Which? Money provides its weekly look at the best savings deals currently available to help you deposit your cash in the right account.
Best cash Isa savings accounts on the market
Although interest rates on taxable instant access and fixed term accounts are continuing to fall, rates on cash Isas have fared a little better overall.
Savers can earn 2.00% tax-free in Nationwide’s Easy Saver Isa and Tesco Bank’s Instant Access Isa, while the best ordinary instant access account pays just 1.75% gross (1.40% after basic-rate tax at 20% and 1.05% after higher-rate tax at 40% ).
Savers can currently earn 2.25% with NS&I’s Direct Isa and 1.75% (before tax) in its Income Bonds ordinary savings account, but as from 12th September 2013, rates on these accounts will reduce to 1.75% and 1.25% respectively.
If you haven’t used all of this year’s Isa allowance (£5,760 to 5 April 2014) and you’re searching for a short-term home for your savings, Nationwide’s Building Society’s cash Isa account may be the one for you. It’s worth noting that this account includes a 1.50% bonus payable to 30 November 2014 and doesn’t accept transfers in from other providers.
If you plan to transfer previous years’ Isa allowances, cash Isas from BM Savings and Virgin Money offer the best instant access cash Isa rate, both paying 1.75%.
Find more Best Rate products
- Best Rate savings accounts – to find the best instant, notice and one to five-year fixed rate accounts.
- Best Rate cash Isas – to find the best tax-free instant, notice or fixed rate cash Isa deals.
- Best Rate credit cards – to find the best cards to suit your requirements.
- Top unsecured personal loans – for borrowing £10,000 over 5-years or £5,000 over 3-years.
And finally… boost your savings
To find out if your savings account is paying a competitive interest rate, check out the Which? Savings Rate Booster tool and switch your account for a better deal if necessary.