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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

Matthew Boyle
Matthew Boyle

Posted

Fact checked

Best cash ISA rates

Table: sorted by interest rate, promoted deals first
Data indicated here is updated daily
Name Product Account type Withdrawals Min. opening balance Interest rate Apply link
Aldermore – 1 Year Fixed Rate Cash ISA
Aldermore
Cash ISA
Instant access (penalty applies)
£1,000
0.55% AER fixed for 1 year
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View details
NatWest – Cash ISA
NatWest
Cash ISA
Instant access
£0
0.01% AER variable

View details
Gatehouse Bank – 5 Year Fixed Term Cash ISA
Gatehouse Bank
Cash ISA
Instant access (penalty applies)
£1,000
1.3% AER fixed for 5 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 – 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
Gatehouse Bank – 3 Year Fixed Term Cash ISA
Gatehouse Bank
Cash ISA
Instant access (penalty applies)
£1,000
0.9% AER fixed for 3 years

View details
Newcastle BS – Five Year Fixed Rate ISA (Issue 45)
Newcastle Building Society
Cash ISA
Instant access (penalty applies)
£500
0.8% AER fixed until 24.02.26

View details
Newcastle BS – Five Year Fixed Rate ISA (Issue 45)
Newcastle Building Society
Cash ISA
Instant access (penalty applies)
£500
0.8% AER fixed until 24.02.26

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 retirements?
  4. What 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’re over 50 years old 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 the finding the best ISA rates is to use price comparison websites.

Why choose ISAs for retirements?

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 nearer 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.

What 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 a tax-free savings account which 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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