The best Cash ISAs

lovemoney staff
by Lovemoney Staff lovemoney staff on 04 April 2014  |  Comments 3 comments

If you haven't used up your ISA allowance for this tax year 2013/2014, here are the top Cash ISAs right now.

The best Cash ISAs

First the bad news: Cash ISA interest rates, like most savings rates, have been steadily falling.

This is mainly due to the Government's Funding for Lending scheme, which allows banks and building societies to borrow cheaply from the Bank of England. As a result, they don't need money from savers, so they've slashed their rates. For example, just last summer the top instant-access ISA was paying 2.25%. Now it's 1.65%.

There are signs that things may improve, as the Funding for Lending scheme is now targeted at lending to small businesses, rather than reducing mortgage rates. Indeed, since this announcement the rates on long-term fixed rate ISAs have improved slightly. 

Below we've picked out the best rates for new Cash ISAs for this tax year.

For the top ISAs that are only available to people who already have products with a financial institution or live in certain geographic areas, see The hidden best buy Cash ISAs. And if you're looking to transfer old ISA savings, you want Top Cash ISAs for transfers. If you're thinking about a stocks & shares ISA for the first time, have a read of Beginner's guide to stocks & shares ISAs.

Free ISA guides

Top instant-access Cash ISAs

The top instant-access ISA for this year we were able to find now is Nationwide's Flexclusive paying 1.75%, but this is limited to people who have a Nationwide current account (such as the FlexDirect or Flex account).

If you can get to a branch easily, Metro Bank has the top ISA that's available to all, paying 1.65%. If you want to open yours online, you're looking at Nationwide's Easy Saver or Santander's Direct ISA, both paying 1.60%.

Account

Interest Rate (AER)

Minimum deposit

Bonus

Notes

Nationwide BS Flexclusive ISA

1.75%

£1

None

New subscriptions only. Must hold Nationwide current account.

Metro Bank Instant Access Cash ISA

1.65%

£1

None

Transfers and new subscriptions.

Nationwide Easy Saver ISA

1.60%

£1

None

New subscriptions only.

Cheshire BS Easy Saver ISA

1.60%

£1

None

New subscriptions only.

Dunfermline BS Easy Saver ISA

1.60%

£1

None

New subscriptions only.

Derbyshire BS Easy Saver ISA

1.60%

£1

None

New subscriptions only.

Santander Direct ISA

1.60%

£500

1.10% for first year

Transfers and new subscriptions.

Sometimes instant-access accounts come with temporary bonuses. We’ve got no problem with fixed bonuses. They mean that your interest rate can’t fall below a certain level for a set period. That's not the case with a variable rate bonus though.

Just remember that the interest rate on your account will almost certainly crash once the bonus expires.

Check out the current accounts that beat the best savings accounts!

Top notice Cash ISAs

At the moment giving a little warning before making a withdrawal gets you a higher interest rate with the top notice ISAs.

Account

Interest Rate (AER)

Minimum deposit

Bonus

Notes

Principality BS Principality Promise ISA 1.80% £500 None

Transfers and new subscriptions.

30 days’ notice required for withdrawals.

Earl Shilton BS 90-Day Notice ISA

1.80%

£10

None

New subscriptions only. 90 days’ notice required for withdrawals.

Islamic Bank of Britain Sharia-compliant Notice Cash ISA

1.80%

£250

None

Transfers and new subscriptions.

120 days’ notice required for withdrawals.

Hinckley and Rugby BS 120-Day Notice Cash ISA

1.75%

£500

None

New subscriptions only. 120 days’ notice required for withdrawals.

Free ISA guides

Top fixed rate ISAs

Moving onto fixed rate ISAs, and interest rates here have actually marginally increased as the year has gone on, on longer-terms ISAs anyway.

With the Bank of England indicating that interest rates aren't likely to rise rapidly in the short term, it might be worth opting for a short-term fixed rate in order to get a better return.

If you have a Santander 123 current account, 123 credit card or you're a Select customer, you can take advantage of their 123 Fixed Rate ISA, which is paying 0.25% more than any of its open-to-all competitors.

Account

Interest rate (AER)

Minimum deposit

Length of fixed rate

Notes

Skipton BS Online Five-Year Fixed Rate ISA

3.00%

£500

Five years (fixed until 15th April 2019)

Transfers and new subscriptions.

Leeds BS Five-Year Fixed Rate ISA (being withdrawn on 4th April)

2.80%

£1

Five years (fixed until 30th April 2019)

Transfers and new subscriptions.

Coventry BS Fixed-Rate ISA

2.75%

£5,760

Three and a half years (fixed until 30th November 2017)

New subscriptions only.

Nationwide Fixed Rate ISA

2.40%

£1

Four years

Transfers and new subscriptions.

Halifax ISA Saver Fixed

2.40%

£500

Four years

Transfers and new subscriptions.

Santander 123 Fixed Rate ISA

2.30%

£500

Two years

Transfers and new subscriptions. Only available to 123 current account customers, 123 credit card customers and Select customers.

Nationwide Fixed Rate ISA

2.25%

£1

Three years

Transfers and new subscriptions.

Halifax ISA Saver Fixed

2.25%

£500

Three years

Transfers and new subscriptions.

Britannia Fixed Rate Cash ISA

2.10%

£1

Two years (fixed until 5th April 2016)

Transfers and new subscriptions. Must have Co-operative Bank or smile current account and have funded it with at least £800 for past three months and fund it with £800 each month from opening.

Nationwide Fixed Rate ISA

2.05%

£1

Two years

Transfers and new subscriptions.

Cheshire BS Fixed Rate Cash ISA

2.05%

£100

Two years

Transfers and new subscriptions.

Derbyshire BS Fixed Rate Cash ISA

2.05%

£100

Two years

Transfers and new subscriptions.

Dunfermline BS Fixed Rate Cash ISA

2.05%

£100

Two years

Transfers and new subscriptions.

Halifax ISA Saver Fixed

2.05%

£500

Two years

Transfers and new subscriptions.

Britannia Fixed Rate Cash ISA

2.05%

£5,760

Two years (fixed until 5th April 2016)

Transfers and new subscriptions.

Halifax ISA Saver Fixed

2.00%

£500

18 months

Transfers and new subscriptions.

Britannia Fixed Rate Cash ISA

1.90%

£5,760

One year (fixed until 5th April 2015)

Transfers and new subscriptions. Must have Co-operative Bank or smile current account and have funded it with at least £800 for past three months and fund it with £800 each month from opening.

Metro Bank Fixed Rate Cash ISA

1.75%

£1

One year

Transfers and new subscriptions.

Britannia Fixed Rate Cash ISA

1.71%

£1

One year

Transfers and new subscriptions.

Halifax ISA Saver Fixed

1.65%

£500

One year

Transfers and new subscriptions.

Kent Reliance BS Flexible Fixed Rate Cash ISA

1.65%

£1,000

One year

Transfers and new subscriptions.

The danger with locking your money away for five years in a fixed rate ISA is that rates may rise in just a couple of years' time.

Compare ISAs

This article is regularly updated with the latest rates

More on ISAs and savings:

Top Cash ISAs for transfers

Where to earn most interest on your cash

Beginner's guide to stocks & shares ISAs

The top fixed rate savings bonds 

Top instant access savings accounts

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Comments (3)

  • coloratura
    Love rating 81
    coloratura said

    Hardly worth wasting your money on the phone call for these extremely low rates - after all, how much tax will you be saving? Less than the phone call I expect. Once again the savers are the mugs !!!

    Report on 10 March 2014  |  Love thisLove  0 loves
  • nickpike
    Love rating 309
    nickpike said

    Is this some kind of joke? What's the point of reporting this? The interest rates are less than inflation. This isn't saving, it's losing. This is robbery of the working/ middle classes.

    Best put your money in a managed shares ISA.. They're making around 7% at present, and even paying tax above the ISA threshold, still better than the pathetic ISA's mentioned in this report. This is how my draw-down pension works.

    Why not do a report on managed share ISA's?

    Report on 05 April 2014  |  Love thisLove  0 loves
  • Simon Ward
    Love rating 8
    Simon Ward said

    http://www.lovemoney.com/news/savings-investments-pensions/isas/27162/stocks-shares-equity-isas-beginners-guide

    Report on 05 April 2014  |  Love thisLove  1 love

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