Earn 5.10% AER variable with a Chip Cash ISA
Earn 5.10% AER variable with a Chip Cash ISA
- 4.99% gross variable paid monthly
- Tax-efficient and flexible
- Withdraw without penalty or impacting your ISA allowance
The best savings account for £20,000 is likely to be the one that pays you the most interest while giving you the level of access that you need. You can usually get a better rate if you're willing to give a certain amount of notice before making withdrawals or to commit to not making withdrawals at all for an agreed period. Plus, since you can invest £20,000 each year into an ISA, your savings can earn you tax-free interest. We scour savings rates daily to help you find a good home for your hard-earned £20,000.
We scan the savings market daily and automatically update the best offers highlighted throughout this guide.
In terms of tax-free savings, Chip is currently offering 5.1% on an easy access ISA. If you're happy to give 30 days notice before making any withdrawals, then FirstSave is currently offering 4.85%. If you're happy to consider a fixed-rate ISA (where you won't be able to access your savings during the fixed term), you could earn 4.8% over 12 months with Punjab National Bank (International) Limited.
Outside of ISAs, you could earn 6.25% with easy access at Leeds Building Society, 5.32% on Oxbury Bank's 90-day notice account or 5.22% on Gatehouse Bank's 6-month fixed-rate bond (note that you typically can't access your money at all with a fixed-rate bond).
Best easy access | Leeds Building Society – Shared Ownership Saver (6.25%) |
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Best cash ISA | West Brom Building Society – WeBuilding Societyave 60 Day Notice ISA (Issue 2) (5.1%) |
Best fixed-rate bond | Gatehouse Bank – 6 Month Fixed Term Woodland Saver (5.22%) |
Best notice account | Oxbury Bank – 90 Day Notice Base Rate Tracker (Issue 1) (5.32%) |
Best current account | Kroo (4.35%) |
Even greater returns may be possible with investment products such as a stocks and shares ISA, if you're willing to risk getting back less than you originally invested. Only consider stocks if you won't need to spend the money for several years (5 years is a widely-used rule of thumb).
With £20,000 in Chip's easy access cash ISA paying 5.1% you'd earn £1,020.00 over a year, or £85.00 per month. Aldermore's 4.5% 30-day notice account would pay £900.00 over a year (£75.00 monthly), while Punjab National Bank (International) Limited's 4.8% 1-year fixed-rate ISA would pay £960.00 over a year (£80.00 monthly).
For those who have already used their 2024/2025 ISA allowance, or who are willing to consider forfeiting access to their savings altogether for the duration of a fixed-rate bond, Oxbury Bank's 5.32% 90-day notice account would pay £1,064.00 over a year (£88.67 monthly) on £20,000, while Gatehouse Bank's 6-month fixed rate bond would pay £1,044.00 over a year (£87.00 monthly).