If you want to use your new Isa allowance early, here are the top cash Isa rates.
The 2015/16 tax year has now kicked off and that means you can save up to £15,240 tax free via a new Isa allowance.
So if you have savings that need a home where they can earn a tax-free return, and you want to save in cash, these are the top deals to go for right now.
Easy access
Let’s start with the Isas that don’t lock up access to your cash.
|
ISA |
Rate |
Minimum deposit |
Bonus |
Notes |
|
West Brom BS WeBSaveR Limited Access ISA |
1.55% |
£1,000 |
None |
Transfers and new subscriptions. |
|
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. |
|
Nationwide Flexclusive ISA |
1.50% |
£1 |
None |
New subscriptions only. Only available to Nationwide current account customers. |
|
Santander Direct ISA Saver |
1.50% |
£500 |
None |
Transfers and new subscriptions. Rate only available to Santander 123 World or Santander Select customers. |
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.
[Related story: Pension reforms: a guide to what's changing from April 2015]
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 |
1.60% |
£500 |
None |
New subscriptions only. 120 days’ notice for withdrawals. |
| Shawbrook Bank 120-Day Notice Cash ISA | 1.60% | £1,000 | None |
Transfers and new subscriptions. 120 days’ notice for withdrawals. |
*Anticipated profit rate
There are only three 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.
[Related story: Changes to taxes and benefits in the 2015/16 tax year]
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.
|
|
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 Cash ISA |
2.10% |
£1 |
Until 31st May 2019 |
New subscriptions. |
|
Virgin Money Fixed Rate Cash E-ISA/Metro Bank Fixed Rate Cash ISA/Aldermore/Norwich & Peterborough BS/Yorkshire BS/ Chelsea BS/Barnsley BS |
2.00% |
£1/£1/£1,000/£1,000/£1,000/£1,000/£1,000 |
Three years |
Transfers and new subscriptions. |
|
Al Rayan Bank Fixed Term ISA |
1.90%* |
£1,000 |
12 months |
Transfers and new subscriptions. |
*Anticipated profit rate