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Best Cash ISA Accounts in the UK

Elizabeth Anderson

Written by Elizabeth Anderson
Fact-checked by Steven Hatzakis
Edited by Jeff Anberg

September 30, 2024

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We've been reviewing financial products and services and writing about U.K. markets since 2016. Blain Reinkensmeyer, Elizabeth Anderson and Steven Hatzakis have each placed thousands of trades, including shares, options, futures, cryptos, and forex. Find out more about us and how we test.

A cash ISA lets you grow your savings tax-free, making it a popular choice in the U.K. With around 7 million cash ISAs paid into each year, it is an attractive option for those who wish to protect their earned interest from being taxed while keeping their savings safe from stock market volatility.

If you’re saving for a short-term goal like a house deposit or wedding, a cash ISA might be ideal. It offers a set interest rate, though this can fluctuate over time with the market. In this guide, I’ll walk you through the top cash ISA accounts in the U.K., focusing on the interest rate offered, whether the ISA is flexible, their low minimum deposit requirements, and transfer options.

Best Cash ISA Accounts in the UK

Here are my picks for the best cash ISA accounts in the U.K. for 2024, based on my expert analysis and extensive testing. All providers are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000

  • Trading 212 - Top interest rate
  • Plum - High interest rate
  • Hargreaves Lansdown - Best for ease of use
  • Chip - A great app
  • Zopa - Offers both easy-access and fixed-rate ISAs
  • Virgin Money - Wide range of options
Trading 212
4.5/5 Stars 4.5 Overall

Top interest rate

Minimum Deposit£1
Share Trading: 0-9 Deals/ Month£0
ISAYes
SIPPNo

Trading 212 offers commission-free share dealing and is a great option for those looking to simply execute share or ETF trades. Novice investors or those looking for more diversification through mutual funds may find better options elsewhere. Read full review

Pros
  • Offers ISAs
  • User-friendly mobile app
  • Commission-free stock and ETF dealing
  • Offers practice accounts
Cons
  • Does not offer a SIPP
  • Limited educational materials for research
  • No mutual funds or bonds
Plum
4.5/5 Stars 4.5 Overall

High interest rate

Minimum Deposit£1
Share Trading: 0-9 Deals/ MonthN/A
ISAYes
SIPPYes

Plum is a money management app that helps users save, invest, and manage their spending. You can link your Plum account to other bank accounts to track your spending across multiple accounts as well as create savings goals and savings pots. You can invest in a limited range of funds and US stocks.

Pros
  • Helps you get a better understanding of your finances and manage your money better
  • ‘Round up’ feature makes it easy to save and invest
  • Generous interest rate offered on cash savings
Cons
  • Limited investment range for experienced investors
  • Monthly £2.99 subscription fee for the Plum investment ISA
  • Fund management fees are charged in addition to this
  • ISA is not flexible
Hargreaves Lansdown
4.5/5 Stars 4.5 Overall

Best for ease of use

Minimum Deposit£1
Share Trading: 0-9 Deals/ Month£11.95
ISAYes
SIPPYes

As the U.K.’s biggest investment platform for individual investors, Hargreaves Lansdown offers a wide range of investment choices for either beginners or seasoned investors. However, its fees are generally more expensive than rival brokers, which can become an issue for large investment pots. Read full review

Pros
  • Offers a wide range of accounts
  • No custody charges for Junior ISAs
  • Plentiful educational materials
Cons
  • Stock trading fees are high
  • Charting features are not as sophisticated as other platforms
Chip
4.0/5 Stars 4.0 Overall

A great app

Minimum Deposit£1
Share Trading: 0-9 Deals/ MonthN/A
ISAYes
SIPPNo

Chip is an investment and savings app that appeals to younger savers and investors. It offers easy-access savings accounts and cash ISAs as well as investment accounts. Chip offers competitive interest rates on its cash saving accounts. Its investment fees are low, although the investment range is limited to funds. The platform fee is 0.25% a year on top of a monthly £1 fee.

Pros
  • Limited range of diversified funds, making it easy for beginners to start investing
  • High interest rate on cash savings
Cons
  • The limited investment options may not appeal to experienced investors
  • Chip's stocks and shares ISA through ChipX costs £5.99 a month (£65 a year), although there are no platform fees
Zopa
4.0/5 Stars 4.0 Overall

Offers both easy-access and fixed-rate ISAs

Minimum Deposit£1
Share Trading: 0-9 Deals/ MonthN/A
ISAYes
SIPPNo

Zopa is an online bank offering personal loans, savings accounts, car finance, and credit cards. Zopa does not offer investment services so you cannot invest in the stock market through a stocks and shares ISA or SIPP. But it does offer competitive rates of interest on its cash savings accounts if you are looking for a short-term place to save money.

Pros
  • Wide range of savings accounts paying generous interest
  • Offers access to both easy-access and fixed-rate deals through one account
  • Flexible cash ISA
Cons
  • Does not offer investment services
  • You have to transfer a minimum of £500 if transferring a cash ISA to Zopa
Virgin Money
3.5/5 Stars 3.5 Overall

Wide range of options

Minimum Deposit£1
Share Trading: 0-9 Deals/ MonthN/A
ISAYes
SIPPNo

Virgin Money is a full-service bank, owned by Nationwide Building Society, with around 90 branches in the U.K. You can also manage your accounts online and through the Virgin Money app. As a bank, Virgin offers a wide range of financial products including current accounts, savings, loans, investments, insurance, and mortgages.

Pros
  • Virgin is a full-service bank, owned by Nationwide Building Society as of October 2024
  • Wide range of different cash ISA and savings options
  • Accounts can be managed through one of Virgin’s branches or stores
Cons
  • Does not offer a SIPP
  • You need a current account with Virgin Money to access the top rates of interest
  • Limited investment options

Top interest rate - Trading 212

Company Overall Rating Minimum Deposit ISA SIPP Visit Site
Trading 212 logoTrading 212
4.5/5 Stars £1 Yes No

Interest rate: Investing app Trading 212 launched a cash ISA in May 2024. The current interest rate of 5.1% is the highest of any U.K. provider, making it one of the best cash ISAs in my view.

Account type: Trading 212 offers an easy-access cash ISA, meaning you can withdraw your money or transfer your account at any time. The ISA is also flexible—if you withdraw money and put it back in during the same tax year this won’t reduce your overall allowance.

Trading 212 does not offer fixed-rate cash ISAs, which means there is no guarantee the interest rate will remain at this high amount. The rate is likely to drop if the Bank of England reduces the U.K. base interest rate again.

Account features: Still, Trading 212’s cash ISA is currently the best-paying easy-access cash ISA available. It’s easy to open an account or to transfer a cash ISA from another provider. The Trading 212 app is great, making it easy to keep track of your money. I like the fact you can see your daily earnings through interest whenever you open the app. You can also view your account on the Trading 212 website. Some providers are app-only.

If you are saving for the long-term, then Trading 212’s stocks and shares ISA may be a better fit for you. Trading 212’s stocks and shares ISA pays 5.1% interest on any uninvested cash, so you can still earn interest on money not invested in the stock market. Explore more about its other offerings by reading my full review of Trading 212.

High interest rate - Plum

Company Overall Rating Minimum Deposit ISA SIPP Visit Site
Plum logoPlum
4.5/5 Stars £1 Yes Yes

Interest rate: Plum’s easy-access cash ISA offers a generous 4.92% interest, although this drops to 4.04% after 12 months. You can open an account with a £1 deposit, although if you have less than £100 in Plum’s cash ISA then the interest you’ll receive drops to 3%.

Account type: One point to note is that Plum’s cash ISA is not flexible, meaning withdrawals that are paid back in during the same tax year may not be allowed if you have already maxed out your £20,000 ISA allowance for the year.

Account features: Plum’s cash ISA accepts transfers in from other providers. However, you will get a lower interest rate of 4.04% rather than the top rate of 4.92%.

Best for ease of use - Hargreaves Lansdown

Company Overall Rating Minimum Deposit ISA SIPP Visit Site
Hargreaves Lansdown logoHargreaves Lansdown
4.5/5 Stars £1 Yes Yes

Interest rate: Hargreaves Lansdown's ISA options currently include an easy-access account with Zopa paying 4.4%, or a one-year fixed cash ISA with OakNorth Bank paying 4.25% interest. Bear in mind that Hargreaves Lansdown charges a commission to its banking partners, so this may mean a lower interest rate is offered than if you were to open an account with the provider directly.

Account type: Hargreaves Lansdown’s cash ISA is offered through its Active Savings Account. Hargreaves Lansdown has partnered with multiple banks and savings providers to offer a range of easy-access, fixed, or limited-access accounts.

The benefit of this is that you can hold accounts with various providers all through one account with Hargreaves Lansdown. This could be a great option if you already have an investment ISA with the broker.

Account features: You cannot transfer a cash ISA from another provider directly to the Hargreaves Lansdown cash ISA. However, you can transfer to their stocks and shares ISA first and then transfer into the cash ISA. Read more about all of its other offerings by visiting my comprehensive review of Hargreaves Lansdown.

Great app - Chip

Company Overall Rating Minimum Deposit ISA SIPP Visit Site
Chip logoChip
4.0/5 Stars £1 Yes No

Interest rate: Chip’s easy-access cash ISA pays 4.84%. It’s flexible so you don’t need to worry about losing any ISA allowance on withdrawals if the money is replaced in the same tax year.

You can open an account with just £1. However, you can only open an account through the Chip app, and not online through the web.

Account features: There are no limits on withdrawals and you won’t get a reduced interest rate for accessing your money – unlike Plum which reduces the interest rate to 3% after four withdrawals.

One downside of the Chip cash ISA used to be that it didn’t allow transfers in – meaning you couldn’t move funds from another ISA provider into your Chip account. But this has now changed and Chip accepts transfers from cash ISAs held with other providers. You’ll need to transfer the full balance though as Chip doesn’t allow partial ISA transfers.

Overall, Chip’s offer is competitive, making a Chip cash ISA a good option. The Chip app is great to use and Chip also offers other savings and investment accounts.

Access to both easy-access and fixed accounts - Zopa

Company Overall Rating Minimum Deposit ISA SIPP Visit Site
Zopa logoZopa
4.0/5 Stars £1 Yes No

Interest rate: Zopa’s Smart ISA offers interest of 4.8% for the first year, dropping to 4.3% after you’ve had the account for 12 months.

Account type: The Zopa Smart ISA is flexible, meaning you can take money out as needed and put it back without affecting your overall £20,000 annual ISA allowance. Another bonus is that Zopa’s cash ISA allows transfers in, although you have to transfer a minimum of £500.

Account features: A great feature about Zopa is that it offers access to both easy-access and fixed rate deals within one account. You can lock part of your money away for up to five years to benefit from a guaranteed interest rate. The rate for a five-year fix is currently 3.9% a year through Zopa or 4.6% for one-year.

Wide range of options - Virgin Money

Company Overall Rating Minimum Deposit ISA SIPP Visit Site
Virgin Money logoVirgin Money
3.5/5 Stars £1 Yes No

Interest rate: The interest rate offered on Virgin Money's easy-access cash ISA is a competitive 4.5%, which accrues on a daily basis and is paid to you on the last working day of December each year or when you close your account.

Account types: Virgin Money offers a good range of different cash ISA options, offering easy-access, fixed or defined access accounts.

Account features: The account can be opened online through the website or in one of Virgin Money’s stores, and managed online, in the store, or over the phone.

A downside is that you need a current account with Virgin Money to access this ISA. If you don’t have a current account, you can still open a defined access cash ISA. This pays interest of 4.25%, which drops to 2% if you make more than three withdrawals.

FAQs

Can I make withdrawals from a cash ISA?

Yes, you can make withdrawals from a cash ISA any time you like if you have an easy-access cash ISA.

If you have a fixed cash ISA, you can only withdraw money after a specified time or you’ll pay a penalty. Fixed-rate cash ISAs are where you agree to lock your money in an account for typically one, two, or five years in exchange for a guaranteed interest rate across that time.

What is the difference between a cash ISA and a savings account?

The difference is that interest earned in a cash ISA is tax-free. You will not have to worry about income tax.

With an ordinary savings account, you can earn up to £1,000 a year in interest before 20% income tax is due if you are a basic-rate taxpayer. This is known as the Personal Savings Allowance. Higher-rate taxpayers earning more than £50,270 a year can earn up to £500 in interest before income tax of 40% is due on interest above this. Additional rate taxpayers don’t get any Personal Savings Allowance so they will be paying 45% tax on interest earned from savings not held in an ISA.

ISAs should therefore be prioritised if you have a high level of cash savings and could go over the Personal Savings Allowance. You can pay up to £20,000 into ISAs each tax year.

escalator_warningInterested in learning more about ISAs?

Get the full rundown on ISAs by reading my complete guide to ISAs in the UK. Learn how to open a stocks and shares ISA or figure out the best provider for you when ready to open an account.

How many cash ISAs can I have?

You can have as many as you would like. It used to be the case that you could only pay into one cash ISA each tax year, but new rules as of April 2024 mean you can now pay into multiple ISAs of the same type each year.

Can I have two different cash ISAs with different providers?

Yes, you can hold and pay into cash ISAs with different providers. The only limitation is that you can not go over the £20,000 annual ISA allowance overall.

Can you transfer stocks and shares to a cash ISA?

Yes, you can transfer a stocks and shares ISA to a cash ISA if you want to reduce your exposure to the stock market. To keep the money in the ISA wrapper, request a transfer rather than withdrawing money from your account and then paying it into a cash ISA.

To do so, go to the website of the cash ISA provider you want and fill in a transfer form. You can transfer all or only part of your savings. You can also transfer from stocks and shares ISA to a cash ISA with the same provider if they offer both – such as Hargreaves Lansdown. Your investments will have to be sold before the transfer, so the process can take a few weeks.

How much can I put into a cash ISA?

There are no overall limits on how much can be held in cash ISAs. However, there is a cap of £20,000 that can be paid into ISAs each year.

Are cash ISAs tax-free?

Yes, cash ISAs are completely tax-free which is their main appeal. Do be aware that there is always the chance that tax rules may change in the future.

When is the best time to open a cash ISA?

Any time that works for you! Ideally make sure you have maxed out your ISA savings as much as you can before the end of the tax year (5 April) as any unused allowance can’t be carried over to the next tax year.

Cash ISAs are typically for those who may need access to savings within the next few years and who don’t want to risk stock market uncertainty. If you’re saving for the long-term – five years plus – a stocks and shares ISA may be more suitable as there is typically a better chance of growth outpacing inflation.

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Our testing

Why you should trust us

Elizabeth Anderson has been a financial journalist for more than a decade. She’s written for major national newspapers, contributed to corporate reports and research, and reviewed dozens of share dealing platforms, SIPP providers, ISAs, and brokerage firms. Elizabeth started her career at Bloomberg and has worked for the BBC, The Telegraph, The Times and the i newspaper. She is passionate about helping people understand finance and investing. A keen investor herself, Elizabeth invests through general dealing accounts, ISAs and several SIPPs.

Steven Hatzakis is a well-known finance writer with 25+ years of experience in the foreign exchange and financial markets. He is the Global Director of Online Broker Research for Reink Media Group, leading research efforts for ForexBrokers.com since 2016. He has served as a registered commodity futures representative for domestic and internationally-regulated brokerages. Steven holds a Series III license in the US as a Commodity Trading Advisor (CTA).

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About the Editorial Team

Elizabeth Anderson

Elizabeth Anderson, lead writer and researcher, has been a financial journalist for more than a decade. In addition to her work with UK.StockBrokers.com, she has written extensively for major publications including BBC, The Times and Bloomberg. A keen investor herself, she is passionate about helping people understand finance and investing.

Steven Hatzakis

Steven Hatzakis is the Global Director of Online Broker Research for UK.StockBrokers.com and ForexBrokers.com. Steven previously served as an Editor for Finance Magnates, where he authored over 1,000 published articles about the online finance industry. Steven is an active fintech and crypto industry researcher and advises blockchain companies at the board level. Over the past 20 years, Steven has held numerous positions within the international forex markets, from writing to consulting to serving as a registered commodity futures representative.

Jeff Anberg

Jeff Anberg is a Staff Editor at UK.StockBrokers.com. Along with years of experience in media distribution at a global newsroom, Jeff has a versatile knowledge base encompassing the technology and financial markets. He is a long-time active investor and engages in research on emerging markets like cryptocurrency. Jeff holds a Bachelor’s Degree in English Literature with a minor in Philosophy from San Francisco State University.

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