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The best Cash ISAs for the 2015/16 tax year

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Last updated on

05 May 2015

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6 Comments

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news first: Cash ISA interest rates, like most savings rates, are pretty dire and some great rates have already been withdrawn or cut.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

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)

2.00%

£1

None

Transfers and new subscriptions.

Nationwide Flexclusive ISA

1.60%

£1

None

Transfers and new subscriptions.

 

Only available to Nationwide current account customers.

Skipton BS Online Bonus Cash ISA

1.50%

£1

0.5% for 12 months

New subscriptions only.

NS&I Direct ISA

1.50%

£1

None

New subscriptions only.

Kent Reliance Building Society Branch Easy Access Savings Issue 1 1.50% £1,000 None 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.

Top notice Cash ISAs

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

Account

Interest rate (AER)

Minimum deposit

Bonus

Notes

Al Rayan Bank Notice Cash ISA

2.02%*

£250

None

Transfers and new subscriptions.

120 days’ notice required for withdrawals.

Hinckley and Rugby BS 120-Day Notice Cash ISA

1.60%

£500

None

New subscriptions only.

120 days’ notice required for withdrawals.

*Anticipated 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

Punjab National Bank (International)

2.70%

£1,000

Five years

Transfers and new subscriptions.

Punjab National Bank (International)

2.50%

£1,000

Four years

Transfers and new subscriptions.

State Bank of India 

2.30%

£15,000

1,000 days

Transfers and new subscriptions.

Punjab National Bank (International)

2.30%

£1,000

Three years

Transfers and new subscriptions.

Punjab National Bank (International)

2.15%

£1,000

Two years

Transfers and new subscriptions.

Al Rayan Bank Fixed Term ISA

1.90%*

£1,000

12 months

Transfers and new subscriptions.

*Anticipated profit rate

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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