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.
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.
The best cash Isas
Instant-access cash Isa
Currently topping the best instant-access cash Isa tables is BM Savings, paying 1.60%. Click here to find out more about this Isa.
NS&I and Skipton Building Society both offer the next highest rate of 1.50%. However, it’s worth noting that these accounts don’t allow transfers in from other Isa 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.
Bank of Cyprus UK, Charity Bank and Dudley Building Society all offer the top rate, at 1.50%, but you’ll need to give around a month’s notice to get at your cash.
One-year fixed-rate cash Isa
The Post Office currently tops the table with a 1.70% market-leading one-year fixed-rate cash Isa. You can find out more here.
Julian Hodge Bank and Tesco Bank follow closely behind, both paying 1.65%. However, it’s worth noting that Julian Hodge Bank requires a minimum deposit of £5,000 at account opening.
Two-year fixed-rate cash Isa
The two-year fixed-rate cash Isa deal from Virgin Money, paying 2.10%, is the best product if you’re happy to tie up your money for two years. Click here for more information.
Following closely behind is a deal from Barclays, paying 2.02% from an initial opening balance of just £1.
Three-year fixed-rate cash Isa
Virgin Money currently tops the three-year fixed-rate cash Isa table, paying 2.25%. For more details about this Isa, click here.
The fixed rate Isa from Skipton Building Society isn’t far behind, at 2.20%. This account can be operated in-branch or over the phone.
Four-year fixed-rate cash Isa
Coventry Building Society’s Fixed Rate Isa is offering a rate of 2.60%, 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
Julian Hodge Bank, Principality Building Society, Skipton Building Society and United Trust Bank currently lead the five-year fixed-rate cash Isa table, all paying 2.50%.
Principality Building Society achieved an impressive score of 60% in our recent customer satisfaction survey. More information can be found here.
Which? Comparison Table: Best Rate fixed-term cash Isas – compare the best deals on the market
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 the new Which? Money Compare tables, which let you search all available savings accounts and cash Isa deals from all providers 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.
- Call the Which? Money Helpline – for any questions on your savings
- Fixed rate Isa top-up deadlines – for provider rules on topping up your Isa
- How to find the best cash Isa – maximise your tax-free savings allowance
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.