For those wanting to make tax-free interest on cash savings up to £20,000 in this new tax year there are some good rates out there to entice savers in.
Instant access cash ISA rates are over five percent on the top paying accounts meaning you could make hundreds of pounds in interest if you’re investing large amounts.
Half of the top paying instant access cash ISAs require you to use their apps to get the highest rate, with Plum, Moneybox, Chip and Zopa all offering more than five percent interest to those who use their apps.
The rise in app-only banks means that those not willing to add another app to their device, or those who don’t use smartphones and apps at all, won’t be getting the best rates on the market.
The current best instant access cash ISAs (data provided by Defaqto) are:
| Provider | Product | Interest Rate (AER) | Minimum Initial Deposit | Access |
|
Plum |
Citi Bank - Cash ISA |
5.17% |
£1 |
app only |
|
Moneybox |
Cash ISA |
5.16% |
£500 |
app only |
|
Chip |
Clearbank - Cash ISA |
5.10% |
£1 |
app only |
|
Zopa |
Smart ISA Access ISA Pot |
5.08% |
£1 |
app only |
|
Cynergy Bank |
Online ISA (Issue 45) |
4.90% |
£1 |
online |
|
The Family Building Society |
Market Tracker Cash ISA (2) |
4.86% |
£500 |
branch, post or online |
|
Principality Building Society |
Online Bonus ISA (Issue 5) |
4.85% |
£1 |
online |
|
Virgin Money |
Defined Access Cash E-ISA (Issue 27) |
4.85% |
£1 |
online |
Katie Brain, Consumer Banking Expert at Defaqto, said: “These best buys are a great starting point for those looking at a cash ISA; however savers must look beyond the headline interest rate when choosing an account. Start with looking into all the top paying accounts to check the terms and any particular exclusions or conditions of an account to find the right one for you. It might not be the one with the highest interest rate that will get you the best return. For example, depending how long you plan to save for, an account with a high introductory rate that decreases over time, may mean you would be better off investing with one at a slightly lower rate which isn’t introductory.
“Some require a minimum deposit of £500 or £1,000 whilst others - including Plum and Chip which are both currently offering some of the best rates on the market - will want you to open an account with them before opening the cash ISA account. Some of the instant access accounts may also lower your rate if you make too many withdrawals in one year, for example 3 withdrawals per year. So if you need to dip in and out of your money, then these accounts might not work for you.”
The current best fixed or tracker cash ISAs (data provided by Defaqto) are:
|
Term |
Provider |
Product |
Interest Rate (AER) |
Minimum Initial Deposit |
|
1 Year |
Shawbrook Bank |
1 Year Fixed Rate Cash ISA Bond (Issue 92) |
4.76% |
£1,000 |
|
OakNorth Bank |
12 Month Personal Fixed Rate Cash ISA |
4.75% |
£1 |
|
|
2 Year |
Marsden |
Tracker Cash ISA Bond (Issue 2) |
5.15% |
£5,000 |
|
OakNorth Bank |
24 Month Personal Fixed Rate Cash ISA |
4.62% |
£1 |
|
|
3 Year |
OakNorth Bank |
36 Month Personal Fixed Rate Cash ISA |
4.39% |
£1 |
|
UBL UK |
3 Year Fixed Rate Cash ISA |
4.39% |
£2,000 |
|
|
5 Year |
UBL UK |
5 Year Fixed Rate Cash ISA |
4.16% |
£2,000 |
|
Nottingham Building Society |
Fixed Rate ISA (Issue 180) |
4.05% |
£500 |
Katie Brain, Consumer Banking Expert at Defaqto, said: “The Marsden Tracker ISA pays the best rate for two years but it tracks the base rate, so it can vary rather than being fixed. If you’re looking for a fixed ISA that will allow you to make additional deposits during the term then Kent Reliance, Barclays and M&S Bank are ones to explore. The rates on products that allow you to make deposits are slightly lower, but depositing additional funds during the fixed term could be worth more in the long run. That’s why you need to look for a product that suits your particular needs.”
The current best cash ISAs that allow additional deposits (data provided by Defaqto) are:
|
Provider |
Product |
Headline Interest Rate |
Term in Months |
Minimum Initial Deposit |
|
Kent Reliance |
One Year Fixed Rate Cash ISA (Issue 96) |
4.65% |
12 |
£1,000 |
|
Barclays |
1 Year Flexible Cash ISA (Issue 55) |
4.60% |
12 |
£1 |
|
M&S Bank |
1 Year Fixed Rate Cash ISA (Issue 49) |
4.30% |
12 |
£500 |
|
Darlington Building Society |
1 Year Fixed Rate Cash ISA (80) |
4.10% |
12 |
£500 |
|
Barclays |
18 Months Flexible Cash ISA (Issue 56) |
4.35% |
18 |
£1 |
|
Darlington Building Society |
2 Year Fixed Rate Cash ISA (81) |
4.00% |
24 |
£500 |
|
M&S Bank |
2 Year Fixed Rate Cash ISA (Issue 49) |
4.00% |
24 |
£500 |
|
M&S Bank |
3 Year Fixed Rate Cash ISA (Issue 49) |
3.75% |
36 |
£500 |
Defaqto maintains the UK’s most comprehensive financial product database, providing independent expertise, insights, tools and technology to help everyone make smarter financial decisions, and has put together the above based on data available on 16 April 2024.