Which? Money provides our weekly look at the best deals out there to help you invest your new 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.
Go further: New Isa rules – find out how to make the most of the new Isas
The best cash Isas
Instant access cash Isa
Top of the table at the moment in the best instant access cash Isa sector are BM Savings and Krbs, both paying 1.55%.
GE Capital Direct, Halifax, Nationwide, NS&I, Skipton Building Society, Virgin Money and West Bromwich Building Society, all offer the next highest rate of 1.50%. However, it’s worth noting that the accounts from NS&I and Skipton Building Society don’t allow transfers in from other providers.
Notice cash Isa
Notice cash Isa accounts used to pay a higher rate for locking up your money, but at the moment there is only one notice account paying more than the top instant access cash Isa rate.
Krbs offers the top rate, at 1.60%, but you’ll need to give two months’ notice to get at your cash.
One-year fixed-rate cash Isa
Krbs currently tops the table with a 1.75% market-leading one-year fixed-rate cash Isa. Aldermore Bank, Julian Hodge Bank and Tesco Bank follow closely behind with their Isas, all paying 1.65%.
Two-year fixed-rate cash Isa
The two-year fixed-rate cash Isa deal from Krbs, paying 2.10%, is the best product if you’re happy to tie up your money for two years.
Three-year fixed-rate cash Isa
Aldermore Bank, Nationwide, United Trust Bank and Virgin Money currently top our three-year fixed-rate cash Isa table, all paying 2.25%. The fixed rate Isa from Skipton Building Society isn’t far behind, at 2.20%.
Four-year fixed-rate cash Isa
Coventry Building Society’s Fixed Rate Isa is offering a rate of 2.75% 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. The best account allowing transfers is offered from Nationwide, paying 2.40%.
Five-year fixed-rate cash Isa
Julian Hodge Bank and Leeds Building Society currently top our five-year fixed-rate cash Isa table, both paying 2.85%. However, the deal from Leeds Building Society doesn’t allow transfers in from other providers.
Cash Isa tip of the week
If you’ve already opened a fixed-rate cash Isa this year and want to make the most of the higher allowance, you may have to move fast. Check our guide to provider deadlines and rules on topping up your Isa.
Many providers have confirmed they will be allowing top-ups throughout July, with some extending the top-up period to the end of the tax year.