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In this regularly updated roundup, This is Money picks our five favorite cash Isas for savers in 2024.
is essential reading to help you choose the best savings account for your money that can also protect you from tax – and we detail the top deals with easy access and fixed interest rates.
This premium Isa roundup has been informing our readers of the best savings offers since 2014 – and is updated weekly – bookmark it for the latest developments.
Five of the Pigs: We’ve rounded up the best tax-free deals – and there’s currently little choice
How an Isa works and why you should have one
Every year in April, savers are given a new Isa allowance that qualifies for tax-free interest.
For the 2024/25 financial year, which starts on 6 April 2024 and ends on 5 April 2025, the limit is £20,000.
You can transfer Isa money in any way you want between an investment account and a savings account, whereas before you could only transfer it from savings to investments.
Cash Isa rates have risen, along with tax-free rates. It pays to open one to protect money from the tax man, especially with rising rates.
Isa rules dictate that you can only contribute to one Isa per tax year.
You can also transfer old Isa for better returns. Here’s a quick guide to Isa savings.
It is possible to change your cash Isa for the current year if you move the full amount, but it is far simpler to make the right choice straight away.
Get an Isa to beat savings tax
The cash savings Isa market has seen a significant improvement thanks to the rise in Bank of England interest rates. Best buy easy-access rates on a tax-free account pay more than 5 percent.
Many may wonder why bother? Especially considering that rates on tax-free accounts can be higher.
However, with inflation above target, it becomes even more important to make sure you get the most out of your savings.
And higher rates have drawn more people into the savings tax net, meaning Isa’s cash shelter is even more valuable.
An Isa is well worth having, despite the tax-free savings interest of £1,000 a year for basic-rate taxpayers and £500 for higher-rate taxpayers.
If you’re a basic rate taxpayer earning 5 per cent interest, if you have more than £20,000 in savings this will give you a tip in tax, for a higher rate taxpayer the figure is £10,000 and if you’re in a 45 tax bracket penny, they don’t get any savings.
You might also like to look at stocks and shares versions of an Isa – how to choose the best (and cheapest) DIY investment Isa.
Our five favorite Isas:
– Facts: £1 to open
– Transfers to: That
– Flexible: That
– This is money says: This is the best account if you’re looking for a real Isa with easy access that doesn’t cut your withdrawal rate. The rate does not include the bonus rate which also expires after 12 months.
An account can only be opened by downloading the Trading 212 app. There are no limits on how many times you can withdraw your money and Trading 212 will not reduce your interest rate to access your money.
Trading 212’s Isa is a flexible Isa which is a huge advantage for savers with the financial strength to maximize their Isa limit each year.
Flexible Isa schemes allow you to dip into your pot and, as long as you put the money back in during the same tax year, it doesn’t lose its tax-free envelope or use up any part of that year’s Isa allowance.
Other premium easy-access flexible cash Isais come from CMC Invest* at 4.86 per cent, Monument at 4.76 per cent, Chip* offering 4.58 per cent and Zopa at 4.55 per cent.
Any money deposited with Trading 212 is fully FSCS protected, as are all accounts on this list. Funds in the Trading 212 Isa are held in partner bank accounts with Barclays, NatWest and JPMorgan.
Clients can see the percentage of their cash held at each bank under interest on the cash tab in the Trading 212 app.
This means that if you already have money at Barclays, NatWest or JPMorgan, you will need to be careful not to exceed the £85,000 limit if you put money aside through Trading 212.
Interest is paid monthly.
Cash register, easy access, 5% (full data)
facts: £500
Transfers to: That
Flexible: Not
This is money says: At 5 per cent, Moneybox now offers the highest rate for a cash Isa. This is the best Isa for savers who just want to get the highest rate.
The rate includes a bonus rate of 0.55 percent for the first 12 months and the base rate is a variable of 4.45 percent.
Users can only make up to three free withdrawals without any impact on their exchange rate. Be warned, after the fourth withdrawal, the rate drops to just 0.75 percent. It will also drop to this level if the value of money in the Isa falls below £500.
You can transfer other Isas you have into a Moneybox Isa.
Moneybox’s Isa is not flexible, so any money withdrawn from it cannot be replaced within the same tax year without affecting your £20,000 Isa allowance. You will lose whatever amount you withdraw from the fee.
An Isa can be opened with a £500 deposit on the Moneybox app.
Money held in a Moneybox Isa is fully protected by the FSCS. Moneybox relies on several banks to provide FSCS protection for its cash Isa. He says these banks may change over time, but the banks he currently uses are:
- HSBC
- Santander UK
- National Westminster Bank
- Clydesdale Bank
- Bank of Scotland
- Lloyds Bank
- Qatar National Bank (QPSC)
- First Abu Dhabi Bank PJSC
- National Bank of Kuwait (International)
- The Bank of New York Mellon, London branch
The amount of money held in each bank may vary over time. Moneybox says it will never hold more than 50 percent of its total funds in one bank at any one time.
If you already have money in any of these banks, you’ll need to be careful not to exceed the £85,000 limit if you put money into Moneybox.
– Facts: £1 to open
– Transfers to: That
– Flexible: Not
– This is money says: Virgin Money now offers the best one-year Isa on the market. You can open and manage this Isa online with as little as £1 and it accepts transfers.
Kent Reliance, 2-year fix, 4.42% (full details)
– Facts: £1000 to open
– Transfers to: That
– Flexible: Not
– This is money says: Kent Reliance now offers the best two-year fixed rate Isa. You can open and manage this Isa online on the Kent Reliance website or in a Kent Reliance branch with a minimum balance of £1,000.
The best life of Isa
Moneybox, Cash lifetime Isa, 4.8% (full details)
– Facts: £1 to open
– Transfers to: That
– Flexible: Not
– This is money says: For those aged 18-39 who are either saving to buy their first home or towards retirement, this is the best value cash Lisa offer on the market.
Save up to £4,000 each tax year and get a 25 per cent government bonus. The offer is only available through its app.
The rate includes a fixed bonus of 1 percent for the first year, the base rate is 3.8 percent
SAVE MONEY, MAKE MONEY
1% cash back
1% cash back
About debit card spending. Max. £15/m*
Energy bills
Energy bills
Find out if you can save with a fixed tariff
Offer of free shares
Offer of free shares
No account fees and free stock trading
4.5% 1 year Isa
4.5% 1 year Isa
Hampshire Trust with Hargreaves Lansdown
Sipp fee offer
Sipp fee offer
Get six months with no Sipp fees
Affiliate links: If you download the This is Money product you can earn a commission. These deals have been selected by our editorial team because we think they are worth highlighting. This does not affect our editorial independence. *Chase: Cashback is available for the first year. Exceptions apply. 18+, UK residents.
Some links in this article may be affiliate links. If you click on them, we may earn a small commission. This helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
