For UK savers looking to protect their earnings from the taxman, Cash ISAs (Individual Savings Accounts) continue to be one of the most reliable and secure ways to grow money. With interest rates shifting, inflation easing, and new offers appearing regularly, the 2025/26 tax year presents a fresh opportunity to choose the best ISA to suit your goals.
This guide explores the top Cash ISAs for 2025/26, comparing the best rates, providers, terms, and features available this tax year. Whether you’re looking for flexibility, fixed returns, or ethical banking options, you’ll find everything you need right here.
Understanding the ISA Allowance for 2025/26
Before diving into the top products, it’s important to know how ISAs work.
- The ISA allowance for the 2025/26 tax year is £20,000, unchanged from the previous year.
- You can divide this allowance across different types of ISAs, including Cash ISAs, Stocks & Shares ISAs, Innovative Finance ISAs, and Lifetime ISAs—but you can only open one of each type per year.
- Interest earned in a Cash ISA is tax-free, no matter how much you earn or how high the interest rate climbs.
Types of Cash ISAs Available in 2025/26
There are several types of Cash ISAs to choose from:
Instant Access Cash ISA
- Withdraw and deposit money anytime.
- Ideal for emergency funds or short-term savings.
- Usually has lower interest rates.
Fixed-Rate Cash ISA
- Lock your money away for a set period (1, 2, 3, or 5 years).
- Higher interest rates, but penalties for early withdrawal.
Regular Saver ISA
- Requires monthly deposits.
- Encourages disciplined saving.
- Attractive rates for consistent savers.
Help to Buy and Lifetime ISAs
- Designed for first-time home buyers or retirement savings.
- Lifetime ISAs offer a government bonus but have specific rules.
Top Instant Access Cash ISAs 2025/26
🏆 Nationwide – Instant ISA Saver
- Rate: 4.60% AER (variable)
- Minimum Deposit: £1
- Flexibility: Unlimited withdrawals
- Notable Features: Easy online access; can be managed via app, phone, or branch
🌟 Shawbrook Bank – Easy Access Cash ISA
- Rate: 4.55% AER (variable)
- Minimum Deposit: £1,000
- Flexibility: Unlimited withdrawals
- Notable Features: Competitive rate, online-only application
✅ Yorkshire Building Society – Internet ISA Plus
- Rate: 4.45% AER (variable)
- Minimum Deposit: £100
- Flexibility: Up to 3 withdrawals per year without penalty
- Notable Features: FSCS protected; hybrid between flexibility and slightly better rate
Top Fixed-Rate Cash ISAs 2025/26
🔒 Virgin Money – 1 Year Fixed Rate Cash ISA
- Rate: 5.10% AER (fixed)
- Minimum Deposit: £1
- Term: 1 year
- Withdrawals: Early closure penalty applies
- Notable Features: Excellent short-term return; low deposit barrier
🛡️ Zopa Bank – 2 Year Fixed ISA
- Rate: 5.25% AER (fixed)
- Minimum Deposit: £1,000
- Term: 2 years
- Withdrawals: Penalty for early withdrawal
- Notable Features: Strong mid-term interest rate for those who can lock funds
💼 Close Brothers – 5 Year Fixed Rate ISA
- Rate: 5.40% AER (fixed)
- Minimum Deposit: £10,000
- Term: 5 years
- Withdrawals: Locked in unless exceptional conditions apply
- Notable Features: Ideal for long-term savers looking for rate stability
Top Regular Saver Cash ISAs 2025/26
📅 Newcastle Building Society – Regular Saver ISA
- Rate: 5.20% AER (variable)
- Monthly Deposit Limit: £500
- Minimum Deposit: £25
- Term: Ongoing
- Withdrawals: Limited to once per year
- Notable Features: Great for building a savings habit with tax-free returns
💳 Principality Building Society – Regular Saver ISA
- Rate: 5.00% AER (variable)
- Monthly Deposit Limit: £250
- Minimum Deposit: £1
- Term: 1 year
- Withdrawals: Not allowed during term
- Notable Features: Good short-term ISA for regular savers
Top Lifetime ISA Providers (Cash Version)
While not technically a standard Cash ISA, the Lifetime ISA (LISA) remains popular for those under 40 saving for a first home or retirement.
🏠 Moneybox – Lifetime ISA
- Rate: 4.25% AER (variable)
- Bonus: 25% government bonus up to £1,000/year
- Age Eligibility: 18–39 (open) / contribute until age 50
- Withdrawals: Only for first home or after age 60, otherwise 25% penalty
🛠️ Newcastle Building Society – Cash Lifetime ISA
- Rate: 4.10% AER (variable)
- Bonus: Same as above
- Features: FSCS protected; ideal for homebuyers wanting a traditional banking experience
Best Ethical and Sharia-Compliant Cash ISAs
🌱 Al Rayan Bank – 1 Year Fixed Sharia ISA
- Expected Profit Rate: 5.00% (Sharia-compliant)
- Minimum Deposit: £1,000
- Term: 1 year
- Withdrawals: Early withdrawal not permitted
- Notable Features: Faith-compliant, competitive rate for ethical savers
🕊️ Gatehouse Bank – Easy Access Cash ISA
- Expected Profit Rate: 4.45%
- Minimum Deposit: £1
- Flexibility: Unlimited withdrawals
- Notable Features: Ethical, interest-free model; FSCS protection applies
How to Choose the Right Cash ISA in 2025/26
When selecting a Cash ISA, consider the following:
Interest Rate vs. Access Needs
- Choose an instant access ISA if you need flexibility.
- Go for a fixed-rate ISA if you can lock away funds for a higher return.
Deposit Requirements
- Some ISAs require as little as £1, while others ask for £10,000 or more.
Online vs. In-Branch Management
- Digital-only providers often offer better rates.
- If you prefer face-to-face service, a building society might suit you.
Ethical and Faith-Based Options
- Look for providers like Al Rayan or Gatehouse if ethical banking is important to you.
FSCS Protection
- Ensure your savings are protected up to £85,000 per person, per institution.
How to Open a Cash ISA
Opening a Cash ISA is straightforward. You’ll typically need:
- Proof of identity (passport, driving licence)
- National Insurance number
- UK bank account
Applications can be completed online, in a branch, or by post depending on the provider.
Transferring Between ISAs
You can transfer your ISA from one provider to another without losing your tax-free status, but you must follow the correct process:
- Contact the new provider, and they will handle the transfer.
- Do not withdraw funds yourself for the purpose of switching—doing so will lose the tax benefits.
Most providers allow partial or full transfers and may even offer bonus rates for transfers-in.
Conclusion
The 2025/26 tax year brings a wealth of Cash ISA opportunities for UK savers of all kinds. Whether you’re after flexibility, fixed returns, or a regular saving habit, there’s a product out there for you. With interest rates currently strong compared to the previous few years, now is a great time to maximize your £20,000 allowance.
