Compare the best ISA rates for over-50s UK 2024

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.

FSCS logo
Is my money safe?

The Financial Services Compensation Scheme (FSCS) guarantees that it will step in to compensate the first £85,000 (£170,000 for a joint account) you have saved with a UK-authorised bank, building society or credit union in the event that the business goes bust.

Best cash ISA rates

Table: sorted by interest rate, promoted deals first
1 - 10 of 531
Name Product Account type Withdrawals Open with Deposit protection Interest rate Open via Incentive Table product description Apply link
Plum – Plum Cash ISA
Cash ISA
Instant access
From £1
FSCS logo
protected
5.17% AER variable (on balance over £100) (includes a 0.86% bonus )
Open via: mobile app
Go to site
View details
Chip – Chip Cash ISA (powered by ClearBank)
Cash ISA
Instant access
£1 - £85,000
FSCS logo
protected
5.1% AER variable
Open via: mobile app
Go to site
View details
Kent Reliance – Cash ISA - Easy Access - Issue 50
Cash ISA
Instant access
From £1,000
FSCS logo
protected
4.86% AER variable
Open via: branch, website
Go to site
View details
Kent Reliance – Cash ISA - Easy Access - Issue 50
Cash ISA
Instant access
From £1,000
FSCS logo
protected
4.86% AER variable
Open via: branch, website
Go to site
View details
Moneybox – Moneybox Cash ISA
Cash ISA
Instant access
From £500
FSCS logo
protected
4.75% AER variable (includes a 0.5% bonus )
Open via: mobile app
Go to site
View details
Kent Reliance – Cash ISA 1 Year Fixed Rate - Issue 97
Cash ISA
Instant access (charge applies )
From £1,000
FSCS logo
protected
4.7% AER fixed for 1 year
Open via: branch, website
Go to site
View details
Kent Reliance – Cash ISA 1 Year Fixed Rate - Issue 97
Cash ISA
Instant access (charge applies )
From £1,000
FSCS logo
protected
4.7% AER fixed for 1 year
Open via: branch, website
Go to site
View details
Aldermore – 2 Year Fixed Rate Cash ISA
Cash ISA
Instant access (charge applies )
From £1,000
FSCS logo
protected
4.55% AER fixed for 2 years
Open via: website
Go to site
View details
Aldermore – 2 Year Fixed Rate Cash ISA
Cash ISA
Instant access (charge applies )
From £1,000
FSCS logo
protected
4.55% AER fixed for 2 years
Open via: website
Go to site
View details
Aldermore – 30 Day Notice Cash ISA Issue 12
Cash ISA
30 days notice needed (charge applies )
From £1,000
FSCS logo
protected
4.5% AER variable
Open via: website
Go to site
View details
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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.

  • Chip – Chip Cash ISA (powered by ClearBank) - 5.1%
  • West Brom BS – WeBSave 60 Day Notice ISA (Issue 2) - 5.1%
  • Zopa – Smart ISA - Access ISA pot - 5.08%
  • Virgin Money – 1 Year Fixed Rate Cash ISA Exclusive Issue 13 - 5.05%
  • Progressive BS – 1 Year Double Access Cash ISA Account (Issue 3) - 5.05%

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

An overview of our cash ISA rates for over-50’s comparison

Rates up to 5.1% AER
Number of accounts 543
Number of brands 93
Minimum investment £0
Opening options Mobile app, branch, website, telephone, post

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. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.

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Written by

Matthew Boyle

Matthew Boyle is a banking and mortgages publisher at Finder. He has a 7-year history of publishing helpful guides to assist consumers in making better decisions. In his spare time, you will find him walking in the Norfolk countryside admiring the local wildlife. See full profile

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