Discover the best cash Isa deals currently available with the Which? Money weekly roundup.
Cash Isa allowance for 2015-2016
Each year, you can deposit your savings into a cash or stocks and shares Isa, or both. The overall limit for the 2015-16 tax year for both cash and stocks and shares Isas is £15,240.
To maximise your tax-free allowance, remember to save in a cash Isa before putting your money into an ordinary taxable savings account.
Here, we take a look at some of the best cash Isa rates on the market. If you’re keen to find out more about any of these deals we’ve also included links to Which? Money Compare, the comparison site which lets you see banks’ customer scores as well as their rates, where you’ll find more details about each Isa.
Don’t forget, the deadline to use your 2015-16 Isa allowance is 6 April 2016.
Find out more: Lifetime Isas explained – read about a new tax-free savings vehicle that was announced in the Budget and will be available from April 2017.
Best-rate cash Isas
We have excluded Isas with certain qualifying conditions and restrictions on withdrawals.
Instant-access cash Isa
The top rate meeting our criteria is from Punjab National Bank, offering 1.65% AER. This Isa must be opened in branch. Click on the link to see more about the Punjab National Bank Instant-Access Cash Isa.
Coventry Building Society’s Easy Access Isa is next in our table, paying 1.4% AER.
Notice cash Isa
Notice cash Isa accounts used to pay a higher rate than instant-access Isas, but at the moment this isn’t the case.
The 30 Day Notice Isa from Beverley BS tops the table, paying 1.3% AER on balances from just £1. Click on the link for more on the Beverley BS – 30 Day Notice Isa
One-year fixed-rate cash Isa
Currently topping the one-year fixed-rate cash Isa table is Al Rayan Bank, paying 1.9% AER. However, the rate is an ‘expected profit rate’ from its sharia-compliant investments, so returns are not guaranteed. Click on the link for more information about the Al Rayan Bank Fixed Term Deposit Cash Isa.
Punjab National Bank offers the next best rate in our table, at 1.5% AER.
Two-year fixed-rate cash Isa
Punjab National Bank offers the best rates in our table, paying 1.9% AER. Click on the link for more about the Punjab National bank 2 Year Fixed Cash Isa.
Shawbrook Bank offers the next-best rate in our table, at 1.65% AER.
Three-year fixed-rate cash Isa
Punjab National Bank and State Bank of India offer the best rates in our table in this category, both paying 2.3% AER. Click on the link for more on the Punjab National Bank 3-Year Fixed Cash Isa.
Shawbrook Bank offers the next best rate in our table, paying 1.85% AER.
Four-year fixed-rate cash Isa
Punjab National Bank offers the best rate in our table, paying 2.35% AER. Click on the link to find out more about the Punjab National Bank 4-Year Fixed Cash Isa.
Julian Hodge Bank offers the next best rate in our table, paying 1.85% AER.
Five-year fixed-rate cash Isa
Punjab National Bank comes top in our five-year fixed-rate table, paying 2.5% AER. Click on the link for more information about the Punjab National Bank 5 Year Fixed Cash Isa.
United Bank UK offers the next best rate in our table, at 2.33% AER.
Which? Money Compare table: fixed-rate cash Isas – compare all available fixed-rate deals
Help to Buy Isa – first-time buyers
If you’re saving for your first home, you can now open a Help to Buy Isa, which is designed to help first-time buyers get onto the property ladder.
You can deposit up to £200 a month in a Help To Buy Isa (plus an additional initial deposit of £1,000), with the government topping up these savings by 25% up to a maximum of £3,000.
Your Help To Buy Isa savings can be used to buy a home worth up to £250,000, or £450,000 in London. And if you’re buying with someone else, you can open separate accounts and jointly earn a bonus of up to £6,000.
It’s worth noting that you can’t contribute to a cash Isa in the same tax year as a Help to Buy Isa. Therefore, if you 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 good home for your nest egg. We also combine this with our unique customer scores that show you how well the providers featured are likely to treat you in the long run.
- Have your savings questions answered by calling the Which? Money Helpline
- Read our comprehensive, expert guide to how to transfer your cash Isa
- Discover what happens to your Isa savings when you die under 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.