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The best Cash ISAs for the 2015/16 tax year

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If you want to use some or all of your ISA allowance for this tax year, here are the top Cash ISAs right now.


If you're looking to use your Cash ISA allowance, then you're in the right place. However, there’s some bad news first: Cash ISA interest rates, like most savings rates, are pretty dire and some great rates have already been withdrawn or cut.

The good news is you're now able to save £15,240 this tax year into a Cash ISA.

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.

Compare Cash ISAs

Popular ISA rate crashes: what should you do?

Savings rates for over 400,000 National Savings & Investments (NS&I) savers on the Direct ISA fell from 1.5% to 1.25% a year this week. It's the lowest savings rate since NS&I launched the Direct ISA back in 2008.

NS&I is backed by the government, and so is in the unusual position of not wanting to top the savings tables too often, for fear of destabilising the rest of the market. However, it had done exactly that for some time, which is one reason why the rate has now been cut so sharply.

So if you are one of the thousands facing a dent in your savings return, where should you move your cash? 

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

Punjab National Bank (International) Limited Variable Rate Cash ISA

1.65%

£1

None

Transfers and new subscriptions.

Nationwide Flexclusive ISA

1.60%

£1

None

Transfers and new subscriptions.

Only available to Nationwide current account customers.

Virgin Money Defined Access E-ISA

1.56%

£1

None

Transfers and new subscriptions.

 

Post Office Money Online ISA Easy Access Issue 3

1.51%*

£100

None

Transfers and new subscriptions

*Rate includes 0.86% bonus for first 12 months 

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.

Top notice Cash ISAs

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

Account

Interest rate (AER)

Minimum deposit

Bonus

Notes

Al Rayan Bank Notice Cash ISA

1.80%*

£250

None

Transfers and new subscriptions.

120 days’ notice required for withdrawals.

The Mansfield Building Society 60-Day Notice Cash ISA Account

1.55%

£1

None

New subscriptions only.

60 days’ notice required for withdrawals.

*Expected profit rate

Top fixed rate ISAs

Moving onto fixed rate ISAs, which lock up your money for a certain period of time.

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 one- or two-year fixed rate in order to get a better return with the option to exit in the not too distant future.

Here are the best buys ordered by interest rate.

Account

Interest rate (AER)

Minimum deposit

Length of fixed rate

 Notes

UBL Fixed Rate Cash NISA Five-Year Fixed ISA

2.55%

£2,000

Five years

Transfers and new subscriptions.

Leeds BS Fixed Rate ISA

2.35%

£100

Four years

Transfers and new subscriptions.

Punjab National Bank (International) Limited Three-Year Fixed Cash ISA

2.30%

£1,000

Three years

Transfers and new subscriptions.

Coventry Building Society Two-Year Fixed Rate ISA (31)

2.05%

£1

Two years

New subscriptions only.

Shawbrook Bank One Year Fixed Rate Cash ISA Bond Issue 11

1.95%

£5,000

One year

Transfers and new subscriptions.

Even though they have significantly higher interest rates, beware of the risk that come from five-year bonds. The danger with locking your money away for longer is that rates may rise in just a couple of years' time, leaving you stuck with an uncompetitive account.

Compare Cash ISAs

This article is regularly updated with the latest rates

More on ISAs and savings:

Top Cash ISAs for transfers

The top fixed rate savings bonds 

Beginner's guide to stocks & shares ISAs

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