Cash Isa deals of the week 08 January 2015Introduction of Nisas boosts tax-free allowances

08 January 2015

Christmas piggy bank

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

Tesco Bank and Virgin Money follow closely behind, both paying 1.65% from initial opening balances of just £1.

Two-year fixed-rate cash Isa

The two-year fixed-rate cash Isa deal from Julian Hodge Bank, paying 2.00%, is the best product if you're happy to tie up your money for two years. This postal account requires an initial investment of £5,000. 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? Money Compare table: Best Rate fixed-term cash Isas - compare hundreds of deals

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. 

The Which? Money Compare tables let you search hundreds of savings accounts and cash Isa deals from providers large and small 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.

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