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Best ISA Rates

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 annual ISA allowance allows you to save up to £20,000 tax-free. Compare today's best rates below.

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Depositor Protection

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.

ISAs explained

What is an ISA and what does ISA stand for?

Individual Savings Accounts, more commonly known as ISAs, are a tax-free form of saving brought in by the UK Government in 1999 to replace Personal Equity Plans (PEPs) and Tax-Exempt Special Savings Accounts (TESSAs).

How does an ISA work?

Any returns received from funds held in an ISA are automatically exempt from being taxed. This is in contrast to traditional savings accounts which may require you to pay tax on interest earned, depending on your Personal Savings Allowance. However, you’ll need to be mindful of the annual ISA allowance.

What is the ISA allowance and when does it reset?

The annual ISA allowance is the maximum amount you can deposit into an ISA or across multiple ISAs within the tax year. As of the 2023/24 tax year, this threshold stands at £20,000.

Each tax year, your allowance will reset. This means when the new tax year begins on the 6th of April each year, you’ll receive a fresh ISA allowance of £20,000 to allocate.

 

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How many ISAs can I have?

Under the current ISA rules, you’re only allowed to pay into one of each of the four main types of ISA per tax year.

This is set to change as of the 2024/25 tax year, however, following an announcement from Chancellor of the Exchequer, Jeremy Hunt, in his Autumn Statement 2023.

What are the different types of ISA?

There are four main types of ISA available:

Cash ISAs

Stocks and shares ISAs

Lifetime ISAs

Innovative Finance ISAs (IFISAs)

 

Cash ISAs are perhaps most similar to traditional savings accounts. There are different varieties of cash ISA available: 

Easy access cash ISAs 

Notice cash ISAs

Fixed rate cash ISAs

Regular savings cash ISAs

 

You’ll also find Junior ISAs (JISAs) available to those under the age of 18.

What is the best type of ISA?

The best type of ISA will depend on your needs and circumstances, such as the amount of access you need to your cash, your savings goals and your attitude towards risk.

Those looking for guaranteed returns may prefer to opt for a cash ISA – with easy access cash ISAs offering the most flexibility when it comes to making further additions and withdrawals.

If you’re saving towards buying your first home or for your retirement, meanwhile, a Lifetime ISA is specifically designed to help meet these goals.

Otherwise, those who are looking for an investment opportunity and are willing to put their capital at risk could consider a stocks and shares ISA.

Can I put money into an ISA every month?

Whether you can pay into an ISA every month will depend on the type of account you hold. Regular savings cash ISAs, for example, are specifically designed for monthly contributions.

While many variable rate cash ISAs, such as easy access and notice ISAs, will also allow for further deposits, some fixed rate accounts may prohibit you from making additions to your initial deposit.

You can check whether an ISA accepts further additions by clicking ‘view further details’ next to an account in any of our ISA charts.

Are ISAs safe? Is my money protected?

The amount of protection your funds are afforded depends on the type of ISA your money is held in. As with traditional savings accounts, the Financial Services Compensation Scheme (FSCS) protects balances of up to £85,000 in most cash ISAs.

Similarly, investments of up to £85,000 in a stocks and shares ISA are protected by the FSCS should your provider go bust. However, it’s important to note this protection doesn’t cover any losses made on your investment.

Equally, returns aren’t guaranteed with an Innovative Finance ISA (IFISA) either. As a form of peer-to-peer lending (P2P), your funds won’t be protected by the FSCS if your provider were to collapse. moneyfactscompare.co.uk does not recommend the use of IFISAs. 

Read our guide on FSCS protection to learn more.  

When should I open an ISA?

ISAs can be opened any time, but keep in mind under current ISA rules you’re only allowed to open one of each of the main four types of ISA in the 2023/24 tax year.

This is set to change from the 2024/2025 tax year, though, as part of reforms to the ISA allowance.
You may find providers offer more attractive deals towards the end of a fiscal year (5 April) as they seek custom from savers looking to use up their annual allowance, in a phenomenon known as ISA season.

This trend typically continues into the new tax year (from 6 April), with providers aware their customers will have a fresh allowance to distribute. However, this doesn’t prevent providers from increasing rates at other times of the year, either in response to changes to the Bank of England base rate or as they look to raise funds, gain new customers and meet targets.

It’s good practice to regularly review the top ISA rates and consider switching to a new account if you find more competitive returns available.

 

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Ella Mower

Content Writer

ISA guides

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How do ISA transfers work?

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.

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The rules on inheriting ISAs

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2023-24 ISA allowance guide

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Download our complete guide to the ISA allowance for 2023/24. Restrictions, how to move accounts and taxation considerations.

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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.

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ISA News

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One-year fixed bonds outperforming longer-term fixes

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Your Personal Savings Allowance explained: Why is it still important in 2024?

20th February 2024

With over 1.4 million people predicted to become higher-rate taxpayers by the end of the financial year, it’s crucial to understand your Personal Savings Allowance.

With over 1.4 million people predicted to become higher-rate taxpayers by the end of the tax year, it’s crucial to understand your Personal Savings Allowance.

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Chip launches first cash ISA – how does it compare?

5th February 2024

App-based savings provider, Chip, launched its first product into the cash ISA market today, following “a year of rapid growth for the business in 2023”. Its Chip Cash ISA (powered by ClearBank) takes a competitive position on our easy access ISA chart, paying 4.75% AER monthly.

The Chip Cash ISA (powered by ClearBank) pays 4.75% AER.

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This marks the fourth consecutive time the base rate has gone unchanged.

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Fixed savings rates experience largest monthly drop since 2009

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Government meets pledge as inflation slows dramatically to 4.6%

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Bank of England keeps base rate unchanged for first time in almost two years

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Inflation falls as food prices rise at slower pace

20th September 2023

Core inflation, which excludes energy and food prices, also fell.

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Average easy access ISA rate reaches 3%

30th August 2023

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Bank of England makes 14th consecutive base rate increase

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Average one-year fixed cash ISA rate hits 5%

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The last time this rate was higher was November 2008.

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UK inflation drops to 7.9%: How will this affect your savings?

19th July 2023

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The latest drop sees UK inflation fall to the lowest annual rate since March 2022.

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Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.

Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.