Compare the best ISA rates for over-50s UK 2023
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
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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.
Which are the best ISAs for over-50s at the moment?
Our best ISAs for over-50s are the highest interest rates available. To get the latest rates, we use Moneyfacts data, which covers nearly the full market of savings products and is checked and updated daily. We don’t include accounts from private banks.
All the cash ISAs in our list have savings protection – for most, this is the Financial Services Compensation Scheme (FSCS). Other schemes include that of NS&I, which is 100% backed by HM Treasury, and the Gibraltar Deposit Guarantee Scheme.
- Virgin Money – 1 Year Fixed Rate Cash ISA Exclusive Issue 6 - 5.85%
- Shawbrook Bank – 1 Year Fixed Rate Cash ISA Bond Issue 81 - 5.83%
- Charter Savings Bank – 1 Year Fixed Rate Cash ISA - 5.8%
- Close Brothers Savings – 1 Year Fixed Rate Cash ISA - 5.78%
- UBL UK – 1 Year Fixed Rate Cash ISA - 5.77%
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
- Earn tax-free interest on your savings
- You can deposit funds into a cash ISA and a stocks and shares ISA
- 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
An overview of our cash ISA rates for over-50’s comparison
|Rates up to||5.85% AER|
|Number of accounts||517|
|Number of brands||89|
|Opening options||Website, branch, post, mobile app, telephone|
The 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
Cost of living statistics 2023
We looked into what Brits are planning to sacrifice to keep their savings and finances afloat amid a cost of living crisis.
What is a tracker savings account and how does it work?
Find out how tracker savings accounts work and how you could benefit.
Working from home and hybrid working statistics
Our research found that 38% of Brits work from home at least some of the time. We look at who is working from home and how working from home affects productivity.
Best 5-year fixed-rate bonds
Discover all you need to know about 5-year fixed-rate bonds, including how to find the best one for you.
The safest bank in the UK
While there is no such thing as absolute safety, there are a few things you can look at to try and figure out how likely your bank is to collapse.
Business savings accounts
Is your UK business looking for a savings account? We explore the benefits of opening one and what you should consider before you do.
Disposable income in the UK
Where in the UK can you make the most and spend the least?
What Is Annual Equivalent Rate (AER)?
The AER, or Annual Equivalent Rate, is the official rate for savings accounts. It’s designed to allow easy comparisons between accounts.
Cash ISA vs savings accounts: Which is better?
Choosing between ISAs or normal savings accounts is easier than it seems. Pick the one which pays out most! Read our guide for tips on how to get the most out of your savings pot.
Landbay: Peer-to-Peer Lending and Borrowing
Explore the alternative investment options on offer with Landbay. The property backed P2P provider might be the right option for you.