find out what this means in our guide.
NS&I Direct Isa 0.90%
This account can be opened online with a deposit of £1.
Virgin Money Double Take E-Isa 0.75%
Open this account online with a deposit of £1.
Best notice account Isas
Notice accounts need you to plan withdrawals in advance, but the rates can be higher than those offered by instant access in some cases.
Kent Reliance Cash Isa - 60 Day Notice 0.70%
Open this account online with a deposit of £1,000.
Monmouthshire Building Society 30 Day Notice Cash Isa 0.50%
Open this account online with a deposit of £10.
Top fixed rate Isas
If you want to secure the interest rate you earn on your savings, and are happy to lock your money away for a set period, then a fixed rate Cash ISA might be for you.
Best one-year Isas
Al Rayan Bank Instant Access Cash Isa 1.21%
Open this account online with an initial deposit of £1,000. Note, this account's rate is an expected profit rate (EPR). Find out what this means in our guide.
Virgin Money 1 Year Fixed Rate Cash Isa 0.75%
Open this account online for £1. Term - 24/06/2021.
Gatehouse Bank 1 Year Fixed Term Cash Isa 1.00%
This account can be opened online with a deposit of £1,000. Note, this account's rate is an expected profit rate (EPR). Find out what this means in our guide.
Best two-year Isas
Al Rayan Bank Instant Access Cash Isa 1.41%
Open this account online with an initial deposit of £1,000. Note, this account's rate is an expected profit rate (EPR). Find out what this means in our guide.
Gatehouse Bank 2 Year Fixed Term Cash Isa 0.95%
This account can be opened online with a deposit of £1,000. Note, this account's rate is an expected profit rate (EPR). Find out what this means in our guide.
Paragon Bank 2 Year Fixed Rate Cash Isa 0.86%
Opne this account online with a deposit of £500.
Best three-year Isas
Gatehouse Bank 3 Year Fixed Term Isa 1.00%
Open this account online with a deposit of £1,000. Note, this account's rate is an expected profit rate (EPR). Find out what this means in our guide.
Paragon Bank 3 Year Fixed Rate Cash Isa 0.90%
This account can be opened online with a deposit of £500.
Virgin Money 3 Year Fixed Rate Cash E-Isa 0.90%
You can open this account online with a deposit of £1.
Top five-year Isas
Shawbrook Bank 5 Year Fixed Rate Cash Isa 1.10%
Open this account online with a deposit of £1,000
Gatehouse Bank 5 Year Fixed Term Cash Isa 1.05%
This account can be opened online with a deposit of £1,000. Note, this account's rate is an expected profit rate (EPR). Find out what this means in our guide.
Paragon Bank 5 Year Fixed Rate Cash Isa 1.00%
You can open this account online with a deposit of £500.
Best Junior Isas
If you're looking to put some cash aside for your kids, Junior ISAs are a great way of doing so. These accounts are available to anyone under 18 and tend to offer much higher rates than adult accounts, but there are some restrictions. Read the Moneywiseguide to Junior Cash ISAs to find out more.
NS&I Junior Cash Isa 3.25%
Minimum balance is £1. This account is available to all and can be opened online. Savings are fully protected up to £85,000 by the FSCS.
Tesco Bank Junior Cash Isa 3.15%
Open this account online with a deposit £1.
How are Moneywise Best Buys selected?
We look across as much of the market as possible to find the best deals using industry data from Defaqto.
All our picks are nationally available - online, by post or by phone. We try and pick products that are available to both new and existing customers, but we’ll highlight some offers for existing customers if they’re much better than what else is on offer.
Unless rates are significantly higher than on other accounts, we avoid products that pay an initial bonus (which is normally a euphemism for a rate cut after 12 months), or those with tiered rates (these may not pay the advertised interest rate if your balance rises above or falls below a set amount).
Deals only available to particular age groups or for “additional subscriptions” are also not included.
All these savings accounts are covered by the FSCS unless otherwise specified. We will prioritise deals from UK-based banks. If your bank is licenced by another European country, savings up to €100,000 will be protected, but by the government where the bank is headquartered, rather than the UK authorities.
We reserve the right to use our discretion at all times.
This article was originally published in our sister magazine Moneywise, which ceased publication in August 2020.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.