Which? Money provides our weekly round-up of the best deals on the market to help you invest your cash Isa allowance for 2015/2016.
Cash Isa allowance for 2015/2016
Each year you can deposit your savings into a cash or a stocks and shares Isa, or both. The overall limit for the 2015/16 tax year, for both cash and stocks and shares, is £15,240.
In his 2015 Budget, Chancellor George Osborne announced that savers will be able to take out and put back money into their cash Isa without it counting towards their annual tax-free Isa entitlement for that tax year. These changes will be introduced in autumn 2015.
To maximise your tax-free allowance, remember to save in a cash Isa before putting your money in an ordinary taxable savings account.
Here, we take a look at some of the best cash Isa rates in the market. 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
We have excluded Isas with certain qualifying conditions and restrictions on withdrawals.
Instant-access cash Isa
The top rate to meet our criteria is from Punjab National Bank, offering 2.00% AER. Isa accounts from Punjab National Bank must be opened in-branch. Click here for more information on this Isa.
The instant-access Isa from National Savings & Investments (NS&I) is next, paying 1.50% AER.
Notice cash Isa
Notice cash Isa accounts once paid a higher rate for locking up your money than instant-access Isas, but at the moment there aren’t any notice account Isas paying more than the top instant-access cash Isa rate.
Beverley Building Society’s 30 Day Isa has the highest rate, as it pays between 1.30% and 1.50% AER, depending on your balance. Click here for more information.
Dudley Building Society’s 30 Day Isa is next, paying 1.45% AER on balances between £100 and £500,000.
One-year fixed-rate cash Isa
Currently topping the one-year fixed rate cash Isa tables are Al Rayan Bank and Punjab National Bank, both paying 1.90% AER. However, the rate from Al Rayan Bank is an ‘expected profit rate’ from its Sharia compliant investments, so returns are not guaranteed.
Click here for more information about the Punjab National Bank Isa.
Two-year fixed-rate cash Isa
Punjab National Bank tops this table with a 2.15% AER rate. Click here for more information about this Isa.
Kent Reliance and Shawbrook Bank offer the next best rate that isn’t tied to other products, both paying 1.85% AER.
Three-year fixed-rate cash Isa
Punjab National Bank offers the best rate in our table in this category, paying 2.30% AER. Click here to find out more about this Isa.
Julian Hodge Bank offers the next best rate, at 2.05% AER from initial deposits of £5,000.
Four-year fixed-rate cash Isa
Punjab National Bank’s four-year cash Isa tops this table, paying 2.50% AER. Click here to find out more about this Isa.
Julian Hodge Bank offers the next best rate, at 2.15% AER. This account can only be opened and operated by post.
Five-year fixed-rate cash Isa
Punjab National Bank’s rate of 2.70% AER comes top of our five-year fixed rate table. More information can be found here.
Coventry Building Society and Julian Hodge Bank offer the next best rate, both at 2.40% AER.
Which? Money Compare table: Fixed-term cash Isas – compare hundreds of deals
Help to Buy Isa – First-time buyers
This autumn will see the launch of a new Help to Buy Isa, designed to help would-be first-time buyers save a deposit for their first home.
You can’t contribute to a cash Isa in the same tax year as a Help to Buy Isa. Therefore, if you will want to open a Help to Buy Isa in the 2015/2016 tax year, make sure you don’t add any money to a cash Isa in this tax year.
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 good home for your nest egg. We also combine this with our unique customer scores that show you how well the providers featured are likely to treat you in the long run.
- Have your savings questions answered – Call the Which? Money Helpline
- Find out how to transfer your cash Isa – See our expert guide
- Discover what happens to your Isa savings when you die – Read our guide to the new inheritance rules
Which? Limited is an Introducer Appointed Representative of Which? Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 527029). Which? Mortgage Advisers and Which? Money Compare are trading names of Which? Financial Services Limited.