Best Cash ISA Rates UK 2026: Top Easy Access and Fixed Rate Picks
Published 29th April 2026·Updated 27 April 2026
Reviewed by: Reviewed for accuracy April 2026
A cash ISA lets you save up to £20,000 per tax year and earn interest completely free of income tax. The best easy-access cash ISA rates in the UK are currently available from app-based providers including Trading 212, Chip, and Plum, which have consistently offered rates above 4 per cent AER. Fixed-rate cash ISAs from Shawbrook, Paragon, and Close Brothers offer higher rates if you can lock money away for one to five years.
Short Summary
Cash ISA interest is completely tax-free, regardless of how much you earn. This makes them particularly valuable for higher-rate taxpayers who would otherwise pay 40 per cent tax on savings interest earned outside an ISA.
The annual ISA allowance is £20,000 per person per tax year. This resets on 6 April each year and cannot be carried forward if unused.
Easy-access cash ISAs let you withdraw at any time without losing interest. Fixed-rate ISAs pay higher rates but lock your money away for a set period (typically one to five years) and usually charge a penalty for early withdrawal.
Rates change frequently, particularly as the Bank of England base rate moves. Always verify the current rate directly with the provider before opening an account.
Best Easy-Access Cash ISA Rates (April 2026)
Easy-access cash ISAs pay variable rates that can change at any time, but currently the top rates from newer digital providers are running above 4 per cent AER. High-street banks (Barclays, HSBC, NatWest) typically pay significantly less and are worth avoiding for cash ISA savings.
| Provider | Rate (AER) | Min Deposit | Notes |
|---|---|---|---|
| Trading 212 | Check current rate | £1 | Consistently among the highest; app-based |
| Chip | Check current rate | £1 | Flexible ISA; rate varies with BoE base rate |
| Plum | Check current rate | £1 | App-based; good for automatic saving |
| Moneybox | Check current rate | £1 | Popular app; easy to use |
| Cynergy Bank | Check current rate | £500 | Traditional online bank; competitive rates |
Important: ISA rates change frequently. The figures above represent provider categories rather than specific rates, which will have moved since publication. Always check the current rate directly with each provider before opening an account. Comparison sites including MoneySavingExpert's savings comparison and MoneySuperMarket show real-time rates.
Best Fixed-Rate Cash ISA Rates (April 2026)
Fixed-rate ISAs pay a guaranteed rate for a set term. They are suitable for money you are confident you will not need for the duration. Early withdrawal is usually possible but typically triggers an interest penalty (commonly 60 to 180 days' interest).
| Provider | Term | Notes |
|---|---|---|
| Shawbrook Bank | 1, 2, 3, 5 year | Consistently competitive fixed rates; online bank |
| Paragon Bank | 1, 2, 3 year | Solid fixed-rate ISA range; online bank |
| Close Brothers Savings | 1, 2, 3, 5 year | Competitive; FCA-regulated; FSCS-protected |
| Aldermore | 1, 2, 3 year | Well-regarded challenger bank; good fixed rates |
| Virgin Money | 1, 2 year | More accessible than pure challenger banks |
Fixed rates are typically 0.2 to 0.5 percentage points higher than the best easy-access rates for equivalent terms. For money you genuinely will not need for 12 or more months, locking in a fixed rate protects you against rate cuts.
Cash ISA vs Regular Savings Account: Which Is Better?
For basic-rate taxpayers with modest savings, the personal savings allowance (£1,000 per year tax-free interest for basic-rate taxpayers; £500 for higher-rate taxpayers) means a regular savings account can match or beat a cash ISA for smaller balances.
| Scenario | Better Option |
|---|---|
| Basic-rate taxpayer, savings under £20,000 | Depends on rates; compare both |
| Higher-rate taxpayer (40%) | Cash ISA almost always wins |
| Additional-rate taxpayer (45%) | Cash ISA wins; no personal savings allowance |
| Large balance (£50,000+) | Cash ISA protects all interest from tax |
| Short-term goal (under 12 months) | Regular easy-access account may have higher rates |
The main advantage of a cash ISA is that the tax benefit compounds over time. Money saved in an ISA stays sheltered from tax permanently, even if the balance grows well above the annual allowance. A regular savings account offers no such protection for future years.
How the ISA Allowance Works
Each person has an annual ISA allowance of £20,000. This can be split across different ISA types in the same tax year:
- Cash ISA
- Stocks and shares ISA
- Innovative finance ISA
- Lifetime ISA (maximum £4,000 per year, counts towards your £20,000)
You cannot pay more than £20,000 in total across all ISA types in a single tax year. The allowance resets on 6 April every year and cannot be carried forward.
You can transfer an old ISA from one provider to another without losing the tax-free status. To do this, use the new provider's ISA transfer form rather than withdrawing and redepositing, which would use up new allowance.
Flexible ISAs: An Important Distinction
Some cash ISAs are designated as "flexible". A flexible ISA lets you withdraw money and replace it in the same tax year without the replacement counting as a new contribution.
For example: you have £10,000 in a flexible ISA, withdraw £5,000 in August, then put £5,000 back in December. The £5,000 replacement does not count against your £20,000 annual allowance because it was a replacement, not a new deposit.
With a non-flexible ISA, that same replacement would use up £5,000 of your annual allowance. If flexibility matters to you (for example, you might need temporary access to the money), check whether the ISA you are considering is designated as flexible before opening it.
Frequently Asked Questions
What is the best cash ISA rate in the UK right now?
Rates change frequently and the best current rate will have moved since this guide was last updated. As a starting point, Trading 212, Chip, and Plum have consistently offered some of the most competitive easy-access cash ISA rates. For the most accurate comparison, use MoneySavingExpert's savings section or MoneySuperMarket to see live rates.
Is a cash ISA worth it in 2026?
Yes, for most savers. The tax-free benefit is particularly valuable for higher and additional rate taxpayers, who would otherwise pay 40 per cent or 45 per cent tax on savings interest. For basic-rate taxpayers with smaller balances, the personal savings allowance (£1,000 per year) means the benefit is smaller but still present for balances above around £20,000, depending on the rate.
Can I open more than one cash ISA in the same tax year?
Since April 2024, you can open multiple ISAs of the same type in the same tax year, as long as your total contributions across all ISAs do not exceed £20,000. Previously, you were limited to one of each type per year.
What happens if I accidentally overpay my ISA?
Contact your ISA provider as soon as you notice. They will report the overpayment to HMRC. HMRC will typically void the excess contribution; you will not be fined for an honest mistake, but the overpayment loses its ISA status. The sooner you report it, the simpler it is to resolve.
Can I transfer a cash ISA to a different provider?
Yes. You can transfer a cash ISA to another provider at any time without losing the tax-free status, as long as you use the formal ISA transfer process. Contact your new provider and request a transfer; they will handle the paperwork. Do not withdraw the money yourself to redeposit elsewhere, as this will use up new ISA allowance.
Is my money safe in a cash ISA?
Yes, as long as your provider is FSCS-protected. All UK-regulated banks and building societies are covered by the Financial Services Compensation Scheme, which protects deposits up to £85,000 per person per institution. Check that any provider you use is FSCS-protected before opening an account; this includes app-based providers like Trading 212 and Chip.