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Cash Isa deals of the week 29 January 2015

Introduction of Nisas boosts tax-free allowances
Savers kept in the dark

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 2014. 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.

Best Rate 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 and Sainsbury’s Bank are next, both 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.

Dudley Building Society offers the top rate, at 1.50%, but you’ll need to give around a month’s notice to get at your cash. Kent Reliance’s 60 Day Notice cash Isa is next, at 1.40%.

One-year fixed-rate cash Isa

Virgin Money offers a market leading one-year fixed rate cash Isa, currently paying 1.70%. An initial investment of just £1 is required at account opening. You can find out more here

Julian Hodge Bank follows closely behind, paying 1.65% from initial opening balances of £5,000.

Two-year fixed-rate cash Isa

The two-year fixed-rate cash Isa deal from the Post Office, paying 1.95%, is the best product if you’re happy to tie up your money for two years. This account requires an initial investment of £500. Click here for more information. 

Following closely behind is the deal from the Julian Hodge Bank, paying 1.90% from an initial opening balance of £5,000.

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 the Post Office isn’t far behind, paying 2.10%. 

Four-year fixed-rate cash Isa 

Coventry Building Society’s Fixed Rate Isa is offering a rate of 2.25%, 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 

United Trust Bank and Virgin Money currently lead the five-year fixed-rate cash Isa table, both 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: 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.

More on this… 

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.

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