Discover the best cash Isa deals currently available with the Which? Money weekly roundup.
Cash Isa allowance for 2016-17
Each year you can deposit your savings into a cash or stocks and shares Isa, or both. The overall limit for the 2016-17 tax year for both cash and stocks and shares Isas is £15,240.
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.
Find out more: lifetime Isas explained – read about the new tax-free savings vehicle 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 Marks & Spencer Bank, offering 1.3% AER. This Isa can only be managed by post or over the phone. Click on the link to see more about the Marks & Spencer Advantage Isa.
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 Building Society tops the table, paying 1.3% AER on balances from just £1. Click on the link for more on the Beverley Building Society 30 Day Cash Isa.
One-year fixed-rate cash Isa
Currently topping the one-year fixed-rate cash Isa table is Al Rayan Bank’s Fixed Term Deposit Account, paying 1.51% AER.
Clydesdale and Yorkshire Bank offer the next best rates in our table, both at 1.35% AER.
Two-year fixed-rate cash Isa
Leeds Building Society, Shawbrook Bank and Virgin Money offer the best rate in our table for this category, all paying 1.4% AER. Click on the link for more about the Virgin Money 2-year fixed Cash Isa
Bank of Cyprus UK offers the next best rates at 1.35% AER.
Three-year fixed-rate cash Isa
Saga offers the best rate in this category, paying 1.8% AER. Click on the link for more on the Saga 3-Year Fixed Cash Isa.
Shawbrook Bank offers the next best rate in our table, paying 1.7% AER.
Four-year fixed-rate cash Isa
Julian Hodge Bank offers the best rate in our table, paying 1.4% AER. Click on the link to find out more about the Julian Hodge Bank 4-Year Fixed Cash Isa.
Punjab National Bank offers the next best rate in our table, paying 1.35% AER.
Five-year fixed-rate cash Isa
United Trust Bank comes top in our five-year fixed-rate table, paying 2.05% AER. Click on the link for more information about the United Trust Bank 5-year fixed Cash Isa.
Halifax and Nationwide offer the next best rate in our table, both at 2.0% AER.
Which? Money Compare table: fixed-rate cash Isas – compare hundreds of 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.
Virgin Money’s Help to Buy Isa currently offers the best deal, paying 3% AER.
You can’t contribute to a cash Isa in the same tax year as a Help to Buy Isa, so if you want to open a Help to Buy Isa in 2016-17, make sure you don’t deposit new funds into another 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.
- Learn how your savings options are affected by the new personal savings allowance
- Discover what happens to your Isa savings when you die under the new inheritance rules
- Have your savings questions answered by calling the Which? Money Helpline
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.