Which? Money provides our weekly look at the best deals on the market to help you invest your cash Isa allowance for 2014/15.
Cash Isa allowance for 2014/15
The overall annual limit for a tax-free Isa increased to £15,000 on 1 July. This limit for new Isas, or ‘Nisas’, can now be made up of cash, or stocks and shares, or a mixture of both.
Under the old rules, you could place only half of your annual allowance into a cash Isa. The remainder had to go into stocks and shares. But savers can now deposit the full £15,000 into cash or stocks and shares, or into any mix of both.
Here, we take a look at some of the best cash Isa deals currently available. For the Best Rate cash Isas, we’ve also included a link to the Which? Money Compare tables where you can find out more details.
The best cash Isas
Instant-access cash Isa
Currently topping the best instant-access cash Isa tables is National Savings & Investments (NS&I), paying 1.50%. However, it’s worth noting that this account doesn’t allow transfers in from other Isa providers. Click here to find out more about this Isa.
Bath Building Society, Sainsbury’s Bank and Tesco Bank are next, all paying 1.45%.
Notice cash Isa
Notice cash Isa accounts used to pay a higher rate for locking up your money, but at the moment there aren’t any notice account Isas paying more than the top instant-access cash Isa rate.
Charity Bank and Dudley Building Society both offer the top rate, at 1.50%, but you’ll need to give around a month’s notice to get at your cash.
One-year fixed-rate cash Isa
Julian Hodge Bank currently tops the table with a 1.75% market-leading one-year fixed-rate cash Isa. You can find out more here.
The Post Office follows closely behind, paying 1.70% from initial opening balances of £500.
Two-year fixed-rate cash Isa
The two-year fixed-rate cash Isa deals from The AA and Julian Hodge Bank, both paying 2.00%, are the best product if you’re happy to tie up your money for two years. The deal from the AA requires an initial investment of just £1. Click here for more information.
Following closely behind is the deal from the Post Office, paying 1.95% from an initial opening balance of £500.
Three-year fixed-rate cash Isa
Virgin Money currently tops the three-year fixed-rate cash Isa table, paying 2.15%. For more details about this Isa, click here.
The fixed rate Isa from Julian Hodge Bank and the Post Office aren’t far behind, both paying 2.10%.
Four-year fixed-rate cash Isa
Coventry Building Society’s Fixed Rate Isa is offering a rate of 2.40%, and is the best four-year fixed-rate cash Isa deal at the moment. However, this account doesn’t accept transfers in from other providers. Click here to find out more about this Isa.
Five-year fixed-rate cash Isa
Julian Hodge Bank, United Trust Bank and Virgin Money currently lead the five-year fixed-rate cash Isa table, all paying 2.50%.
The Isa from Virgin Money requires an initial deposit of just £1. More information can be found here.
Which? Comparison Table: Best Rate fixed-term cash Isas – compare the best deals on the market
Cash Isa tip of the week
It’s been tough to find the best rate on your savings and cash Isa in recent years, but Which? is here to help.
You can search the new Which? Money Compare tables, which let you search all available savings accounts and cash Isa deals from all providers so that you can find a great home for your nest egg. We also combine this with our unique customer scores that show you how well the provider you pick will treat you in the long run.
- Call the Which? Money Helpline – for any questions on your savings
- Fixed rate Isa top-up deadlines – for provider rules on topping up your Isa
- How to find the best cash Isa – maximise your tax-free savings allowance
Which? Ltd is an Introducer Appointed Representative of Which? Financial Services Ltd, which is authorised and regulated by the Financial Conduct Authority. Which? Mortgage Advisers and Which? Money Compare are trading names of Which? Financial Services Limited.