With the deadline to put money into your tax-free cash Isa account just over two weeks away, Which? provides our weekly look at the best deals out there.
Cash Isa deadline is 5 April 2015
The cash Isa deadline is important as it signifies the end of the tax year. You’ll lose this year’s tax-free savings allowance if you haven’t put money into an Isa before that date.
Each year you can deposit your savings into a cash or a stocks and shares Isa, or both. The overall limit for the tax year ending 5 April 2015 is £15,000 and this goes up to £15,240 for the new tax year of 2015/16 starting 6 April 2015.
In his 2015 Budget, Mr Osborne announced that savers will be able to take out and put money back in to their cash Isa without it counting towards their annual tax-free Isa allowance. 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 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.
Best Rate cash Isas
Instant-access cash Isa
Currently topping the best instant-access cash Isa tables are National Savings & Investments (NS&I) and Post Office Money, both paying 1.50%. However, it’s worth noting that the NS&I account doesn’t allow transfers in from other Isa providers. Click here to find out more about this Isa.
Coventry Building Society and GE Capital Direct are next, both paying 1.40%.
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 month’s notice to get at your cash. Kent Reliance’s 60 Day Notice cash Isa is next, at 1.40%.
One-year fixed-rate cash Isa
Julian Hodge Bank and Shawbrook Bank offer market-leading one-year fixed rate cash Isas, both paying 1.65%. The Julian Hodge Bank deal requires an initial investment of £5,000 at account opening. You can find out more here.
Virgin Money follows closely behind, paying 1.60%.
Two-year fixed-rate cash Isa
The two-year fixed-rate cash Isas from Clydesdale and Yorkshire Bank, paying 2.10%, are the best rates if you’re happy to tie up your money for two years. These accounts can be opened and operated in-branch only. Click here for more information.
Following closely behind are the Isas from Post Office Money and Shawbrook Bank, both paying 1.95%.
Three-year fixed-rate cash Isa
Post Office Money currently tops the three-year fixed-rate cash Isa table, paying 2.10%. For more details about this Isa, click here.
Deals from Aldermore Bank and Virgin Money aren’t far behind, both paying 2.00%.
Four-year fixed-rate cash Isa
Coventry Building Society’s Fixed Rate Isa is offering a rate of 2.25%, which is the highest four-year fixed-rate cash Isa rate 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
United Trust Bank currently leads the five-year fixed-rate cash Isa table, paying 2.75%. More information can be found here.
Leeds Building Society and Virgin Money are next, paying 2.30% and 2.25% respectively.
Which? Money Compare table: Fixed-term cash Isas – compare hundreds of deals
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.
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 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
- How to transfer a cash Isa – for a step-by-step guide to transferring your Isa
- New inheritance rules for Isas – for any questions on what happens to your Isa savings when you die
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.