Best Cash ISAs for the 2019/20 tax year


Updated on 02 July 2019 | 1 Comment

In this tax year, you can set aside another £20,000 of savings tax-free regardless of your tax bracket. Here are the best homes for your cash.

Should you get a Cash ISA or a savings account?

ISAs remain a good way to reduce your tax payments and interest rates have improved, particularly on easy access ISAs.

As you can only set up one new Cash ISA a year, it's important to pick the best one for your situation. 

Are Cash ISAs still worthwhile?

This year's ISA subscription limit is sitting at £20,000. It can be invested in a Cash, Stocks and Shares, Lifetime ISA and/or an Innovative Finance ISA.

Some might think there’s no point in saving into a Cash ISA anymore.

The Personal Savings Allowance (PSA) means you can earn up to £1,000 tax-free interest from any savings or current account, effectively negating the ISA's unique selling point.

You could potentially use standard savings accounts with much better interest rates.

But the humble Cash ISA still holds two attractive features for long-term savers.

It doesn't count towards your PSA and it's open to all savers.

Unfortunately, the PSA is not an option for additional-rate taxpayers and is capped at £500 for higher-rate taxpayers.

Of course, you could potentially earn a far better return and keep the tax-free benefits by investing in a Stocks and Shares ISA instead.

Yet not everyone is happy taking on the risk of investing in the stock market, while others might prefer a combination of the two.

Compare savings accounts, ISAs, and peer-to-peer investments (capital at risk)

Top instant-access Cash ISAs

These are the top rates on offer if you want to easily get your hands on your cash at any time.

ISA

Rate

Minimum deposit

Bonus

Notes

Access

Coventry Building Society Easy Access Cash ISA

1.5%

£1

Rate includes a fixed 0.35% until 31 August 2020

Transfers only

Online

Virgin Money Double Take E-ISA*

1.5%

£1

None

Transfers only

Online

Virgin Money Man Utd Double Take E-ISA*

1.5%

£1

United Rewards

Transfers only

Online

Shawbrook Bank Easy Access Cash ISA

1.43%

£1,000

None

Transfers only

Online

AA Easy Access Cash ISA

1.42%

£100

Rate includes a fixed bonus rate of 1.22% (for first 12 months)

Full transfers only

Online

*Two withdrawals allowed per year

Top notice Cash ISAs

Some accounts require you to give a little warning before you take money.

Account

Interest rate (AER)

Minimum deposit

Bonus

Notes

Access

Buckinghamshire Building Society

1.5%

£100

None

Transfers and new subscriptions

180 days’ notice required for withdrawals

By post, in branch

Charter Savings Bank

1.45%

£5,000

None

Transfers allowed

95 days’ notice for withdrawals

Online

Top fixed rate ISAs

Let's move onto fixed rate Cash ISAs, where you put your money away for a certain period of time.

Here are the best buys for each time period.

Account

Interest rate (AER)

Minimum deposit

Length of fixed rate

Notes

Access

Newcastle Building Society 5 Year Fixed Rate ISA

2.1%

£500

5 years

Transfers and new subscriptions

In branch, online

United Trust Bank 4 Year Cash ISA

2.05%

£15,000

4 years

Transfers and new subscriptions

Post

Charter Savings Bank 3 Year Fixed Rate ISA

1.87%

£5,000

3 years

Transfers allowed

Online

The AA 2 Year Fixed Rate Cash ISA

1.8%

£500

2 years

Transfers allowed

Online

Al Rayan Bank 2 Year Fixed Term Deposit Cash ISA

1.8%

£1,000

2 years

Transfers and new subscriptions

Online, phone, post or in branch

Secure Trust Bank 1 Year Fixed Rate Cash ISA

1.6%

£1,000

1 year

Transfers only

Online

Al Rayan Bank 12 Month Fixed Term Deposit Cash ISA

1.6%

£1,000

1 year

Transfers and new subscriptions

Online, phone, post or in branch

The longer you lock your money away, the better your rate will be.

The only risk you run is missing out on a potential interest rate rise before your fixed rate period is up.

ISA options

You can save some or all of your annual ISA allowance in a Cash ISA and earn interest tax-free.

But you also have the option of putting some or all of your allowance into a Stocks and  Shares ISA.

If you're new to this, you can read the Beginner's guide to Stocks & Shares ISAs for more information.

You can also put money in an Innovative Finance ISA (IFISA), which lets you keep returns on investments made via peer-to-peer loans tax-free.

There are also other options, if, for example, you want to save for your child's future or want to set money aside for retirement.

Take a look at The ultimate guide to ISAs for more information.

Compare savings accounts, ISAs, and peer-to-peer investments (capital at risk)

This article is regularly updated with the latest rate

 

  

More on ISAs and savings:

Top Cash ISAs for transfers

5 Lifetime ISA flaws – and how to fix them

Beginner's guide to stocks & shares ISAs

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