Easy access cash ISAsUp to 5.16%
Best cash ISA rates UK 2024
Whether you want to lock cash in for a set time or keep it easy access, use our comparison table to find the best ISA with rates up to 5.16%.
Cash ISAs are savings accounts you'll never pay tax on, and interest rates on them shot up in 2023. Just like a normal savings account, you can get cash ISAs that are easy access or fixed term. Use our comparison table to see what rates they offer and read our guide below to find out if they're worth it.
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
What is a cash ISA?
A cash individual savings account (ISA) is a savings account where you don’t pay tax on the interest you earn. It’s that simple! Everything you can do with a normal savings account you can do with a cash ISA. The tax-free bit is the only real difference.
With normal savings accounts, you get taxed on interest you earn beyond your annual tax-free allowance. A cash ISA lets you keep 100% of the interest, which is why it’s been popular.
Who can open an ISA?
Any person over 18 in the UK can open and put £20,000 into a cash ISA each tax year. Once your money is in a cash ISA, it stays tax-free year in and year out. In addition, if you were born between 6 April 2006 and 5 April 2008, you can open one cash ISA before you turn 18.
What’s the “best” ISA?
Generally, the best ISA has the highest interest rate. However, there are different types of cash ISAs, depending on whether you need quick access to your money, and you might want to consider a stocks and shares ISA, too.
- If you want to be able to withdraw your money quickly, then you’ll want an easy access cash ISA.
- If you’re happy to lock your money away for a year or more in return for a better rate, then a fixed rate cash ISA might be more up your street.
- If you’re happy to put money aside for a long time and are willing to take the risks that come with investing, then check out stocks and shares ISAs.
Is my money safe in a cash ISA?
Most cash ISAs are completely protected by the Financial Services Compensation Scheme (FSCS), which means all deposits up to £85,000 per provider are guaranteed by the government if the provider were to go bust.
How many people have an ISA?
3.9 million stocks and shares ISAs and 7.1 million cash ISAs were subscribed to in the 2021/2022 financial year, according to the latest data. During the 2024/25 tax year, a quarter of Brits plan to open at least one ISA, according to a Finder survey.
In 2016, the popularity of ISAs took a knock, and the number of people opening one dropped. That was at least in part due to the personal savings allowance. When savings rates don’t keep pace with inflation, that can also deter people from saving.
Personal savings allowance
Thanks to a rule change in April 2016, basic-rate taxpayers don’t have to pay any tax on the first £1,000 of interest earned in banks or building societies. This is known as the personal savings allowance (PSA), and it has encroached on what used to be the territory of the cash ISA.
ISAs vs inflation
You’d be hard-pressed to find any cash ISAs that can beat inflation. During any period of high inflation, it’s incredibly difficult to protect your nest egg, as inflation erodes the value of your savings.
How are inflation and interest rates linked?
Generally speaking, when interest rates are lower than inflation, people tend to save less and borrow and spend more. Let’s clarify this with an example:
Let’s say inflation is running at 5%. This means a basket of shopping that costs £100 now will cost £105 in a year’s time.
Now, imagine you’ve also got £100 in a cash ISA paying 2%. That £100 will be only £102 next year.
Are ISAs worth it?
Even though you can typically find better rates in different savings accounts and current accounts, ISAs still have their benefits.
- ISA interest doesn’t count towards your PSA. You can make interest in your ISA and still get the £1,000 of tax-free savings through your PSA.
- ISAs give protection against future interest rate changes. If interest rates rise, people will have to pay more tax (in other savings accounts that aren’t tax-free). An ISA offers protection against this.
- Protects savings if you move up a tax bracket. Having a cash ISA would ring-fence your savings if you expect you might have to pay more tax in the not-too-distant future.
Which are the best cash ISAs at the moment?
Our best cash ISAs 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.
- Moneybox – Moneybox Cash ISA - 5.16%
- Marsden BS – Tracker Cash ISA Bond (Issue 1) - 5.15%
- Marsden BS – Tracker Cash ISA Bond (Issue 2) - 5.15%
- Chip – Chip Cash ISA (powered by ClearBank) - 5.1%
- West Brom BS – WeBSave 60 Day Notice ISA (Issue 2) - 5.1%
An overview of our cash ISA comparison
| Number of accounts | 526 |
|---|---|
| Cash ISA types include | Easy access, fixed-rate, notice |
| Best easy access cash ISA rate | 5.16% |
| Best fixed-rate cash ISA rate | 5.05% |
| Fixed-rate cash ISA terms | 11 months - 7 years |
| Best notice cash ISA rate | 5.1% |
| Minimum investment | £1 |
| Maximum investment | £150,000 |
| Opening options | Branch, website, mobile app, post, telephone |
Bottom line
Saving is always a wise idea, and if you can find an ISA account that does what you need it to – for example, if you want to access your money quickly from a cash ISA or you’re happy to take a punt on a stocks and shares ISA, with the risk that goes with that – then opening an account is worth considering.
But it’s most definitely worth looking at other savings options as well before you decide where to put your money away.
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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