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, and 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.
Best instant-access cash Isa
The top rates meeting our criteria are from Coventry Building Society and M&S Bank, both paying 1.1% AER. Click to find out more about the Coventry Building Society and M&S Bank cash Isas. It’s worth noting that the M&S Advantage Isa rate will drop to 0.80% from 18 October 2016.
The Family Building Society offers the next best rates in our table, at 1.09% AER.
Best 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 Isas from the Principality Building Society and Manchester Building Society top the table, at 1% AER on balances from £500 and £1,000 respectively. Click to find out more about the Principality Building Society Isa and the Manchester Building Society Isa.
Best 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 1.36% AER.
Aldermore, Bank of Cyprus UK, Kent Reliance and Shawbrook Bank offer the next best rates in our table, all at 1.1% AER.
Best two-year fixed-rate cash Isa
Aldermore, Bank of Cyprus UK and Kent Reliance offer the next best rates in our table, all at 1.15% AER.
Best three-year fixed-rate cash Isa
Paragon Bank offers the best rate in our table for this category, paying 1.5% AER.
Hodge Bank offers the next best rate in our table, paying 1.3% AER.
Best four-year fixed-rate cash Isa
Hodge Bank offers the best rate in our table, paying 1.4% AER. Click the link to find out more about the Hodge Bank 4-year fixed-rate Isa.
United Trust Bank offers the next best rate in our table, at 1.3% AER.
Best five-year fixed-rate cash Isa
Shawbrook Bank comes top in our five-year fixed-rate table, paying 1.7% AER. Click on the link for more information about the Shawbrook Bank 5-year Fixed-Rate Isa.
Hodge Bank comes next in our table, offering 1.55% 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 when you buy a home.
Your Help To Buy Isa savings can be used to buy a property 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.
Barclays currently offers the best instant-access deal, paying 2.27% 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 providers 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.