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Top cash ISAs 2024/25
Up to 5.17% easy access or up to 4.47% fixed
A cash ISA is just a savings account where you'll never pay tax on the interest – and in the 2024/25 tax year, you can put up to £20,000 into one or more if you're 18 or over. This guide helps you decide if you need an ISA, plus has all the top picks.
Other MSE savings guides...
Top savings accounts: The top-paying normal savings
Regular savings: Up to 8% interest if you can save monthly
Children's savings: Earn 5.8% on kids' savings
Current accounts: Get up to 6% on smaller sums
Some ISA rules have changed. On 6 April, the UK Government made some changes to the ISA rules. These include:
- The minimum age you can open a cash ISA increased from 16 to 18.
- You can now subscribe to multiple ISAs of the same type within the same tax year.
- Partial transfers of current year ISA subscriptions are now allowed.
What is a cash ISA?
Cash ISAs are just savings accounts you NEVER pay tax on. Everyone in the UK aged 18 or over gets an ISA allowance at the start of each tax year – for 2024/25, which ends on 5 April 2025, it's £20,000.
Just like normal savings, cash ISAs come in different types. There's easy access, where you withdraw whenever you want, and fixed rate, where you get a guaranteed rate but are supposed to lock cash in for a set time.
Who are ISAs best for?
Since 2016, the personal savings allowance (PSA) means you get a tax-free amount of interest, earnable in any savings...
- Basic 20% rate taxpayers can earn up to £1,000/year interest tax-free
- Higher (40%) rate taxpayers can earn £500/year tax-free
- Top (45%) rate taxpayers don't get a PSA
Remember, that's the interest you can earn, so you need a lot of savings to generate it. And with very low savings interest rates between 2016 and 2022, very few paid tax on savings interest. At one point, you needed around £250,000 in top easy-access savings to generate it.
But, now rates have risen, basic rate taxpayers only need around £20,000 in normal savings to pay tax on it, and higher-rate around £10,000...
If you don't have this much, then as cash ISAs usually pay less interest than normal savings, you should opt for a standard savings account. Those who should consider opening (or keeping) a cash ISA are those who:
- Already pay tax on savings interest. Here opening a cash ISA rather than saving in normal savings is a no brainer.
- Are near the limit where you'll earn enough interest to pay tax on interest. If that's the case, money in cash ISAs now could protect you from future tax.
- Are happy to lock cash away but may just need to access it. Fixed cash ISAs must let you withdraw money (for a big interest penalty). Normal savings accounts lock your money away with no access.
Might I still be better off in normal savings even if I pay tax?
Some simple maths can help you compare. Take the rate on the ISA you're looking at and multiply it by:
- 1.25 if you're a basic-rate taxpayer
- 1.66 if you're higher-rate taxpayer
- 1.82 if you're a top-rate taxpayer
The result of that sum is the rate you need to get on normal savings for it to be the winner. If normal savings don't pay more than that, then you're better off in the cash ISA.
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Cash ISA need-to-knows
To help you work out if opening a cash ISA is right for you, it's worth getting your head around the following need-to-knows...
Top easy-access cash ISAs
Easy-access cash ISAs let you take out your money when you want, without penalty – so are a good option if you know you'll be dipping into your savings, or you're not sure. There are some important things to note about ISAs which differ from standard savings accounts...
- Only some cash ISAs are flexible – meaning you can replace cash withdrawn from them in the same tax year into the same cash ISA without it using up your year's ISA limit. If a cash ISA isn't flexible, all deposits count towards your ISA allowance, irrespective of any withdrawals. We make it clear which cash ISAs are and aren't flexible in our table below.
- Rates on these accounts are variable, which means they can go up or down. You'll be notified of any change, but you should regularly check the table below for the current top payer. If your account is lagging behind, you may be able to transfer to a new cash ISA, though it works differently to switching a standard savings account...
If you want to transfer, don’t withdraw your cash and transfer it manually. You'll lose all tax benefits if you do. Instead, speak to the new provider and fill in an ISA transfer form. Your new provider will then move the money over for you – keeping your ISA cash permanently tax-free. We make it clear which providers don't allow transfers in our table below.
With easy-access cash ISAs, interest is usually paid into the account either monthly or annually. If you choose an account which pays interest annually, you won't be able to use the interest until the year's up – so there's a long wait. If you'd prefer to use it sooner, for example if you want a monthly income stream from your interest, choose an account which offers a monthly option.
If you'd rather a guaranteed interest rate, you may need to sacrifice this flexibility and lock cash away in a fixed cash ISA.
Easy-access cash ISAs – what we'd go for
Unusually, top easy-access cash ISAs currently pay more than top easy-access savings – so even if you don't need the tax benefits of an ISA, you may want to opt for one anyway while rates are competitive.
Two cash ISAs currently pay head and shoulders above the rest with a top rate of 5.17%. Trading 212's account has a minimum deposit of £1 and allows unlimited withdrawals, while app-based Moneybox requires £500 minimum deposit and limits you to three penalty-free withdrawals per year, plus the rate drops after 12 months (more info in the links).
Prefer an established name? You’ll need to sacrifice on rate if you want a big name, as top-payer Leeds BS' 4.55% is considerably lower. If you do go for it, the account matures after roughly a year, at which point your savings are transferred to a different account, likely paying a much lower rate – so diarise for then to ditch and switch.
Top Cash ISAs. All have the full £85,000 savings protection. |
|
Top paying accounts(In rate order – see what we'd go for) |
Top well-known name accounts(As many tell us you prefer names you know) |
Trading 212, 5.17% (click for info) - Min £1 - Open online or via app - Interest paid: daily - Is a flexible ISA - Withdrawals may take three working days |
Leeds BS, 4.55% (matures 30 Nov 26) - Min £1,000 - Open online - Interest paid: annually - Not a flexible ISA |
Only three penalty-free withdrawals per year, includes a fixed 0.45% bonus for 12 months, new customers only Moneybox, 5.17% (click for info) - Min £500 - Open via app - Interest paid: annually - Is not a flexible ISA |
Only three penalty-free withdrawals per year Virgin Money, 4.51% - Min £1 - Open online - Interest paid: monthly or annually - Is not a flexible ISA |
Only two penalty-free withdrawals per year Paragon Bank, 4.87% - Min £1,000 - Open online - Interest paid: monthly or annually - Is a flexible ISA |
Yorkshire BS, 4.3% - Min £1 - Open online - Interest paid: annually - Is a flexible ISA
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Only five penalty-free withdrawals per year, includes variable 1.55% bonus for 12 months Principality BS, 4.85% - Min £1 - Open online - Interest paid: annually - Is a flexible ISA |
Includes a fixed 2.85% bonus for 12 months Post Office*, 4.3% - Min £100 - Open online - Interest paid: annually - Is not a flexible ISA |
Quick question
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Top fixed-rate cash ISAs
Fixed-rate savings are designed to lock money away for a set period and offer rate security in return. Yet by law, cash ISA providers MUST allow you to access your money. However, some require you to close the account or transfer out to get your cash. And most will levy heavy penalties on withdrawals – anywhere between 60 and 365 days' worth of interest.
If you're opening a fixed cash ISA, you'll usually need to put the amount you're saving in it within two-to-four weeks, though it varies across providers and sometimes they give you longer. So if you want to use up your annual £20,000 ISA allowance each year, you'll need an easy-access ISA or to open additional fixed accounts each tax year.
Already have a fixed-rate ISA? Rates have shot up recently, and, since ISAs let you withdraw early for an interest penalty, it may be better to switch. Use our ISA switching calc to check.
Fixed-rate cash ISAs – what we'd go for
Currently, one- and two-year fixed rates are decently higher than three- and five-year rates – so there's little incentive to lock in for longer, unless you want absolute certainty of returns over a longer period. And remember, if you don't need the tax benefits of an ISA, normal savings pay higher rates.
Shawbrook Bank offers the top one-year fixed-rate at 4.47% and two-year fixed-rate at 4.32%. Both accounts have a minimum deposit of £1,000 and can be opened online.
If you'd like to fix for longer, UBL UK pays the top rate for a three-year fix at 4.31% (min £2,000) with options for interest to be paid monthly, quarterly, annually or at maturity. Or for a five-year fix, West Brom BS pays the top rate at 4.12% (min £1) with options of interest paid annually or at maturity.
Prefer an established name? Leeds BS pays the top one- and two-year fixed rates at 4.25% and 4.05% respectively. Both accounts can be opened online, by post or in branch, with £100 or more.
Provider | Rate – AER (min deposit) | Can I transfer in? | Penalty to withdraw? | How to open? | When can I access interest? |
Shawbrook Bank | 4.47% (min £1,000) |
Yes, at application | 90 days' interest | Online | Monthly or at maturity |
---|---|---|---|---|---|
Cynergy Bank | 4.46% (min £500) |
Yes | 180 days' interest | Online | At maturity |
Kent Reliance | 4.46% (min £1,000) |
Yes | 90 days' interest | Online/ branch | At maturity |
Top rates from a big name. Lower rates, but a possible voucher on offer. | |||||
(matures 1 Dec 25) |
4.25% (min £100) |
Yes | 90 days' interest | Online/ post/ branch | At maturity |
Tesco Bank | 4.1% (min £1) |
Yes | 90 days' interest | Online/ app/ phone | At maturity |
(matures 1 Nov 25) |
4.01% + £50 voucher for some (min £500) |
Yes | 120 days' interest | Online/ app/ branch | At maturity |
Provider |
Rate – AER (min deposit) | Can I transfer in? | Penalty to withdraw? | How to open? | When can I access interest? |
Shawbrook Bank | 4.32% (min £1,000) |
Yes, at application | 180 days' interest | Online | Monthly, annually or at maturity |
---|---|---|---|---|---|
Hodge Bank | 4.31% (min £1,000) |
No | 180 days' interest | Online | Monthly, annually or at maturity |
Castle Trust Bank | 4.31% (min £1,000) |
Yes, at application | 180 days' interest | Online/ app | At maturity |
Top rates from an established name. Lower rates, but possible voucher on offer. | |||||
(matures 30 Nov 26) |
4.05% (min £100) |
Yes | 180 days' interest | Online/ post/ branch | Annually or at maturity |
(matures 1 Nov 26) |
3.81% + £50 voucher for some (min £500) |
Yes | 120 days' interest | Online/ app/ branch | At maturity |
Provider | Rate – AER (min deposit) | Can I transfer in? | Penalty to withdraw? | How to open? | When can I access interest? |
UBL UK | 4.31% (min £2,000) |
Yes | 270 days' interest | Online/ app/ post/ branch | Monthly, quarterly, annually or at maturity |
---|---|---|---|---|---|
United Trust Bank | 4.3% (min £5,000) |
Yes | 270 days' interest | Online | Annually or at maturity |
Hodge Bank | 4.27% (min £1,000) |
No | 270 days' interest | Online | Monthly, annually or at maturity |
Top rate from an established name. As we know some prefer to save with bigger brands. | |||||
(matures 30 Nov 27) |
3.85% (min £100) |
Yes | 240 days' interest | Online/ post/ branch | Annually or at maturity |
Provider | Rate – AER (min deposit) | Can I transfer in? | Penalty to withdraw? | How to open? | When can I access interest? |
(matures 30 Nov 29) |
4.12% (min £1) |
Yes | 365 days' interest | Online/ post/ branch | Annually or at maturity |
---|---|---|---|---|---|
Shawbrook Bank | 4.12% (min £1,000) |
Yes, at application | 360 days' interest | Online | Monthly, annually or at maturity |
United Trust Bank |
4.12% (min £5,000) |
Yes | 365 days' interest | Online | Annually or at maturity |
Top rate from an established name. As we know some prefer to save with bigger brands. | |||||
(matures 3 Dec 29) |
3.5% (min £100) |
Yes | 365 days' interest | Online/ post/ branch | Annually or at maturity |
Halifax | 3.2% (min £500) |
Yes | 365 days' interest | Online/ app/ phone/ branch | Monthly, annually or at maturity |
The ISA Savings Calculator
No matter what you're saving for, this calculator can help you work out how much you'll save by a certain date, based on your account's interest rate, how long it'll take you to set aside your target amount, and what you need to put away each month to hit a certain figure.
When using the calculator, use the AER (annual equivalent rate) for increased accuracy. It should be listed on your statement. As most accounts' interest rates are variable, obviously the answers will change if the rate does, so only use the calculator to get a rough indication of your likely outcome.
The calculator assumes you put money in at the beginning of each month, so if this isn't how you do it, the answers will be ever-so-slightly out. If you don't make regular deposits but put in lump sums, figure out the monthly equivalent for a rough answer. Feel free to play with the results to see how your savings are affected.
Want to complain about your savings provider?
If your savings provider has given you the incorrect interest rate, or you haven't received your interest at all, then you don't have to suffer in silence.
It's always worth trying to call your provider first to see if it can help, but if not, you can use free complaints tool Resolver. The tool helps you manage your complaint, and if the company doesn't play ball, it also helps you escalate your complaint to the free Financial Ombudsman Service.
Cash ISA FAQs
Here are some common ISA-related queries. If you've got a question we've not answered below or in the text above, suggest a question in the MSE Forum.
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We put all new info in the free weekly MSE Money Tips email, so sign up now and join millions of others in saving money.
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