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.
Compare the best ISA rates for over-50s UK 2021
If you're over 50 looking for the best ISA rates, this guide will provide all the information you need.
With an ISA you don’t need to pay tax on any interest earned, so you should definitely consider one when it comes to saving money for your retirement. Read on to find out more about their pros and cons, how they compare with bonds and how to find the best ISA rates for over 50s.
Best cash ISA rates
Table: sorted by interest rate, promoted deals first
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.
More guides on Finder
-
How do we rate stocks and shares ISAs?
We’ve rated stocks and shares ISAs to find the best one for different categories. Find out the categories we scored them on and how it works.
-
Best stocks and shares ISA in the UK
We’ve reviewed the best stocks and shares ISA in the UK and explained who they’re best suited to, with pros and cons.
-
Best stocks and shares ISA in the UK
We’ve reviewed the best stocks and shares ISA in the UK and explained who they’re best suited to, with pros and cons.
-
What is capital gains tax?
Want to know what capital gains tax is, how it works and when you need to pay it? Read our comprehensive guide on what you need to know about capital gains tax including what your CGT allowance is for the 2021/2022 tax year.
-
A beginner’s guide to cryptocurrency ETFs
If you’re looking for ways to gain exposure to Bitcoin and other digital currencies, cryptocurrency ETFs could be worth exploring. Find out what crypto ETFs are and how they work in this introductory guide.
-
Ethereum (ETH) price prediction 2021
What affects the value of Ethereum (ETH) and how might the price of ETH fluctuate in the year ahead? Find out in this comprehensive guide.
-
Bitcoin (BTC) price prediction 2021
Your guide to the factors affecting Bitcoin’s value and what to look for when forecasting bitcoin price changes in the weeks and months ahead.
-
Best business bank accounts for 2021
Want to avoid fees or integrate with your bookkeeping software? Here’s our pick of the top business current accounts.
-
Best business bank accounts for 2021
Want to avoid fees or integrate with your bookkeeping software? Here’s our pick of the top business current accounts.
-
Best business bank accounts for 2021
Want to avoid fees or integrate with your bookkeeping software? Here’s our pick of the top business current accounts.
Ask an Expert