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Cash Isa deals of the week: 05 January 2017

Top savings rates of the week

Piggy bank wearing scarf

You can earn 1.09% AER with this week’s best instant-access cash Isa

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 rate meeting our criteria is from The Family Building Society, paying 1.09% AER. Click to find out more about the The Family Building Society cash Isa.

NS&I, Penrith Building Society and The Melton Mobray Building Society offer the next best rates in our table, all paying 1% 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 Isa from Principality Building Society tops the table, at 0.9% AER. Click to find out more about the Principality Building Society cash Isa.

Aldermore offers the next best rate in our table, at 0.8% AER.

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 1.09% AER. 

Bank of Cyprus UK offers the next best rate in our table, at 1.05% AER.

Best two-year fixed-rate cash Isa

Aldermore, offers the best rate in our table, at 1.2% AER. 

Leeds Building Society offers the next best rate in our table, paying 1.15% AER.

Best three-year fixed-rate cash Isa  

Aldermore, Paragon Bank and Virgin Money offer the table-topping rates in this category, all paying 1.25% AER.

Hodge Bank, Leeds Building Society, Metro Bank and Skipton Building Society offer the next best rates in our table, all paying 1.2% AER.

Best four-year fixed-rate cash Isa 

Hodge Bank and United Trust Bank offer the best rates in our table, both paying 1.3% AER. Click the links to find out more about the Hodge Bank and the United Trust Bank four-year fixed-rate Isas.

Punjab National Bank offers the next best rate in our table, at 1.1% AER.

Best five-year fixed-rate cash Isa 

Paragon Bank tops our five-year fixed-rate table, paying 1.6% AER. Click on the link for more information about the Paragon Bank 5-year Fixed-Rate Isa.

Virgin Money is next in our table, offering 1.51% 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.

More on this… 

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.

Categories: Money, Savings & Isas

Please note that the information in this article is for information purposes only and does not constitute advice. Please refer to the particular terms & conditions of a provider before committing to any financial products.

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