Cash ISAs let you earn interest tax-free. Here’s how to find the best rates and what to look for in 2026.
Read more: See our Isas guide for a complete overview of this topic.
Best Cash ISA Rates by Type
Easy Access Cash ISAs
Easy access means withdraw anytime without penalty.
| Feature |
Look For |
| AER |
4.0-5.0% in 2026 |
| Withdrawals |
Unlimited |
| Minimum deposit |
Often £1 |
| Flexible ISA? |
Check — very useful |
Top Easy Access Features to Compare
| Provider Type |
Typical Rate |
Features |
| Challenger banks |
Higher |
Online only |
| Building societies |
Competitive |
Some branches |
| High street banks |
Lower |
Branch access |
Fixed Rate Cash ISAs
Lock your money away for better rates.
| Term |
Typical AER 2026 |
Best For |
| 1 year |
4.5-5.0% |
Short-term certainty |
| 2 years |
4.5-5.2% |
Medium-term saving |
| 3 years |
4.3-5.0% |
Longer commitment |
| 5 years |
4.0-4.8% |
Rate may be lower |
Note: Longer terms don’t always mean higher rates — depends on rate expectations.
Notice Cash ISAs
Give notice before withdrawing, typically better than easy access.
| Notice Period |
Typical Rate Premium |
| 30 days |
+0.1-0.2% |
| 60 days |
+0.2-0.3% |
| 90 days |
+0.3-0.5% |
| 120 days |
+0.4-0.6% |
How to Compare Cash ISA Rates
Key Terms Explained
| Term |
Meaning |
| AER |
Annual Equivalent Rate — includes compounding |
| Gross |
Before tax (same as AER for ISAs) |
| Variable |
Rate can change |
| Fixed |
Rate guaranteed for term |
| Bonus rate |
Inflated rate that drops after period |
Watch Out For
| Trap |
How to Avoid |
| Bonus rates |
Check rate after bonus ends |
| Introductory rates |
Note when they expire |
| Limited withdrawals |
Check how many free |
| Minimum balance |
Ensure you meet it |
| Rate cuts |
Fixed rate avoids this |
Cash ISA vs Regular Savings Account
When Cash ISA Wins
| Situation |
Cash ISA Advantage |
| Higher rate taxpayer |
£500 PSA fills quickly |
| Additional rate taxpayer |
No PSA at all |
| Large savings (£25k+) |
Will exceed PSA |
| Want long-term tax shelter |
ISA allowance compounds |
When Regular Account May Win
| Situation |
Regular Account Advantage |
| Basic rate, small savings |
PSA covers £50,000+ at 2% |
| Need absolute best rate |
Some pay slightly more |
| Under £1,000 interest/year |
PSA covers it |
Personal Savings Allowance (PSA)
| Tax Band |
PSA Amount |
Interest Before Tax |
| Basic rate (20%) |
£1,000 |
First £1,000 tax-free |
| Higher rate (40%) |
£500 |
First £500 tax-free |
| Additional rate (45%) |
£0 |
All interest taxed |
Break-Even Calculator
At what savings level does an ISA make sense?
| Rate |
PSA-Covered Savings (Basic Rate) |
PSA-Covered (Higher Rate) |
| 2% |
£50,000 |
£25,000 |
| 3% |
£33,333 |
£16,667 |
| 4% |
£25,000 |
£12,500 |
| 5% |
£20,000 |
£10,000 |
If you have more than these amounts, a Cash ISA saves tax.
Choosing Between ISA Types
Decision Framework
| Factor |
Easy Access |
Notice |
Fixed |
| Rate |
Lower |
Medium |
Higher |
| Flexibility |
High |
Medium |
Low |
| Certainty |
Variable |
Variable |
Guaranteed |
| Best when |
Need access |
Can plan ahead |
Rates may fall |
Splitting Your ISA Allowance
| Approach |
Allocation |
| All easy access |
Lower returns, maximum flexibility |
| All fixed |
Higher returns, no flexibility |
| Split 50/50 |
Balance of both |
| Ladder |
Multiple fixed terms ending in sequence |
Fixed Rate Ladder Strategy
| Year |
Maturing |
Rate When Opened |
| 2026 |
1-year ISA from 2025 |
|
| 2027 |
2-year ISA from 2025 |
|
| 2028 |
3-year ISA from 2025 |
|
Each year: Roll maturing ISA into new 3-year. Always have money accessible.
Flexible Cash ISAs
Why Flexibility Matters
| Feature |
Standard ISA |
Flexible ISA |
| Withdraw £5,000 |
Uses space |
Uses space |
| Replace £5,000 same year |
Counts as new |
Doesn’t use allowance |
| Emergency access |
Costs allowance |
No penalty |
Example: Flexible ISA Benefit
| Action |
Standard ISA |
Flexible ISA |
| Start: £20,000 deposited |
£0 allowance left |
£0 allowance left |
| Withdraw: £3,000 for emergency |
£0 allowance left |
£3,000 “replacement space” |
| Replace: £3,000 later in year |
Can’t — over limit |
Can — doesn’t count |
Not all ISAs are flexible — specifically ask providers.
Transferring Cash ISAs
Transfer vs Withdraw
| Method |
Effect on ISA Status |
| Transfer |
Stays tax-free |
| Withdraw |
Loses ISA status |
| Withdraw and reopen |
Uses this year’s allowance |
How to Transfer
| Step |
Action |
| 1 |
Open new ISA (don’t close old one) |
| 2 |
Request transfer from new provider |
| 3 |
New provider contacts old |
| 4 |
Money transfers (up to 30 working days) |
| 5 |
Old ISA closes automatically |
Transfer Times
| Transfer Type |
Maximum Time |
| Cash ISA to Cash ISA |
15 working days |
| S&S ISA to Cash ISA |
30 working days |
| This year’s ISA |
Must transfer all |
| Previous years’ ISA |
Can transfer partial |
What to Look for in a Cash ISA Provider
Security
| Protection |
Coverage |
| FSCS protection |
Up to £85,000 per person, per institution |
| Shared banking licenses |
Some banks share £85,000 limit |
| Building societies |
Same FSCS protection |
Banks That Share Licenses (Examples)
| Group |
Banks |
| Check before opening |
Same license = shared £85k |
Always verify current FSCS protection status.
Provider Features
| Feature |
Importance |
| Online access |
Essential for most |
| App quality |
Convenience |
| Phone support |
For problems |
| Branch access |
Personal preference |
| Transfer ease |
Check reviews |
Making the Most of Cash ISA Rates
Rate Alert Strategy
| Action |
Benefit |
| Set rate alerts |
Know when better rates available |
| Review quarterly |
Transfer if significantly better elsewhere |
| Before tax year end |
Max out allowance at best available |
Timing Deposits
| Timing |
Consideration |
| Lump sum at year start |
Maximum time earning interest |
| Monthly contributions |
Pound cost averaging (less relevant for cash) |
| End of tax year |
Risk missing deadline |
Annual ISA Review Checklist
| Check |
Action |
| Current rate |
Compare to market |
| Bonus expired? |
Transfer if rate dropped |
| Better rates available? |
Transfer existing ISAs |
| This year’s allowance used? |
Top up before April |
Cash ISA Rates History
How Rates Have Moved
| Period |
Typical Easy Access Rate |
| 2020-2021 |
0.5-1.0% |
| 2022 |
1.0-2.0% |
| 2023 |
2.5-4.0% |
| 2024-2025 |
4.0-5.0% |
| 2026 |
4.0-5.0% (current) |
Rate Outlook Considerations
| Factor |
Impact on Cash ISA Rates |
| Bank of England base rate |
Direct correlation |
| Inflation |
Influences BoE decisions |
| Competition |
Challenger banks push rates up |
| Savings ratio |
High savings = lower rates offered |
Provider Profiles
Marcus by Goldman Sachs
| Feature |
Details |
| ISA type |
Easy access |
| Flexible ISA? |
Yes |
| Access |
Online and app |
| Transfers in |
Yes |
Strengths: Usually near top of best-buy tables, Goldman Sachs backing, clean experience.
Weaknesses: Easy access only (no fixed), online-only.
Best for: Competitive easy access rate with flexibility.
Chip
| Feature |
Details |
| ISA type |
Easy access |
| Flexible ISA? |
Yes |
| Access |
App only |
| Transfers in |
Yes |
Strengths: Excellent app, auto-save features, competitive rates.
Weaknesses: App-only (no web interface), newer platform.
Best for: App-first users who want automation (round-ups, auto-save).
Moneybox
| Feature |
Details |
| ISA type |
Easy access + Lifetime ISA |
| Flexible ISA? |
Yes |
| Access |
App only |
| Transfers in |
Yes |
Strengths: Round-up savings feature, combines Cash ISA and LISA, good for first-time buyers.
Weaknesses: Rates not always market-leading, app-only.
Best for: First-time buyers who want to save regularly or need a LISA alongside cash savings.
Paragon Bank
| Feature |
Details |
| ISA type |
Fixed rate |
| Flexible ISA? |
No (fixed rate) |
| Access |
Online |
| Transfers in |
Yes |
Strengths: Consistently top fixed rates, FSCS protected, range of terms (1-5 years).
Weaknesses: Fixed only, less well-known brand, basic interface.
Best for: Locking in a market-leading fixed rate.
Shawbrook Bank
| Feature |
Details |
| ISA type |
Easy access + Fixed |
| Flexible ISA? |
Varies by account |
| Access |
Online and app |
| Transfers in |
Yes |
Strengths: Good rates on both easy access and fixed, FSCS protected.
Weaknesses: Not always top-of-market, smaller brand.
Best for: Balance of rate and flexibility.
Virgin Money
| Feature |
Details |
| ISA type |
Both |
| Flexible ISA? |
Yes |
| Access |
Online and branches |
| Transfers in |
Yes |
Strengths: Established brand, some branch access, flexible ISA, good range of accounts.
Weaknesses: Rarely offers the absolute top rate.
Best for: Those who want an established provider with branch access as backup.
Nationwide Building Society
| Feature |
Details |
| ISA type |
Both |
| Flexible ISA? |
Some accounts |
| Access |
Online and branches |
| Transfers in |
Yes |
Strengths: Member bonus rates, building society values, wide branch network.
Weaknesses: Non-member rates weaker, can be confusing which account to choose.
Best for: Existing Nationwide members who benefit from loyalty rates.
Which Providers Offer Flexible Cash ISAs?
Flexibility lets you withdraw and replace money in the same tax year without using extra allowance. Not all ISAs offer this:
| Provider |
Flexible ISA? |
| Marcus (Goldman Sachs) |
✅ Yes |
| Virgin Money |
✅ Yes |
| Nationwide |
✅ Some accounts |
| Chip |
✅ Yes |
| Paragon Bank |
❌ No (fixed rate) |
| Shawbrook |
Varies by account |
Always confirm with the provider before opening — this changes, and it varies by specific product.
Cash ISA vs Other Options
Cash ISA vs Premium Bonds
| Factor |
Cash ISA |
Premium Bonds |
| Return |
Guaranteed rate |
Prize-based (average ~4%) |
| Tax |
Tax-free |
Tax-free |
| Access |
Depends on type |
Easy (few days) |
| FSCS |
Yes (£85k) |
Government backed (unlimited) |
| Excitement |
None |
Prize anticipation |
Cash ISA vs Savings Bonds
| Factor |
Cash ISA |
Savings Bond |
| Rate |
Slightly lower |
Slightly higher |
| Tax |
Tax-free |
Taxable (may use PSA) |
| Best for |
Above PSA threshold |
Below PSA threshold |
Where Cash ISAs Fit
| Savings Level |
Best Option |
| Under £10,000 |
Highest rate regardless of tax wrapper |
| £10,000-£25,000 |
Consider tax position |
| Over £25,000 |
Cash ISA valuable for higher/additional rate |
Current Best Practice
Recommended Approach 2026
| Situation |
Recommendation |
| Emergency fund |
Easy access Cash ISA |
| Saving for 1-2 years |
Fixed rate Cash ISA |
| Long-term cash savings |
Consider S&S ISA instead |
| Already have S&S ISA |
Use remaining allowance for cash |
ISA Allowance Allocation
| If |
Then |
| Only need cash savings |
Use Cash ISA |
| Want growth potential |
Use S&S ISA for long-term |
| Split allocation |
Cash ISA for short-term, S&S for long-term |
| Buying first home |
Consider LISA too |