If you want to put your money into a cash ISA, which accounts pay the highest rates?
Cash ISAs work in much the same way as standard savings accounts, but the interest you earn is always tax-free. You can learn more about how they work and whether this type of account is suitable for you in our article How cash ISAs work.
Recent days have seen plenty of speculation that the Chancellor Rachel Reeves might be considering scrapping Cash ISAs in a bid to persuade more people to invest rather than leave their money in cash. However, even if such a move were to go ahead, it’s extremely unlikely that this would impact money already held in Cash ISAs.
Sarah Coles, head of personal finance, Hargreaves Lansdown, said; “Cash ISAs are flourishing under pressure. They had a record year in 2024, and now we’re seeing an early start to the Cash ISA season. With decent rates and frozen tax thresholds pushing more people into paying tax on their savings, it’s easy to see why.
“It’s ironic that at the same time, there has been so much speculation over the future of the Cash ISA. Everyone should hold some cash, but not too much, and getting the balance right is always tricky. However, reducing the tax incentives for the cash ISA isn’t the answer, and could expose diligent savers to tax.”
Here’s our rundown of some of the current best buy ISAs, and the returns they offer.
Fixed rate cash ISAs
You usually, but not always, get a higher rate of interest on fixed rate cash ISAs, which as the name suggests pay a fixed return for a set period of time. You normally can’t take money out of these accounts until the end of the term.
More importantly, you often only have a month or so to pay money into these accounts, once opened. You can’t normally top them up or pay into them on a monthly basis.
Current best buys, according to savings website The Private Office are as follows:
1 Year:
Shawbrook
1 Year Fixed Rate Cash ISA Issue 115
Pays: 4.48%
Min investment: £1,000
The small print: You can’t withdraw your money without incurring any charges until the end of the fixed term.
Find out more at: Shawbrook
2 Year:
Close Brothers Savings
2 Year Fixed Rate Cash ISA
Pays: 4.41%
Min investment: £10,000
The small print: If you decide to close or transfer your ISA before maturity, you must withdraw the full amount and you will be charged the appropriate amount of interest.
Find out more at: Close Brothers Savings
3 Year:
Close Brothers Savings
3 Year Fixed Rate Cash ISA
Pays: 4.43%
Min investment: £10,000
The small print: If you decide to close or transfer your ISA before maturity, you must withdraw the full amount and you will be charged the appropriate amount of interest.
Find out more at: Close Brothers Savings
5 Year:
Close Brothers Savings
5 Year Fixed Rate Cash ISA
Pays: 4.30%
Min investment: £10,000
The small print: If you decide to close or transfer your ISA before maturity, you must withdraw the full amount and you will be charged the appropriate amount of interest on your account balance at the time of transfer.
Find out more at: Close Brothers Savings
Rates correct as at 17.03.2025
Variable rate cash ISAs
If you’d rather not tie up your cash savings, and prefer to have your money readily accessible in the event of an emergency, a variable rate cash ISA is likely to be your best bet.
Current best buy instant access cash ISAs include:
Plum
Plum Cash ISA
Pays: 4.81%
Minimum investment: £1
The small print: To qualify for the Plum Bonus rate you’ll need to ensure you don’t make any more than 3 withdrawals in a single year. If you withdraw more than 3 times in a year, the interest rate on your Cash ISA will drop to 2.50% AER (variable).
Find out more at: Plum
Tembo
Tembo Cash ISA
Pays: 4.80%
Minimum investment: £10
The small print: Unlimited same-day withdrawals.
Find out more at: Tembo
Monument
Easy Access Cash ISA
Pays: 4.76%
Minimum investment: £10,000
The small print: Easy access ISA. Interest is paid monthly.
Find out more at: Monument
Kent Reliance
Easy access cash ISA – Issue 55
Pays: 4.56%
Minimum investment: £1
The small print: Transfers and withdrawals are permitted without notice or penalty.
Find out more at: Kent Reliance
Charter Savings Bank
Easy Access Cash ISA – Issue 56
Pays: 4.55%
Minimum investment: £1
The small print: Interest will be paid one month after your initial deposit into your account and on that day in every month after that.
Find out more at: Charter Savings Bank
Rates correct as at 17.03.2025
Remember…
Once you’ve chosen a cash ISA account, you can’t simply deposit your money and forget about it. Rates change constantly, so you’ll need to keep an eye on how much interest you’re earning and move your money if you can find better returns elsewhere.
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