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Variable Rate Cash ISAs

Variable Rate ISAs are Tax-Efficient Savings Accounts that pay a variable rate of interest, that customers can either access immediately or after a certain notice period. In the comparison table below, discover the latest rates for all top providers.

Compare today's best variable ISA rates today.

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Best Rates - Variable Rate ISAs

Best Rates - Variable Rate ISAs

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We found 193 products in total, of which 22 have links to providers.

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Selecting ‘Provider Links First’ brings all products that you can apply for directly via Moneyfacts to the top of the chart in rate order. Products that do not have an ‘Go To Provider's Site’ button will appear below, again in rate order. Selecting ‘Rate’ will change the chart to list all products in rate order. Products that have ‘Go To Provider's Site’ links will still be in the list but in rate position.

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  • Plum Plum Cash ISA
    AER
    5.17%
    Includes a bonus
    Account Type
    Cash ISA
    Notice
    None
    Interest Paid
    Monthly
    Go To Provider's Site
  • Chip Chip Cash ISA (powered by ClearBank)
    AER
    5.10%
    Account Type
    Cash ISA
    Notice
    None
    Interest Paid
    Monthly
    Go To Provider's Site
  • Charter Savings Bank Easy Access Cash ISA - Issue 47
    AER
    4.97%
    Account Type
    Cash ISA
    Notice
    None
    Interest Paid
    Anniversary
    Further Options ˅
    Go To Provider's Site
    AER
    4.97%
    Account Type
    Cash ISA
    Notice
    None
    Interest Paid
    Monthly
    Go To Provider's Site
  • Kent Reliance Cash ISA - Easy Access - Issue 50
    AER
    4.86%
    Account Type
    Cash ISA
    Notice
    None
    Interest Paid
    Yearly
    Further Options ˅
    Go To Provider's Site
    AER
    4.86%
    Account Type
    Cash ISA
    Notice
    None
    Interest Paid
    Monthly
    Go To Provider's Site
  • Leeds BS Limited Issue Online Access ISA (Issue 72)
    AER
    4.75%
    Account Type
    Cash ISA
    Notice
    None
    Interest Paid
    Yearly
    Go To Provider's Site
  • SAGA Saga Cash ISA
    AER
    4.75%
    Includes a bonus
    Account Type
    Cash ISA
    Notice
    None
    Interest Paid
    Monthly
    Go To Provider's Site
  • Zopa HL Active Savings - Easy Access Cash ISA
    AER
    4.67%
    Account Type
    Cash ISA
    Notice
    None
    Interest Paid
    Monthly
    Go To Provider's Site
  • Buckinghamshire BS Double Access Cash ISA
    AER
    4.65%
    Account Type
    Cash ISA
    Notice
    None
    Interest Paid
    Yearly
    Further Options ˅
    Go To Provider's Site
    AER
    4.65%
    Account Type
    Cash ISA
    Notice
    None
    Interest Paid
    Monthly
    Go To Provider's Site
  • Aldermore 30 Day Notice Cash ISA Issue 12
    AER
    4.50%
    Account Type
    Cash ISA
    Notice
    30 Day
    Interest Paid
    Anniversary
    Further Options ˅
    Go To Provider's Site
    AER
    4.50%
    Account Type
    Cash ISA
    Notice
    30 Day
    Interest Paid
    Monthly
    Go To Provider's Site
  • Aldermore Easy Access Cash ISA Issue 1
    AER
    4.25%
    Account Type
    Cash ISA
    Notice
    None
    Interest Paid
    Anniversary
    Further Options ˅
    Go To Provider's Site
    AER
    4.25%
    Account Type
    Cash ISA
    Notice
    None
    Interest Paid
    Monthly
    Go To Provider's Site
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.

Provider Links

‘Go To Provider's Site’ links are where we have an arrangement with a provider so you can move directly from our site to theirs to view more information and apply for a product. We also use ‘Speak to A Broker’ links where we have an arrangement with a preferred broker to move you directly to their site. Depending on the arrangement we may receive a modest commission either when you press a 'Go To Provider's Site' or 'Speak To A Broker' button, when you call an advertised number or when you complete an application following a link from our website.

Variable rate cash ISAs explained

At a glance

  • Variable rate ISAs offer tax-free savings that give customers the option of accessing their funds either immediately or after a certain notice period.
  • While ISAs come with certain restrictions, their tax-exempt status makes them a valuable tool in any saver’s investment toolbox.

While they come with more restrictions than non-ISA accounts, variable cash ISAs still offer plenty of flexibility. There are generally two types of variable ISA: notice ISAs and easy access.

Variable rate ISAs with a notice period usually require some advance warning before the bank or building society will let you take the funds out of your account, while easy access ISAs generally allow additions and withdrawals without limit, however there are now an increasing number of providers that restrict how many withdrawals can be made in a year.

This is in contrast with fixed rate ISAs, which typically do not allow any access until a certain period has passed, in exchange for higher and set rates. Even if you find the best variable ISA rate, and this can beat fixed rates, there’s always a chance that it can lessen over time – hence the variable part. While this makes it a gamble, the access options these accounts offer could certainly make it worth the risk.

Why should I choose one?

The main benefit of any ISA is that your savings remain tax-free for as long as they are in an ISA. This means you can accumulate quite a savings pot over time, which may well be able to gain enough interest to breach the Personal Savings Allowance.

Specific reasons to pick a variable cash ISA are if you think rates might increase soon and you don’t want to commit your funds to a fixed rate deal, or if you are approaching the time when you will require the funds – such as when you’re closing in on that all-important first home deposit amount.

Most variable rate ISAs will allow you to withdraw your funds – either instantly or following a notice period. This can make them an appealing option for those who don't want to lose access to their savings. However, withdrawing money and depositing it back into your ISA could affect your annual ISA allowance.

If your ISA is flexible, you can withdraw and replace funds within the same tax-year without affecting your allowance. However, if it isn’t a flexible ISA, any deposit into the account will count towards your allowance, even if you’re replacing money that you’ve previously withdrawn.

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How much can I save in a variable ISA?

Per tax year (which runs from 6 April of one year to 5 April of the next year), you are restricted by the ISA allowance as to what you can put away.

This means that you can put this amount of money into a new or existing variable rate ISA. If you also want to save in a different kind of ISA (say a stocks & shares ISA), you should note that the allowance covers all of them combined. So, if you want to save in both a cash ISA and stocks & shares ISA, you’ll have to decide whether you want to put an equal £10,000 in each account or divide the funds up differently.

While you’re only able to put a certain amount of new money into an ISA per tax year, you are able to transfer your existing ISA funds across providers without limit. So, if you see a better variable rate elsewhere, you should be able to transfer your whole pot over in one go – just be sure to follow the ISA rules, otherwise you might end up getting in trouble. Bear in mind that not all ISAs allow funds to be transferred in, it depends on the provider.

Advantages and disadvantages

  • Tax-free while the funds remain in the ISA
  • Access possible either instantly or with a certain amount of notice
  • Can withdraw and replace funds within the same tax year, if needed (if your provider allows this, not all do)
  • Can add funds throughout the year if you’d rather not invest the full ISA allowance in one go
  • Variable ISA interest rates tend to be somewhat lower than their non-ISA variable savings counterparts, but this depends on the wider market
  • You can only deposit up to your annual allowance in ISAs per tax year
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Ashley Seager

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