The best cash ISAs – August 2023

Easy access and notice ISA rates are now at their highest since 2009. Here are the best cash ISAs on the market today.

Seedling growing out of a jar of coins
(Image credit: © Getty Images)

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.

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Shawbrook Bank Cash ISA 4.33%£1,000NOpen online
Charter Savings Bank Cash ISA 4.3%£5,000YOpen online
Principality Building Society Cash ISA 4.2%£1YOpen online
Leeds Building Society Cash ISA 4.2%£100NOpen 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.

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Shawbrook 1 Year Fixed ISA 5.71%£1,000Open online
Natwest 1 Year Fixed Rate ISA5.7%£1,000Open online, in branch or via app
Kent Reliance 1 Year Fixed ISA 5.54%£1,000Open 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%.

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Natwest 2 Year Fixed ISA 5.9%£1,000Open online or in branch
Zopa 2 Year Fixed ISA 5.61%£1Open online
Shawbrook 2 Year Fixed ISA 5.58%£1,000Open online

The best cash ISAs: three-year fixed rate

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Zopa 3 Year Fixed ISA 5.56%£1Open online
Close Brothers 3 Year Fixed ISA 5.55%£10,000Open online
Leeds Building Society 3 Year Fixed ISA 5.5%£100Open 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.

Rupert Hargreaves

Rupert is the Deputy Digital Editor of MoneyWeek. He has been an active investor since leaving school and has always been fascinated by the world of business and investing. 

His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks. 

Rupert was a freelance financial journalist for 10 years before moving to MoneyWeek, writing for several UK and international publications aimed at a range of readers, from the first timer to experienced high net wealth individuals and fund managers. During this time he had developed a deep understanding of the financial markets and the factors that influence them. 

He has written for the Motley Fool, Gurufocus and ValueWalk among others. Rupert has also founded and managed several businesses, including New York-based hedge fund newsletter, Hidden Value Stocks, written over 20 ebooks and appeared as an expert commentator on the BBC World Service. 

He has achieved the CFA UK Certificate in Investment Management, Chartered Institute for Securities & Investment Investment Advice Diploma and Chartered Institute for Securities & Investment Private Client Investment Advice & Management (PCIAM) qualification.