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
The top rate to meet our criteria is from Punjab National Bank, offering 2.00% AER. It’s worth noting fixed Isa accounts from Punjab National Bank must be opened in a branch. Click on this link to see more on Punjab National Bank Isa.
The instant-access Isa from National Savings & Investments (NS&I) is next, paying 1.50% AER.
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% AER, but you’ll need to give around a month’s notice to get at your cash.
Beverley Building Society’s 30 Day Isa pays between 1.30% and 1.50% AER, depending on your balance.
One-year fixed-rate cash Isa
Currently topping the one-year fixed rate cash Isa tables are Al Rayan Bank and Punjab National Bank, both paying 1.90% AER. However, the rate from Al Rayan Bank is an ‘expected profit rate’ from its Sharia compliant investments, so returns are not guaranteed.
Click here for more information about the Punjab National Bank Isa.
Two-year fixed-rate cash Isa
Punjab National Bank tops this table with a 2.15% AER rate. Click here for more information about this Isa.
Kent Reliance offers the next best rate that isn’t tied to other products, paying 1.85% AER.
Three-year fixed-rate cash Isa
Punjab National Bank offers the best rate in our table in this category, paying 2.30% AER. Click here to find out more about this Isa.
Metro Bank, Nationwide, Shawbrook Bank, Skipton Building Society and Virgin Money offer the next best rate, all at 2.00% AER.
Four-year fixed-rate cash Isa
Punjab National Bank’s four-year cash Isa tops this table, paying 2.50% AER. Click here to find out more about this Isa.
Coventry Building Society offers the next best rate, at 2.10% AER. Furthermore, you only need an initial deposit of £1 to open it.
Five-year fixed-rate cash Isa
Punjab National Bank’s rate of 2.70% AER comes top of our five-year fixed rate table. More information can be found here.
Virgin Money offers the next best rate, at paying 2.35% AER.
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.
- Have your savings questions answered – Call the Which? Money Helpline
- Find out how to transfer your cash Isa – See our expert guide
- Discover what happens to your Isa savings when you die – Read our guide to the new inheritance rules
Which? Limited is an Introducer Appointed Representative of Which? Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 527029). Which? Mortgage Advisers and Which? Money Compare are trading names of Which? Financial Services Limited.