Which? Money provides our weekly round up of the best deals on the market to help you invest your cash Isa allowance for 2015/2016.
Cash Isa allowance for 2015/2016
Each year you can deposit your savings into a cash or a stocks and shares Isa, or both. The overall limit for the new tax year of 2015/2016 (for both cash and stocks and shares) 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 in the market. 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
We have excluded Isas with certain qualifying conditions and restrictions on withdrawals.
Instant-access cash Isa
Currently topping the best instant-access cash Isa tables is West Brom BS offering 1.55%. Click here to find out more about this Isa.
Instant-access Isas from National Savings & Investments (NS&I) and Skipton BS both pay 1.50%. The NS&I account doesn’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.
Dudley Building Society offers the top rate in our notice cash Isa table, at 1.50%, but you’ll need to give around a month’s notice to get at your cash. Click here for more information about this Isa.
Beverley BS is next, paying 1.30%.
One-year fixed-rate cash Isa
Currently topping the one-year fixed rate cash Isa tables is Al Rayan Bank, which offers an ‘expected profit rate’ from Sharia compliant investments of 1.9%. Returns are not guaranteed.
Of interest-paying accounts, Shawbrook Bank offers a one-year fixed rate cash Isa, paying 1.7%. You can find out more here.
Aldermore and Julian Hodge offer the next best rates of 1.65%. Aldermore requires a minimum deposit of £1,000, while Julian Hodge requires £5,000.
Two-year fixed-rate cash Isa
The two-year fixed-rate cash Isa from Shawbrook Bank, paying 1.95%, offers the best rate if you’re happy to tie up your money for two years. Interest is paid monthly with this account and you will need to deposit at least £5,000. Click here for more information.
Julian Hodge Bank, offers the next best rate, paying 1.9%.
Three-year fixed-rate cash Isa
The following institutions pay 2% if you are willing to tie up your money for three years – Aldermore, Yorkshire BS, Virgin Money, Chelsea BS, Barnsley, Metro Bank and Norwich & Peterborough BS.
Four-year fixed-rate cash Isa
Coventry BS currently tops the four-year fixed rate cash ISA table with an account paying 2.1%. Click here to find out more about this Isa.
Julian Hodge Bank’s 4 Year Fixed ISA offers the next best rate of 2%. However, you need to deposit a minimum of £5,000 to qualify for the account.
Five-year fixed-rate cash Isa
United Trust Bank currently leads the five-year fixed-rate cash Isa table, paying 2.3%. More information can be found here.
Virgin Money and Metro Bank offer the next best rates, paying 2.25%. Both accept a minimum deposit of £1.
Which? Money Compare table: Fixed-term cash Isas – compare hundreds of deals
Help to Buy Isa – First-time buyers
This autumn will see the launch of a new Help to Buy Isa, designed to help 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 will 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 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? Limited is an Introducer Appointed Representative of Which? Financial Services Limited, 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.