The rates on cash ISAs – including easy access and notice ISAs – have improved alongside savings accounts as of late thanks to a series of interest rate hikes by the Bank of England (BoE), as well as increased competition in the sector.
The BoE last hiked rates to 5%, and analysts are expecting further hikes as inflation falls at a slower pace than predicted.
While this is bad news for mortgage holders as the cost of borrowing goes up, it’s good news for savers looking to park their cash into the tax free wrapper.
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While MW readers know too well a stocks and shares ISA may serve you well for long-term savings, for anyone looking to hold on to cash for the short-term or held back by the market volatility, a cash ISA may make good sense.
You can also park your cash within your investment ISA, but MoneyWeek recently revealed that interest rates on these platforms can be dismal, so grabbing a higher rate on cash ISA can be a good idea if you have yet to make use of this year’s £20,000 allowance.
To help you, we have rounded up the best cash ISA rates on the market today.
The best cash ISAs: easy access
Easy access cash ISAs do what they say on the tin, letting you access your savings without penalty.
| ACCOUNT | AER | MINIMUM INVESTMENT | FLEXIBLE ISA | NOTES |
| Shawbrook Bank Cash ISA | 4.33% | £1,000 | N | Open online |
| Charter Savings Bank Cash ISA | 4.3% | £5,000 | Y | Open online |
| Principality Building Society Cash ISA | 4.2% | £1 | Y | Open online |
| Leeds Building Society Cash ISA | 4.2% | £100 | N | Open online |
The best cash ISAs: one-year fixed rate
If you’re happy to lock your cash away without any withdrawals for a year, then you can earn a higher rate – in most cases, you’ll also need at least £1,000 to open these ISAs. Here are the best one-year fixed-rate ISAs available now.
| ACCOUNT | AER | MINIMUM INVESTMENT | NOTES |
| Shawbrook 1 Year Fixed ISA | 5.71% | £1,000 | Open online |
| Natwest 1 Year Fixed Rate ISA | 5.7% | £1,000 | Open online, in branch or via app |
| Kent Reliance 1 Year Fixed ISA | 5.54% | £1,000 | Open online or in branch |
The best cash ISAs: two-year fixed rate
If you have savings you’re happy to lock away for at least two years, you’ll find rates on cash ISAs above 5%.
| ACCOUNT | AER | MINIMUM INVESTMENT | NOTES |
| Natwest 2 Year Fixed ISA | 5.9% | £1,000 | Open online or in branch |
| Zopa 2 Year Fixed ISA | 5.61% | £1 | Open online |
| Shawbrook 2 Year Fixed ISA | 5.58% | £1,000 | Open online |
The best cash ISAs: three-year fixed rate
| ACCOUNT | AER | MINIMUM INVESTMENT | NOTES |
| Zopa 3 Year Fixed ISA | 5.56% | £1 | Open online |
| Close Brothers 3 Year Fixed ISA | 5.55% | £10,000 | Open online |
| Leeds Building Society 3 Year Fixed ISA | 5.5% | £100 | Open online, in branch or via post |
What you need to know about the best cash ISAs
When choosing a cash ISA, there are two main factors to look out for: how long you are comfortable locking your cash up for and the interest rate.
- Easy access ISA accounts allow you to withdraw funds without incurring a penalty.
- Fixed-rate cash ISAs offer a fixed rate of return – usually higher the longer you are prepared to lock your money away. But note: if you withdraw money before the end of the term, then you are likely to be penalised, usually with a reduction in the rate of interest.
Generally speaking, the longer you leave the money untouched, the more interest you can earn. Many ISAs are classed as ‘flexible’, meaning you can replace any funds you withdraw in the same tax year without affecting your annual ISA allowance – which is currently £20,000.
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