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Compare the best ISA rates for over-50s

If you're over 50 looking for the best ISA rates, this guide will provide all the information you need.

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Matthew Boyle
Updated
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Best cash ISA rates

Table: sorted by interest rate, promoted deals first
Data updated daily
Name Product Account type Withdrawals Min. opening balance Interest rate Apply link
Aldermore – 3 Year Fixed Rate Cash ISA
Aldermore
Cash ISA
Instant access (penalty applies)
£1,000
0.7% AER fixed for 3 years
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View details
Aldermore – 2 Year Fixed Rate Cash ISA
Aldermore
Cash ISA
Instant access (penalty applies)
£1,000
0.6% AER fixed for 2 years
Go to site
View details
Aldermore – 1 Year Fixed Rate Cash ISA
Aldermore
Cash ISA
Instant access (penalty applies)
£1,000
0.45% AER fixed for 1 year
Go to site
View details
Shawbrook Bank – 7 Year Fixed Rate Cash ISA Bond Issue 3
Shawbrook Bank
Cash ISA
Instant access (penalty applies)
£1,000
1.25% AER fixed for 7 years

View details
Shawbrook Bank – 7 Year Fixed Rate Cash ISA Bond Issue 3
Shawbrook Bank
Cash ISA
Instant access (penalty applies)
£1,000
1.25% AER fixed for 7 years

View details
Shawbrook Bank – 5 Year Fixed Rate Cash ISA Bond Issue 25
Shawbrook Bank
Cash ISA
Instant access (penalty applies)
£1,000
1.1% AER fixed for 5 years

View details
Shawbrook Bank – 5 Year Fixed Rate Cash ISA Bond Issue 25
Shawbrook Bank
Cash ISA
Instant access (penalty applies)
£1,000
1.1% AER fixed for 5 years

View details
Leeds BS – 5 Year Fixed Rate Cash ISA (Issue 118)
Leeds BS
Cash ISA
Instant access (penalty applies)
£100
1% AER fixed until 30.06.26

View details
Newcastle BS – Five Year Fixed Rate ISA (Issue 48)
Newcastle Building Society
Cash ISA
Instant access (penalty applies)
£500
1% AER fixed until 06.07.26

View details
Close Brothers Savings – 5 Year Fixed Rate Cash ISA
Close Brothers Savings
Cash ISA
Withdrawals not permitted
£10,000
1% AER fixed for 5 years

View details
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What's in this guide?

  1. Best cash ISA rates
  2. How to find the best ISA rates for over-50s
  3. Why choose ISAs for retirement?
  4. Which is better: ISAs or bonds?
  5. Pros and cons of an ISA
  6. Bottom line

How to find the best ISA rates for over-50s

If you are over 50 years old and you’re looking for the best ISA rates, you may as well compare the whole market. ISAs are available to anyone aged over 16. There may be some providers only offering their ISAs to over-50s, but there’s no guarantee that these providers will offer superior rates. Even if they do, these deals will still be found within traditional price comparison website results.

Whatever age you are, your best bet for finding the best ISA rates is to use price comparison websites.

Why choose ISAs for retirement?

The key benefit of saving for your retirement inside an ISA is that you’ll pay no tax on your savings interest. This could be particularly important as your retirement approaches and you (hopefully) have a lot of money stored away.

Stocks and shares ISAs are generally regarded as a better bet if you’re planning on saving for retirement, as they tend to deliver better long-term returns than cash ISAs.

Still, with either type of account, you have the option to withdraw your funds without too many negative implications.

Then, there’s the lifetime ISA, where you can earn up to £32,000 in free government money to put towards your retirement on top of any interest earned.

Still, if you are planning on saving for your retirement in cash or stocks and shares, you may as well do so within a tax-free wrapper.

Which is better: ISAs or bonds?

Bonds are a contract, where you lend money to a third party and get it back with interest after a determined amount of time.

Fixed-rate ISAs are tax-free savings accounts that pay interest, but you won’t be permitted to withdraw the money outside of the fixed-rate period.

So, the result is the same for the customer and the interest rates on offer are similar too.

The only key difference is that you won’t pay tax on savings interest within an ISA.

However, since the introduction of the personal savings allowance, which states that basic-rate taxpayers and higher-rate taxpayers can earn £1,000 and £500 of tax-free savings interest per year respectively, this difference only really affects the country’s highest earners.

Pros and cons of an ISA

Pros

  • Earn tax-free interest on your savings
  • You can deposit funds into a cash ISA and a stocks and shares ISA

Cons

  • There is a limit on the amount you can deposit per tax year
  • To get the best rates, you’ll have to lock up your funds for a few years

Bottom line

ISAs can be a useful savings tool especially if you’re saving for your retirement, but there are no special benefits available for over-50s.

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

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