Best Cash ISAs in the UK right now
Hunting for this year’s stand-out Cash ISA? This guide breaks down everything you need to know, from the types of accounts on offer to the features that give your savings the biggest boost.
Key Takeaways
- Tax-Free Savings: You can save up to £20,000 per year in a Cash ISA without paying tax on the interest.
- Top Rates: Current market rates range from 3.8% to 4.33% AER, though many high rates are introductory and drop after 12 months.
Don’t just look at the rates: While some providers offer higher rates, they often limit withdrawals or require minimum balances to maintain those rates. Others have competitive rates that may not be table-topping, but have other benefits which are worthwhile, such as fee-free mortgage advice.
Cash ISAs explained
If you’re saving for your first home, wedding, furnishing your home, expanding your family, or any other big life milestones, a Cash ISA lets you save up to £20,000 a year without paying a penny of tax on your interest.
Types of Cash ISAs include:
- Easy-access Cash ISAs
- Fixed-rate Cash ISAs
- Notice Cash ISAs
- Transfer-in-friendly accounts
What is the best cash ISA in the UK?
When it comes to a competitive interest rate and strong customer service, the Tembo Cash ISA stands out as the best Cash ISA in the UK.
- Variable rate stability: 3.8% AER (variable) that won't change just because customers have been with Tembo for longer than 12 months.
- Unlimited withdrawals.
- No minimum-balance penalty.
- Fee-free mortgage advice included.
The following comparison demonstrates this assessment. The below list is based on UK Cash ISA accounts providing the best product for customers, subject to interest rate. Accurate up to January 2026. Tax treatment depends on your individual circumstances and may be subject to change in the future.
1. Tembo Cash ISA
For savers seeking the best value - the easy access Tembo Cash ISA meets all your needs. Customers benefit from a competitive interest rate of 3.8% AER (variable) paid monthly, meaning customers will earn 2.7x more in interest than if they were to save with the Big Four's easy-access Cash ISA accounts. That rate doesn't change just because customers have been with Tembo for longer than 12 months, their balance falls too low, or they make multiple withdrawals (unlike other providers).
Most importantly, holders of a Tembo Cash ISA also have access to fee-free, award-winning mortgage advice with Tembo*, whether they're looking to buy their first home,remortgage, switch to a better deal, or help a loved one buy.
Save for your future with our competitive, easy-access Cash ISA
Save up to £20,000, tax-free every year with a Tembo Cash ISA, where you'll have access to our competitive interest rate of 3.8% AER (variable), unlimited withdrawals, fee-free mortgage advice, and monthly paid interest. Open with as little as £10 today
2. Trading 212 Cash ISA
If securing the highest interest rate for an initial period is your priority, take a look at Trading 212. Their Cash ISA currently pays the top rate of 4.33% AER (variable), however this is only for the first 12 months. You’ll earn 3.6% AER (variable) after that.
3. Plum Cash ISA
This app-based Cash ISA currently pays an interest rate of 4.32% AER (variable), but only for the first 12 months and 2.54% AER (variable) after that. However, there are a few important conditions to consider. If customers transfer in an existing ISA, they won’t have access to the introductory rate.
Your rate will also drop if your balance drops below £100 or you make four or more withdrawals in a year. Therefore, savers who want regular access to their cash without affecting their interest rate may be better suited to a different provider.
4. Moneybox Cash ISA
Moneybox's Cash ISA pays 4.32% AER (variable), but only for new customers. However, this drops to 3.45% AER (variable) after the first 12 months. If account holders make three or more withdrawals within the 12-month period from the date of opening their Cash ISA or their balance falls below £500, they will earn a much lower rate of interest at 0.75% AER (variable).
Be aware that Lifetime ISAs can only be used to purchase your first home (up to a value of £450,000) or fund retirement. Withdrawals from a Lifetime ISA for any purpose other than buying a first home or for retirement will incur a 25% government penalty, meaning you may get back less than you paid in.
5. Charter Savings Bank
Charter Savings Bank’s Cash ISA is worth considering if you want instant access with no minimum balance requirements. it currently offers 4.09% AER (variable), with no limits on withdrawals and only a £1 minimum balance.
What other savings options are there?
Beyond standard Cash ISAs, savers can explore accounts that either boost returns or add flexibility, such as Lifetime ISAs, regular-savers and fixed-rate bonds.
If savers are saving for their first home (or retirement), a Lifetime ISA can be even more rewarding than a typical Cash ISA. Not only will they earn tax-free interest on their savings, they’ll also benefit from a 25% bonus from the government. Savers can place up to £4,000 of their ISA allowance in their LISA each year, meaning account holders could receive a £1,000 government boost each year if they max out their account.
Be aware that Lifetime ISAs can only be used to purchase a first home (up to a value of £450,000) or fund retirement. Withdrawals from a Lifetime ISA for any purpose other than buying a first home or for retirement will incur a 25% government penalty, meaning account holders may receive back less than they paid in.
Save with the market-leading Cash Lifetime ISA
Save up to £4,000 each tax year and get a free 25% bonus on top of your savings, up to £1,000. Plus, with the Tembo Cash Lifetime ISA, you'll earn 3.8% AER (variable) on your savings - that's hundreds more in interest towards your house fund vs saving with the closest competitor!
