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Cash ISAs interest rates

ISA savings account enables you to take advantage of the cash ISA allowance with the security of bank account. This allows you to earn interest tax-free with no capital gains tax to pay on profits either. The current limit for both Cash ISAs and Stocks & Shares ISAs is £15,240 (for the 2016/17 tax year). This deposit is covered under the Financial Services Compensation Scheme (FSCS). For a fuller explanation of how this works please see Bank Deposit Accounts.

Investments that are taken out of an ISA wrapper lose their tax advantages; therefore if you wish to transfer your Cash ISA, you should contact your new provider rather than physically transferring the money yourself.

Cash ISA

A Cash ISA is similar to a normal savings account; the only difference is that the interest is not taxed. Typically, they have a short notice period or none at all and minimum deposits will vary.

Most cash ISAs are 'variable rate', meaning the rate received will change depending on the current Bank of England base rate and providers' own competitive reasons. Many of these accounts may include bonus periods after which the interest rates may be lowered. Although the main variable terms are shown here, investors are advised to check with providers before they purchase them.

Cash ISA AER As of Notice Min Deposit Introductory Bonus Gross Equivalent rate 20% income tax Gross Equivalent rate 40% income tax
Virgin Money ISA 1.41% 19/02/2016 None £1 N/A 1.76% 2.35%
The Coventry 1.40% 19/02/2016 Instant £1 N/A 1.75% 2.33%
NS&I Direct ISA 1.25% 19/02/2016 None £1 N/A 1.56% 2.08%

Fixed Cash ISA

These are effectively fixed rate bonds in an ISA wrapper and terms available will vary between one and five years. These investments are suitable for investors who are able to lock cash away for the entire term and each account will have different penalties for breaking these investment terms, therefore investors are advised to check with the provider before investing.

We have provided an Annual Gross Equivalent Rate which annualises the tax benefits and compounded growth on income earned over the term of the investment.

Fixed Cash ISA AER As of Term Min Deposit Introductory Bonus Gross Equivalent rate 20% income tax Gross Equivalent rate 40% income tax
Aldermore 1 Year Fixed 1.55% 19/02/2016 1yr £500 Fixed 1.94% 2.58%
Virgin Money E-ISA Issue 166 1.50% 19/02/2016 1yr £1 Fixed 1.88% 2.50%
Kent Reliance 1.50% 19/02/2016 1yr £1,000 Fixed 1.88% 2.50%
Post Office: Online ISA - 1 Year Fixed Rate Issue 5 1.45% 19/02/2016 1yr £500 Fixed 1.81% 2.42%
Chelsea Building Society Fixed Rate E-ISA 1.40% 19/02/2016 1yr £100 Fixed 1.75% 2.33%
The Nottingham Building Society Issue 19 1.85% 19/02/2016 2yr £500 Fixed 2.31% 3.08%
Metro Bank 2 Year Fixed Rate Issue 3 1.75% 19/02/2016 2yr £1 Fixed 2.19% 2.92%
Aldermore 2 Year Fixed 1.75% 19/02/2016 2yr £1,000 Fixed 2.19% 2.92%
Newcastle Building Society Issue 23 1.60% 19/02/2016 2yr £500 Fixed 2.00% 2.67%
Metro Bank 3 Year Fixed 2.00% 19/02/2016 3yr £1 Fixed 2.50% 3.33%
Bank of Cyprus UK 2.00% 19/02/2016 3yr £500 Fixed 2.50% 3.33%
Skipton BS: 3 Year Fixed Rate ISA 1.80% 19/02/2016 3yr £500 Fixed 2.25% 3.00%
Virgin Money Fixed Rate Cash E-ISA Issue 167 1.75% 19/02/2016 3yr £1 Fixed 2.19% 2.92%
M&S Bank Issue 24 1.60% 19/02/2016 3yr £500 Fixed 2.00% 2.67%
Metro Bank: 5 Year Fixed Rate Cash ISA 2.25% 19/02/2016 5yr £1 Fixed 2.81% 3.75%
Principality Building Society 2.20% 19/02/2016 5yr £500 Fixed 2.75% 3.67%
Newcastle Building Society Issue 9 2.10% 19/02/2016 5yr £500 Fixed 2.63% 3.50%

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