The best cash ISAs February 2023

We've researched the best cash ISA rates on the market

Cash ISA rates making money grow
(Image credit: Getty Images)

You can get different types of ISAs but it all comes down to how long you want to save for. All ISAs allow you to save tax-free just like regular savings accounts

When deciding which cash ISA is best for you, there are three important factors to consider:

  1. How long to save for
  2. The interest rate
  3. Could a best savings account be a better option?

Think about how easily you want to access your money. ISAs vary from easy access which has no penalty fee on withdrawals, and then there's one to three fixed ISAs where your money is locked in, so there will be a penalty fee on withdrawals. The longer the term of your ISA, the better the return. 

Always take into account your financial position as this will help you decide how long you want to lock your money in for. Think about emergency money that you may need to access too.

We have put together the top cash ISAs with the best interest rates. The rates listed have been curated from the latest data provided by Defaqto (opens in new tab).

 Last checked 07.02.2023.  Last updated 07.02.2023. 

Best easy access cash ISA rates

If you think you may need to access your money at any given time within 12 months, then an easy access account is best for you. The rates are lower, but you have more flexibility. This is what’s on offer right now.

Cynergy Bank Cash ISA | 2.85% | Minimum deposit £1, maximum deposit of £20,000
You can open and manage this account online. The 2.85% interest means you earn £28.50 on a £1,000 deposit. The interest rate is variable, so it may change over time. (opens in new tab)
Top easy access

Cynergy Bank Cash ISA | 2.85% | Minimum deposit £1, maximum deposit of £20,000

You can open and manage this account online. The 2.85% interest means you earn £28.50 on a £1,000 deposit. The interest rate is variable, so it may change over time.

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ProviderRate (AER)Min depositUnlimited withdrawalsFlexibleTransfers allowedHow to open
Virgin Money Easy Access Cash ISA Exclusive3%NoneYesYesYesOnline or in branch (Only for Virgin Money current account holders)
Cynergy Bank Online ISA2.85%£1YesNoYes (Only at time of opening account)Online
Newbury Building Society Easy Access ISA2.85%£50Yes (Up to £500 per day)YesYesIn branch or by post
Shawbrook Easy Access ISA2.77%£1,000YesNoYes (Only at time of opening account)Online
Yorkshire Building Society Internet Saver ISA Plus2.75%£1YesYesYesOnline

Best one-year fixed cash ISA rates

These are the current top fixed rate cash ISAs for one year. If you take your money out before the 12-month period, then you will be subject to a penalty.

Some may also require you to have a current account or a large minimum deposit to benefit from the linked cash ISA rate.

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ProviderRate (AER)Min depositTransfers allowedHow to open
Barclays 1 Year Flexible Cash ISA4%£1YesIn branch or by phone. Existing customers can open online.
Secure Trust Bank3.80%£1,000YesOnline
Coventry Building Society 1 Year Fixed ISA3.80%£1YesOnline, in branch, by phone or via post
Virgin Money 1 Year Fixed ISA3.79%£1YesOnline
Shawbrook Bank 1 Year Fixed ISA3.78%£1,000YesOnline

Best two-year fixed cash ISA rates

If you can lock away for a bit longer, you can earn a bit more interest. These are currently the best rates for two year fixes. 

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ProviderRate (AER)Min depositTransfers allowedHow to open
Virgin Money 2 Year Fixed ISA4.11%£1YesOnline
Barclays 2 Year Fixed ISA4.10%£1YesBy phone or app
Castle Trust Bank 2 Year Fixed ISA4.10%£1,000YesOnline

Best three-year fixed cash ISA rates

If you’re saving for something at least three years into the future, then you can get slightly more by fixing your cash ISA for three years. Again, be sure you don’t need the cash sooner to avoid penalty charges. 

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ProviderRate (AER)Min depositTransfers allowedHow to open
UBL 3 Year Fixed ISA4.11%£2,000YesOnline, by post or in branch
Secure Trust Bank 3 Year Fixed ISA4.10%£1,000YesOnline
State Bank of India 3 Year Fixed ISA4.10%£5,000YesIn branch

What is the ISA allowance?

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You can put up to £20,000 (opens in new tab) in a cash ISA for this tax year and anyone over the age of 16 is entitled to open an account (check specific ISA accounts as some are restricted to 18 years). You can move your cash ISA into a stocks and shares ISA at a later stage if you want to potentially get better returns.

It’s a good idea to use as much of your ISA allowance as you can, as the tax year runs from 6 April to 5 April. Therefore any allowance in your ISA that you don’t use is lost each year.

Do I need a cash ISA?

All basic rate taxpayers can earn up to £1,000 interest in savings before it's taxed (higher taxpayers £500). Fewer than one in 20 people get close to the limit - so for most of us there's not much practical cash ISA benefit.

Instead the interest rate is what counts, and cash ISAs typically pay less than normal savings. It’s a good idea to take a look at our best savings accounts before making a decision.

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Vaishali Varu
Staff Writer

Vaishali graduated in journalism from Leeds University. She has gained experience writing local stories around Leeds and Leicester, which includes writing for a university publication and Leicester Mercury. 

She has also done some marketing and copywriting for businesses.

When she is not writing about personal finance, Vaishali likes to travel and she's a foodie.

With contributions from