Home ISA
ISAs are tax-free savings accounts available to UK residents over the age of 16. Various types of ISA are available, and if a better rate is available elsewhere, it’s possible to transfer ISAs to other providers. The 2022/23 ISA allowance allows you to save up to £20,000 tax-free. View today's best rates below or read our guide to ISAsto learn more.
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Today's best ISA rates
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3.05%
4.20%
3.80%
3.05%
4.25%
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4.25%
4.11%
4.20%
3.50%
3.25%
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3.05%
4.25%
4.11%
4.20%
4.20%
3.50%
3.80%
3.05%
3.25%
4.25%
Today's best savings rates
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AER
4.45%
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3.05%
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4.45%
3.05%
Other products
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Note
Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme (FSCS) up to a maximum level of protection of £85,000 per person per institution. All new savings or bank accounts provided to UK customers are now covered by the FSCS.
Disclaimer
All rates subject to change without notice. Please check all rates and terms before investing or borrowing.
Latest ISA news
Fixed bond rates stall as variable rates continue to rise
16th January 2023
New Moneyfacts data shows average interest rates failed to rise across both one-year and longer-term fixed bonds, but variable rates rose for another consecutive month.
Average interest rates failed to rise across both one-year and longer-term fixed bonds, but variable rates rose for another consecutive month.
Savings rates rise to highest level in over a decade
19th December 2022
Savings rates rose for the 10th consecutive month for the first time since Moneyfacts records began in February 2007.
Savings rates rose for the 10th consecutive month for the first time since Moneyfacts records began in February 2007.
Inflation eases slightly, but what does it mean for savings?
14th December 2022
Falling petrol prices sees inflation drop back but increases in alcohol prices in pubs and restaurants means cost of living remains stubbornly high.
Inflation continues to take its toll on savings pots, but savvy savers could still find a better return.
Why Junior ISAs and Children's Savings Accounts aren’t so bah humbug this Christmas
8th December 2022
While making a gift of a savings account to a child may appear to be a Scrooge-like move, there are more good reasons to do so than usual this Christmas.
Moneyfacts data shows gifting a child a savings product may not be such a Scrooge-like move this year.
A guide to cash ISAs
At a glance
- ISAs are one of the most popular ways to save, and with the interest that you earn in these accounts paid tax-free, it is easy to see why.
- The ability of ISAs to accumulate tax-free benefits and the hope that interest rates will rise means ISAs remain an important savings option, despite the introduction of the Personal Savings Allowance.
Which ISA to choose?
There is a wide variety of cash ISAs on offer, which mainly mirror the types of account on offer in the traditional savings market.
Easy access cash ISAs
Easy access cash ISAs are probably the simplest type of cash ISA, as they allow instant access to your funds. While most easy access ISAs allow unlimited withdrawals, it’s worth noting that some restrict the number of withdrawals that are allowed. Some easy access ISAs also include a short-term bonus which boosts their rate, usually for 12 months. Once the bonus period expires, it is important to check whether the ISA remains competitive, and potentially transfer your ISA if it does not.
Fixed rate ISAs
Fixed rate ISAs tend to pay the best interest rates because providers are happy to pay more in return for knowing they will have the funds for a set amount of time. Terms usually range from one to five years, with the longer the term agreed, the higher the rate of interest that is paid. However, if you want to access your fixed rate ISA funds before the term expires, an interest penalty will normally have to be paid and the ISA may be closed.
Regular savings ISAs
If you want to put a smaller amount away each month, a regular saving ISA may be for you. In return for promising to put a minimum amount of money away on a regular basis, these accounts often pay a higher amount of interest. It should be noted, however, that missing a month or withdrawing the cash usually means the better rate will be lost.
Notice ISAs
If you are happy to give notice before accessing your ISA funds, notice ISAs tend to pay a higher rate of interest than easy access ISAs. Notice periods vary, but typically range between 30 and 180 days. Interest penalties for earlier withdrawals usually fall in line with the notice period.
What is the ISA allowance?
In the 2022/23 tax year, the ISA allowance is £20,000. You can choose to use your ISA allowance in a cash ISA, astocks & shares ISA, an innovative finance ISA, alifetime ISA(which has a lower limit of £4,000) or any combination of the four, as long as you don't exceed the annual allowance. This means that the most you can pay into a cash ISA in any tax year is £20,000; if you do this, you will not be able to put any money into any of the other types of ISA. You must pay your money in before 6 April 2023 if it is to count towards the annual ISA limit for the 2022/23 tax year.
Since the introduction of thePersonal Savings Allowancein April 2016, which allows basic rate taxpayers to earn £1,000 of savings income tax-free (£500 for higher rate taxpayers), questions have been raised over the value of using an ISA for savings. However, for the vast majority of savers, making use of their ISA allowance still makes sense. This is because the tax benefits in an ISA are cumulative, meaning you can shelter ever larger sums from tax year-on-year.
While the Personal Savings Allowance is currently adequate for most savers to avoid paying tax on their savings without using an ISA, should savings rates rise tax may become an issue.
If the Government were to review the way savings are taxed in the future, the Personal Savings Allowance seems far more vulnerable to change than the more established ISA regime. It would be extremely difficult to justify the removal of tax advantages from money already held in ISAs compared to lowering or even scrapping the Personal Savings Allowance.
ISA FAQs
How much can I put into an ISA?
Because of their tax advantages, the Government limits the amount that one person can pay into an ISA each tax year. A tax year runs from 6 April to 5 April the following year.
We’ve gathered together information on this year’s ISA allowance, as well as many other important taxation considerations. This includes the current income tax rates and personal savings allowance, for those who aren’t sure whether they need to worry about taxation on their savings returns, as well as pension rates, inheritance tax and much more.
Can I have more than one ISA?
You can hold a cash ISA, astocks & shares ISA, an innovative finance ISA and alifetime ISAall in the same tax year.
However, what you can’t do is put new money into more than one of the same type of ISA in the same tax year. So, if you have already opened a cash ISA after 6 April of the current year, and have made contributions into it, you cannot open another cash ISA and pay into it until the next tax year.
Can I withdraw cash whenever I like?
This is likely to depend on the type of ISA you have and any rules that your ISA provider has for making withdrawals. Witheasy access ISAs, you can usually withdraw your money when you want to. However, withfixed rate ISAs, your funds are supposed to be tied up until the end of the fixed term.
In reality, most fixed rate ISAs will allow early access to funds, but an interest penalty will have to be paid. Similarly, while a notice period is meant to be observed if you have a notice ISA, some providers will allow earlier withdrawals on an interest penalty.
Can I take money out of a cash ISA and put it back in?
If your ISA is ‘flexible’, you can take out money then replace it during the same tax year without reducing your current year’s allowance. It should be noted, however, that ISA providers do not have to offer the ‘flexible ISA’ option, so you should always check with your provider first.
Inheriting ISAs
It is now possible for a surviving spouse or civil partner to inherit the ISA savings of a loved one when they die and continue to benefit from the tax-free benefits built up. This can be done using an additional, one-off ISA allowance, equal to the value of the deceased’s ISA holdings.
The ‘additional permitted subscription’ allows the survivor to re-shelter the assets in an ISA in their own name, without encroaching on their own ISA allowance for that tax year. Although inheritance tax (IHT) will still apply, transfers between spouses on death are IHT free.
Is my money safe in an ISA?
As long as the ISA is provided by a UK regulated bank or building society account, it is protected under the Financial Services Compensation Scheme (FSCS). This means that the first £85,000 of money saved with a particular financial institution is covered should the ISA provider fail.
Moneyfacts tip 
If you have built up a total ISA fund in excess of £85,000, you may want to think about spreading the money between different providers.
What are the advantages of ISAs?
The main advantage of an ISA is its tax-free status, with returns and capital growth free from income and capital gains tax. This is important because the interest you earn from a traditional savings account may be subject to income tax; so, depending on how much savings interest you earn, up to 45% of this may be taxable.
Who can open an ISA?
The fact that ISAs are accessible to almost all has also played a key part in their success. Anyone who is resident in the UK for tax purposes and aged 16 or over is entitled to open a cash ISA. The age rises to 18 for a stocks & shares ISA. Crown employees, such as diplomats or members of the armed forces, are eligible too, along with their spouses or civil partners.
Moneyfacts tip
Looking to save for a child? View today'sbest Junior ISA ratesthat pay interest tax-free.
Best ISA Rates
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Top ISA guides
When it comes to tax-free savings, there are now several different ISA types to choose from. Our guide will help you choose between a cash or investment ISA.
When it comes to tax-free savings, there are now several different ISA types to choose from. Our guide will help you choose between a cash or investment ISA.
Should I invest in an ISA or my pension?
Although rules around when and how we can take our pensions are more flexible now, the complexity of the market can make decisions difficult.
Although rules around when and how we can take our pensions are more flexible now, the complexity of the market can make decisions difficult.
Did you know that you can inherit your spouse's/civil partner's ISA savings? This guide explains the rules on inheriting ISAs and the important things you need to know.
What you need to know about claiming and investing an inherited ISA, and retaining its tax-free status.
Using an ISA transfer is important as its the only way to retain the tax-free status of your funds. Our helpful guide explains what you should know before you transfer.
Using an ISA transfer is the only way to retain the tax-free status of your funds. Our helpful guide explains what you should know before you transfer.
