The 2015/16 tax year has begun, meaning a new ISA allowance of up to £15,240 in a Cash ISA.
So if you have savings that need a home where they can earn a tax-free return, these are the top deals to go for.
Easy access
Let’s start with the ISAs that don’t lock up access to your cash.
|
ISA |
Rate |
Minimum deposit |
Bonus |
Notes |
|
HSBC Loyalty Cash ISA |
1.60% |
£1 |
1.09% for 12 months |
Transfers and new subscriptions.
Top rate only available to HSBC Premier current account customers. |
|
1.50% |
£1 |
0.5% for 12 months |
New subscriptions only. |
|
|
NS&I Direct ISA |
1.50% |
£1 |
None |
New subscriptions only. |
|
Nationwide Flexclusive ISA |
1.50% |
£1 |
None |
New subscriptions only.
Only available to Nationwide current account customers. |
|
Post Office Money Online ISA – Easy Access Issue 1 |
1.50% |
£100 |
0.85% for 12 months |
Transfers and new subscriptions. |
|
Santander Direct ISA Saver Issue 10 |
1.50% |
£500 |
None |
Transfers and new subscriptions.
Rate only available to Santander 123 World or Santander Select customers. |
As you can see, the top return on an easy access ISA pays 1.60%, but it’s reserved for HSBC Premier current account customers. Other HSBC current account holders get a lower rate.
The next best rate open to all is 1.50% from Skipton Building Society and NS&I. These accounts can be opened with £1 but transfers of previous years’ allowances aren’t permitted.
Three of the accounts mentioned pay bonuses for the first year. The plus side of a bonus is that you get a better rate at the start. However, you do need to make a note of when your bonus ends as you’ll need to move your cash to a new ISA to avoid suffering a big drop in the interest rate.
Notice Cash ISAs
With a notice savings account, you give up access to your cash for a small period in exchange for (in theory) an improved interest rate.
|
ISA |
Rate |
Minimum deposit |
Bonus |
Notes |
|
Al Rayan Bank Notice Cash ISA |
2.00%* |
£250 |
None |
Transfers and new subscriptions.
120 days’ notice for withdrawals. |
|
Hinckley and Rugby 120-Day Notice Cash ISA Issue 2 |
1.60% |
£500 |
None |
New subscriptions only.
120 days’ notice for withdrawals. |
*Anticipated profit rate
There are only two notice Cash ISAs that beat the rates available on easy access alternatives.
The top deal from Al Rayan Bank pays 2% - a third more than the top easy access account open to all, but you’ll need to give 120 days’ notice before you can get access to any of your cash.
Top fixed rate ISAs
The rates on easy access and notice Cash ISAs aren’t exactly high enough to set the heart racing.
If you want to get a better return, then locking your cash up for a longer period in a fixed rate Cash ISA may be the answer.
Here are the top deals across each term right now.
|
ISA |
Rate |
Minimum deposit |
Term |
Notes |
|
State Bank of India Cash ISA Fixed Deposit Account |
2.50% |
£15,000 |
Five years |
Transfers and new subscriptions.
|
|
Virgin Money Fixed Rate Cash ISA |
2.35% |
£1 |
Fixed until 24th April 2020 |
Transfers and new subscriptions.
|
|
State Bank of India Online 1,000 Day Cash ISA Deposit |
2.30% |
£15,000 |
1,000 days |
Transfers and new subscriptions.
|
|
Coventry BS Fixed Rate ISA (26) |
2.25% |
£1 |
Fixed until 31st May 2019 |
New subscriptions only. |
|
Yorkshire BS / Norwich & Peterborough/ Chelsea/ Barnsley BS Fixed Rate ISA |
2.15% |
£100 |
Fixed until 31st March 2018 |
Transfers and new subscriptions.
|
|
Yorkshire Bank / Clydesdale Bank Cash ISA Fixed Rate Bond |
2.10% |
£2,000 |
Fixed until 28th April 2017 |
Transfers and new subscriptions.
|
|
Al Rayan Bank 12-Month Term Deposit ISA |
1.90% |
£1,000 |
One year |
Transfers and new subscriptions.
|