Which? Money provides our weekly roundup of the best cash Isa deals on the market to help you invest your tax-free allowance for 2015/2016.
Cash Isa allowance for 2015/2016
Each year you can deposit your savings into a cash or stocks and shares Isa, or both. The overall limit for the 2015/16 tax year for both cash and stocks and shares Isas is £15,240.
In his 2015 Budget, chancellor George Osborne announced that savers will be able to take out and put money back 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 on the market. If you’re keen to find out more about any of the deals, we’ve also included links to Which? Money Compare, where you’ll find more details about each Isa.
Best-rate cash Isas
We have excluded Isas with certain qualifying conditions and restrictions on withdrawals.
Instant-access cash Isa
The top rate meeting our criteria is from Punjab National Bank, offering 1.65% AER. It’s worth noting that this Isa must be opened in branch. Click on the link to see more about the Punjab National Bank Cash Isa.
The easy access Isa from the Post Office is next in our table, paying 1.51% 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 Isa accounts paying more than the top instant access cash Isa rate.
Dudley Building Society’s 30 Day Isa tops the table, paying 1.35% AER on balances between £100 and £500,000. Click on the link for more on Dudley Building Society’s Isa.
One-year fixed-rate cash Isa
Currently topping the one-year fixed-rate cash Isa tables is Al Rayan Bank, 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 on the link for more information about the Al Rayan Bank Fixed Term Deposit Cash Isa.
Virgin Money offers the next best rate in our table, at 1.81% AER.
Two-year fixed-rate cash Isa
Mansfield Building Society tops this table, paying 2.10% AER. It’s worth noting that transfers in from other Isa providers are not allowed. Click on the link for more about this Mansfield Building Society Isa.
Virgin Money offers the next best rate in our table, at 2.06% AER from initial deposits of just £1.
Three-year fixed-rate cash Isa
Barnsley Building Society, Chelsea Building Society, N&P Building Society, Yorkshire Building Society and Punjab National Bank offer the best rates in our table in this category, all paying 2.30% AER. Click on the link for more on the Chelsea BS 3 Year Fixed Rate Isa.
Virgin Money offers the next best rate in our table, paying 2.25% AER from initial deposits of just £1.
Four-year fixed-rate cash Isa
Leeds Building Society and Punjab National Bank offer the best rates in our table, both paying 2.35% AER. Click on the link to find out more about the Leeds Building Society 4 Year Fixed Cash Isa.
Julian Hodge Bank offers the next best rate in our table, paying 2.15% AER. This account can only be opened and operated by post.
Five-year fixed-rate cash Isa
Julian Hodge Bank’s rate of 2.55% AER comes top of our five-year fixed-rate table. Click on the link for more information about the Julian Hodge Bank 5 Year Fixed Isa.
Virgin Money offers the next best rate in our table, paying 2.51% AER from initial deposits of just £1.
Which? Money Compare table: Fixed-rate cash Isas – compare hundreds of deals
Help to Buy Isa – first-time buyers
On 1 December 2015 the new Help to Buy Isa will be launched, with the aim of helping 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 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
- Read our expert guide to how to transfer your cash Isa
- Discover what happens to your Isa savings when you die under 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.