Best cash ISA rates – which cash ISAs pay the most interest?

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If you want to put your money into a cash ISA, which accounts pay the highest rates? Read on to find the best cash ISA rates.

The best cash ISA rates – what to look for

As I write this, you’ll get a higher rate of interest on fixed rate cash ISAs. But be aware that you normally can’t take money out of these accounts until the end of the term.

SAVVY TIP: More importantly, you generally only have a month or so to pay money into these accounts. You can’t normally top them up or pay into them on a monthly basis.

Best cash ISA rates

I’ve looked at the price comparison website Savings Champion, as well as banks and building societies’ own websites, to compile this list. You can also find information on the price comparison websites Moneyfacts and Moneysupermarket, but if you use Moneysupermarket, make sure you click on ‘all the accounts’ otherwise you’ll only be shown those that pay the comparison website a commission.

I’ve looked at the best five-year, three-year, two-year and one-year fixed rate cash ISAs, and the top three easy access cash ISAs. This is what I found:

The best five-year cash ISA

Charter Savings Bank 5 Year Fixed Rate Cash ISA pays 2.26% interest tax-free on balances from £1,000 to £1,500,000.

Setting up and running the account: You can only apply for and manage this account online.

Lets you pay in money from your existing cash ISAs? Yes. Withdrawals are also allowed, providing the withdrawal does not reduce the account balance below £1,000. This is subject to a charge of 270 days loss interest on the amount withdrawn.

Flexible ISA? No. This means any amount withdrawn cannot be replaced and will count towards your yearly ISA limit.

Interest paid? Interest is paid annually or monthly.

The best three-year cash ISA

Aldemore 3 Year Fixed Rate Cash ISA pays 1.95% interest tax-free on balances from £1,000.

Setting up and running the account: You can only apply for and manage the account online.

Lets you pay in money from your existing cash ISAs? Yes. Withdrawals are also allowed, subject to 180 days’ loss of interest.

Flexible ISA? Yes. You can replace money you’ve withdrawn without the replacement counting towards your annual ISA subscription limit, providing you replace the funds in the same tax year you withdraw them. You will need to open a new Cash ISA product at the interest rates available at the time, or you could pay the money into another Cash ISA product already held with us that allows additional deposits.

Interest paid? Interest is paid annually or monthly.

The best two-year fixed rate ISA

Paragon 2 Year Fixed Rate cash ISA pays 1.82% interest tax-free on balances from £500 to £100,000. If your balance falls below £500, Paragon will close your account and return any money to your nominated bank account. They will also return excess funds if your balance exceeds £100,000 plus any resulting interest.

Setting up and running the account: You can only set up and mange the account online.

Lets you pay in money from your existing cash ISAs? Yes. Withdrawals are also allowed, subject to 180 days’ loss of interest.

Flexible ISA? No. This means any amount withdrawn cannot be replaced and will count towards your yearly ISA limit.

Interest paid? Interest is paid annually or monthly.

The best one-year fixed rate cash ISA

Charter Savings Bank 1 Year Fixed Rate Cash ISA pays 1.60% interest tax-free on balances from £1,000 up to £1,500,000.

Setting up and running the account: You can only set up and manage the account online.

Lets you pay in money from your existing cash ISAs? Yes. Withdrawals are also allowed providing the withdrawal does not reduce the account balance below £1,000. This is subject to a charge of 150 days’ loss of interest on the amount withdrawn

Flexible ISA? No. This means any amount withdrawn cannot be replaced and will count towards your yearly ISA limit.

Interest paid? Interest is paid annually or monthly.

The three best easy access cash ISAs

Charter Savings Bank Easy Access Cash Isa – Issue 8 pays 1.40% interest tax-free on balances from £1,000 up to £1,500,000. If your balance drops below £1,000, your interest rate will be 0.10%.

Setting up and running the account: You can only set up and manage the account online.

Lets you pay in money from your existing cash ISAs? Yes. You can withdraw your money at anytime through their website.

Flexible ISA? No. This means any amount withdrawn cannot be replaced and will count towards your yearly ISA limit.

Interest paid? Interest is paid annually or monthly.

Virgin Money Double Take E-Isa Issue 4 pays 1.40% interest tax-free on balances from £1.

Setting up and running the account: You can only set up and manage this account online.

Lets you pay in money from your existing cash ISAs? Yes. However, you only have a maximum of two withdrawals per year.

Flexible ISA? No. This means any amount withdrawn cannot be replaced and will count towards your yearly ISA limit.

Interest paid? Interest is paid annually or monthly.

Leeds Building Society Limited Online Access ISA (Issue 8) pays 1.38% interest tax-free on balances from £1,000 up to £250,000. If the balance falls below £1,000, the interest rate drops to 0.05%.

Setting up and running the account: You can only set up and manage this account online.

Lets you pay in money from your existing cash ISAs? Yes. Unlimited withdrawals can be made without notice or loss of interest, as long as there is a minimum operating balance of £1,000.

Flexible ISA? No. This means any amount withdrawn cannot be replaced and will count towards your yearly ISA limit.

Interest paid? Interest is paid on maturity, which is the 15th January 2020. On maturity, the account is then transferred to the Maturity Access ISA.

Related articles:

Tax-free savings allowance explained; interest of up to £1,000 a year tax free

How to transfer a cash ISA

The basics of cash ISAs; making the most of tax-free savings

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