We’ve scoured the market to find the best interest on cash ISAs so you can make more from your savings. Cash ISAs – individual savings accounts – are structured as a “tax wrapper” which just means there’s no tax on the interest you earn from money in the account.
| Interest Rate | ISA Account | Rate details | Flexible ISA |
|---|---|---|---|
| 6.5% | XTB Stocks & Shares ISA | Variable. Paid on uninvested cash* | ✔️ |
| 5.26% | Chip Cash ISA (powered by ClearBank) | Variable tracker*** | ✔️ |
| 5.04% | Plum Cash ISA | Variable**** | ❌ |
| 4.85% | CMC Invest | Variable | ✔️ |
| 4.80% | Moneyfarm Cash ISA | Variable** | ✔️ |
| 4.80% | Tembo Money Cash ISA | Variable | ❌ |
| 4.50% | Lightyear Cash ISA | Variable. Tracks base rate | ✔️ |
| 4.50% | Trading 212 Cash ISA | Variable | ✔️ |
- *Inc bonus 2% for 90 days. Available to new/existing customers with an ISA 1 March-30 April 2025. T&Cs
- ** Inc bonus 0.43% AER for 12 months. T&Cs
- ***Inc bonus 0.94% AER for 3 months. New customers, with ISASEASON code. T&Cs
- ****Inc bonus of 1.50% AER (variable) if kept for 12 consecutive months. New customers. T&Cs
Calculate Your Cash ISA Returns
You can use our Cash ISA returns calculator to see what your tax-free savings will be worth in the future based on your initial and regular contributions.
When using this ISA calculator, please take into consideration that you get tax relief only on up to £20,000 a year.
What are Cash ISAs?
You can save up to £20,000 each tax year – your ISA allowance – in a cash ISA without paying tax on any of the interest you earn on your savings, and you don’t have to declare it on your tax return. ISAs are useful for high earners with a lot of savings who might not be covered by the personal savings allowance, which lets you earn £1,000 of savings interest tax-free as a basic-rate tax payer, or £500 if you’re in the higher-rate band.
Cash ISAs can be either variable-rate or fixed-rate accounts. Variable means the rate can change depending on what the Bank of England base rate is, while a fixed-rate account offers you an unchanged rate for a certain time period, but you’ll usually have to lock your money away for 1-5 years.
A no-notice, variable-rate cash ISA lets you access your money at any time, or you could go for one with a notice period or a fixed term for a better rate, but the interest rate you can earn is subject to change.
Some ISAs are “flexible”, which means that if you withdraw some money from them, you can put that amount back into the ISA in the same tax year without affecting your £20,000 limit. If your ISA isn’t flexible, every deposit will count towards your annual £20,000.
- Find out more: The Best Flexible ISA Rates
Different Types of Cash ISA
Fixed vs variable-rate vs uninvested cash ISAs
With variable cash ISAs, the interest rate may change based on the underlying rate set by the Bank of England so it’s important to understand that the interest rate you receive can change.
With fixed-rate cash ISAs the interest rate is fixed for a certain time and you are guaranteed to receive that rate of income.
Some ISA providers offer interest on uninvested cash. These are generally stocks and shares ISA accounts that pay interest if you have cash on account – money that you haven’t yet used to buy investments. Investment platforms can offer better cash interest rates as an incentive for you to open an account as they hope that customers will then go on to manage their investments through them.
How Do Cash ISAs Work?
You can open and hold as many ISAs as you like but you can pay in a maximum of £20,000 per tax year across all of them. That £20,000 ISA allowance renews each tax year. You can also transfer your money from one ISA to another ISA that pays a better interest rate.
Just remember that you mustn’t withdraw the money in cash and pay it into the new account. You have to do an actual ISA transfer, straight from one ISA to another, otherwise you lose the tax benefits.
Advantages of Cash ISAs
- The main advantage of a variable rate cash ISA is that you don’t pay tax on the income you receive.
- They can be flexible and easy access, so you can get your savings when you need them, although some accounts can have a fixed term and still pay a variable rate.
- Your savings are protected up to £85,000 in the event your provider collapses, as long as it’s regulated by the Financial Conduct Authority (FCA). All the providers in this guide are FCA-regulated.
- If you save for longer in a fixed-rate account, you may get better rates. But if you need to withdraw your money early, you may have to pay a penalty or the account may be closed.
Disadvantages of Cash ISAs
- The returns may not be as good as a stocks and shares ISA, although this depends on the performance of the stock market.
- Cash ISAs don’t always offer the best interest rates – as the product is tax efficient, they are more expensive for providers to operate. So you may find you get a better interest rate with a regular savings account or a fixed-rate bond.
- If you have a variable-rate cash ISA, the rate can change. So if the Bank of England’s base rate falls, your rate will likely follow.
- With a fixed-rate ISA, you may not be able to access your cash for a fixed term, and this can work against you if rates go up and you’re locked in to a lower-paying deal. Depending on whether you think interest rates will go up or down, you could choose a longer or shorter fixed term for your ISA.
Cash ISA Alternatives
If you have already used up your ISA allowance or want to see if there are better saving account interest rates, Hargreaves Lansdown offers an Active Savings account, where you can save across a range of different savings accounts without having to open up a new account each time.
We have also listed below some of the latest saving account switching offers and providers with some of the best interest rates for your savings.
| Savings Platform | Best Rate | Savings Accounts | Minimum Deposit | Customer Rating | More Info |
|---|---|---|---|---|---|
 | 4.65% | 80+ | £1 | (Based on 2 reviews)
| See Rates |
 | 4.5% | 60+ | £1 | (Based on 1,758 reviews)
| See Rates |
 | 4.56% | 200+ | £10,000 | (Based on 2 reviews)
| See Rates |
 | 4.52% | 31 | £1,000 | (Based on 1,094 reviews)
| See Rates |
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