Best cash ISA – Including details of the leading rates in the UK

Antonia says

Trading 212 already appears on many of our ‘Best of’ lists at Investing Insiders. So we were already fans of their exceptional value and uncomplicated interface for investors. But now they have rolled out one of the highest rates of interest available on any UK cash ISA (4.5% APY), we’re big cheerleaders for their savings options too.

Moneybox does have a higher rate, but you’ll need a minimum of £500 to start a Cash ISA with Moneybox, so this is the leading rate for those with a lower balance.

Trading 212’s Cash ISA is also a If an ISA is flexible, you’re able to withdraw money and pay it back in, without it counting twice within your annual ISA allowance. It must be repaid within the same tax year it’s withdrawn to be eligible, however.flexible ISA, which many on our list are not, and there are no penalties for accessing you cash at any time, as many times as you want, so this is a great option if you feel you might need the cash you’re saving.

Fees

No fees, even to access T212’s investment accounts.

Antonia says

We talk about Moneybox a lot at Investing Insiders as our analysis has shown that they are a great place for beginners to start investing. That being said, the rate on their cash ISA isn’t the best out there and it stands to drop further after 12 months so you may wonder why they made it onto this list.

The reason is, Moneybox is probably my first choice for anyone who is new to investing and would like to try and grow their wealth on the stock market. But not everyone has a starting capital, and that’s where the cash ISA could come in. If you set aside less than 12 months to grow your starting pot and deposit regular amounts into your account (there are good round-up tools etc to help you do this), then you could simply upgrade to a stocks and shares ISA at the end of the year and tap into one of their high performing funds.

Fees

Zero fees associated with the cash ISA
£1 subscription fee and 0.45% platform fee for investing

Antonia says

New customers can get a boosted rate for 180 days that pays 4.89% AER in total. After that (and for existing customers) it’s 4.32%. 4.89% is an exceptionally good rate right now, and makes Chip the second highest paying Cash ISA in our list.

Even without the boost, it’s still a strong rate but it is a tracker rate, which means it tracks at 0.26% below the Bank of England base rate. While this means that if the rate moves up, Chip account holders stand to gain, it also means the rate could go down at any time.

You can access the Chip cash ISA for free; however, a lot of their features come with a fee including autosaves which will cost 45p per save. These are free with Plum so that’s a consideration.

Fees

Zero fees to use the cash ISA but you will pay to use the automated savings tools.

Antonia says

This is a fantastic rate if you’re a new customer and can therefore get the bonus rate. It’ll only last for 12 months however, but shopping around, and regularly switching accounts is a good habit to get into when there’s a rates war going on!

I’ve had an account with Plum since 2021 and can confirm that it is a very convenient, helpful way to save money. If you choose to use the smart features, the algorithm analyses your income and expenditure in order to put aside small amounts that you can afford, and will barely notice.

There are penalties for accessing your cash to watch out for here, and you won’t get the same top rate if you’re transferring in an existing cash ISA, however, so it’s best suited to those who are setting up a first cash ISA and who won’t need to make regular withdrawals.

Fees

Zero to pay for the cash ISA.

Antonia says

One thing to look for with this good rate is that you can’t use this ISA for regular withdrawals: more than three withdrawals within a year and your rate will drop to 1.25% AER.

It’s also not a If an ISA is flexible, you’re able to withdraw money and pay it back in, without it counting twice within your annual ISA allowance. It must be repaid within the same tax year it’s withdrawn to be eligible, however.flexible ISA, so if you were planning on maxing out your annual allowance, and wanted to take withdrawals, you can’t repay that money in or you’ll be over your annual limit.

You can opt to have your interest paid either monthly or annually – the AER rate paid remains the same on both, although the AER stands for Annual Equivalent Rate and shows what the interest rate would be if interest was paid and added to the capital balance each year. It’s slightly less if you opt for it to be paid monthly.

Fees

No fees to use this cash ISA.

Antonia says

Marcus might not be a name you’re familiar with but as a Goldman Sachs brand, you’re getting peace of mind that this is a financial services giant.

Interest is calculated daily and paid monthly, but you won’t be able to transfer in any existing ISAs you have and this top rate only applies to new customers, and only lasts for 12 months. After that (or if you’re an existing customer), the rate is 3.79% AER.

It also isn’t a flexible ISA, which whatever you take out can’t be replaced within your tax-free allowance. You’ll also lose the tax-free benefit on any future interest earned on that withdrawn amount.

Fees

No fees to use this cash ISA.