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Cash Isa deals of the week 28 August 2014

Introduction of Nisas boosts tax-free allowances

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.

Which? Comparison Table: Best Rate Cash Isas – compare the best deals on the market

The best cash Isas

Instant access cash Isa 

Currently topping our best instant access cash Isa tables is BM Savings, paying 1.55%. 

Skipton Building Society, Virgin Money, Derbyshire Building Society, West Bromwich Building Society, NS&I all offer the next highest rate of 1.50%. However, it’s worth noting that Derbyshire Building Society is the only provider from this list that allows 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 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 months’ notice to get at your cash. 

One-year fixed-rate cash Isa

Yorkshire Building Society currently tops the table with a 2.00% market-leading one-year fixed-rate cash Isa. Aldermore Bank, Tesco Bank and Julian Hodge Bank follow closely behind, paying 1.65%.

Two-year fixed-rate cash Isa

The two-year fixed-rate cash Isa deal from Barclays, paying 2.02%, is the best product if you’re happy to tie up your money for two years. Following closely behind are deals from Aldermore and Santander, each paying 2.00%. 

Three-year fixed-rate cash Isa 

United Trust Bank currently tops our three-year fixed-rate cash Isa table, paying 2.50%. The fixed rate Isa from Aldermore Bank isn’t far behind, at 2.25%.

Four-year fixed-rate cash Isa 

TSB’s Fixed Rate Isa is offering a rate of 2.2% and is the best four-year fixed-rate cash Isa deal at the moment, although it requires an initial investment of £3,000. The next best account, from Nationwide, pays 2.17%.

Five-year fixed-rate cash Isa 

United Trust Bank currently tops our five-year fixed-rate cash Isa, paying 2.95%. An initial investment of £5,000 is required at account opening.

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. 

You can search our new comparison tables, which let you search all available savings accounts and cash Isa deals from all providers so that you can find the perfect 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… 

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