Best Cash ISA Rates in the UK (October 2026): Top Picks Compared

Rates checked: 19 October 2026. We refresh this page every month because savings rates can change daily. Always confirm the rate with the provider before you apply, as the deal you see here may have moved.

What is a cash ISA?

A cash ISA is a savings account where you never pay UK tax on the interest. That is the whole trick. In a normal savings account, basic-rate taxpayers can earn £1,000 of interest a year tax-free (the personal savings allowance) and higher-rate taxpayers £500, but anything above that gets taxed. Inside a cash ISA, every penny of interest is tax-free, year after year, no matter how much you earn.

You can put up to £20,000 into ISAs in the 2026/27 tax year (6 April 2026 to 5 April 2027). Use it or lose it: unused allowance does not roll over. If you are weighing cash against investing instead, our cash ISA vs stocks and shares ISA guide covers that trade-off in full, so this page stays focused on rates.

Best easy-access cash ISA rates (October 2026)

Easy-access cash ISAs let you withdraw whenever you like with no penalty. The headline rates look generous, but nearly all of them include a temporary bonus. The table shows both the headline rate and what you actually earn once the bonus ends.

Sources: MoneySavingExpert (checked 16 October 2026) and MoneyfactsCompare (16 October 2026), for the easy-access table. Rates are variable and can change at any time. The Kent Reliance (4.24%) row was not re-verified on 19 October and is next checked in the monthly refresh.

The bonus trap: notice how Plum’s 4.71% collapses to 2.54% after 12 months. Set a reminder for month 11 and move your money (“ditch and switch”) when the bonus ends, or pick a no-bonus account like Charter’s and stop thinking about it.

Trading 212 or Chip: which cash ISA suits you?

Trading 212 and Chip consistently rank among the best Cash ISA rates UK providers, but they suit different types of savers.

Choose Trading 212 if you:

• Are opening a brand-new Cash ISA
• Want the highest advertised interest rate
• Prefer managing everything through an investment app
• Plan to contribute new money during the current tax year

Choose Chip if you:

• Want to transfer an existing Cash ISA
• Prefer a simple savings platform
• Need an easy transfer process
• Want competitive long-term returns

Although Trading 212 advertises the highest headline rate, Chip may provide better value for people transferring savings built up in previous tax years.

Always check the latest eligibility requirements before making your decision.

Best 1-year fixed cash ISA rates (October 2026)

A 1-year fix suits money you will not need for 12 months, such as next year’s house deposit top-up or a planned big purchase. You lock the rate, and early withdrawals usually cost you 90 to 180 days of interest.

Sources: MoneyfactsCompare (16 October 2026), MoneySavingExpert (16 October 2026).

Best 2-year and 3-year fixed cash ISA rates (October 2026)

Two and three-year fixes currently pay more than one-year fixes, which is unusual and worth grabbing if you are confident you will not need the money. Early exit typically costs 180 days of interest.

Sources: MoneyfactsCompare (16 October 2026), MoneySavingExpert (16 October 2026).

Best 5-year fixed cash ISA rate (October 2026)

Only fix for five years if you are certain you will not need the cash. The reward is the highest guaranteed rate on the market.

Sources: MoneyfactsCompare (16 October 2026), MoneySavingExpert (16 October 2026).

Easy-access vs fixed-rate cash ISA: which is right for you?

What the difference earns you (illustrative): put £10,000 in the top easy-access deal at 4.80% for a year and you would earn about £480 of tax-free interest, but the rate is variable and the bonus ends after 12 months. Lock the same £10,000 in Shawbrook’s 1-year fix at 4.97% and you are guaranteed about £497. Fix £20,000 for five years with Shawbrook at 5.25% and you would have roughly £25,831 at the end, about £5,831 of tax-free interest (assumes interest compounds annually at the fixed rate). These are illustrations, not promises: easy-access rates move, and fixed terms penalise early exit.

Right now the top 1-year fix (4.97%) pays more than the top easy-access headline rate (4.80%), which is the normal pattern: you are paid extra for locking your money away. Easy access still wins if you need the flexibility to withdraw. Want to model your own numbers? Try our savings calculators.

How to choose the best cash ISA

The rate is only the starting point. Run through this checklist before you apply:

• Check the underlying rate, not just the headline. A 4.80% deal that drops to 3.60% after a year is worse over two years than a steady 4.26% with no bonus.
• Check the transfer rules. If you are moving an old ISA, confirm the top rate applies to transfers. Trading 212’s bonus applies to new money and current-tax-year transfers only, so older transferred money earns the underlying 3.60%.
• Ask if it is flexible. A flexible ISA lets you withdraw and replace money in the same tax year without using up more of your £20,000 allowance. Trading 212, Plum and Monument are flexible; Moneybox and Hargreaves Lansdown’s cash ISA are not.
• Stay inside the FSCS limit. The Financial Services Compensation Scheme protects the first £120,000 per UK-regulated institution (not per account). Keep balances under that per banking group.
• Match the account to how you manage money. Several top deals (Trading 212, Plum, Moneybox, Zopa, Tandem) are app-only. If you want a branch, look at building societies like Kent Reliance or Skipton instead.
• Compare against your debts. Earning 5% in an ISA while paying 24.9% APR on a credit card balance is a losing trade. See our APR explained guide to compare properly, and check your credit score for free if you are tidying up your finances at the same time.

One more thing worth knowing: with inflation (CPI) at 3.1% in August 2026, every rate in our tables beats inflation, so your money is growing in real terms for now. Bank Rate decisions move savings rates up and down, so keep an eye on our UK financial news hub for what the Bank of England does next.

Can you transfer a cash ISA to a better rate?

Yes, and you should check your old ISAs now because many pay far less than the best buys. But there is one golden rule: never withdraw the money yourself. Withdrawing kills the tax-free status. Instead, open the new ISA and fill in its ISA transfer form; the new provider moves the money for you and it stays tax-free throughout.

• You can transfer ISAs from previous tax years without touching this year’s £20,000 allowance.
• You can consolidate several old ISAs into one new account, and since April 2024 you can do partial transfers of current-year subscriptions too.
• You can now open and pay into multiple cash ISAs in the same tax year, even two easy-access ones with different providers.
• Banks work to a guideline of 15 working days for a transfer. If yours drags on much longer, complain: delays can cost you interest.
• Watch for exit penalties on fixed ISAs if you leave during the term; work out whether the better rate still wins after the penalty.

Cash ISA allowance 2026/27: use it before the April 2027 cut

The ISA allowance for 2026/27 is £20,000, and it covers all your ISAs combined. What you do not use by 5 April 2027 is gone forever.

Here is why this year matters more than most: from April 2027, the cash ISA allowance is set to fall to £12,000 a year for savers under 65 (over-65s keep the full £20,000). That makes 2026/27 the last tax year most adults can shelter the full £20,000 in cash ISAs. If you have the spare cash, filling this year’s allowance before the deadline is the single most valuable ISA move you can make. The government is still finalising details, so check the rules on GOV.UK again before April 2027.

A related decision: if your mortgage deal is ending, compare overpaying the mortgage against saving in an ISA at 5%. Our remortgaging guide walks through the maths.

What are the early withdrawal penalties on a fixed cash ISA?

One of the biggest mistakes savers make is choosing a fixed-rate Cash ISA without understanding the withdrawal rules.

Most providers charge an interest penalty if you close your account before the fixed term ends.

Common penalties include:

• 60 days’ interest for many one-year products
• 90 days’ interest with some high-street banks
• 180 days’ interest for longer-term fixed ISAs
• Up to 365 days’ interest on selected five-year accounts

Before locking your money away, ask yourself whether you’ll need access during the fixed period.

If there’s any uncertainty, an easy-access or notice Cash ISA may be a better choice.

Common cash ISA mistakes to avoid

Choosing the wrong Cash ISA could reduce the amount of interest you earn over time.

Here are some of the most common mistakes savers make.

Chasing the Highest Headline Rate

The highest advertised AER isn’t always the best deal.

Some accounts include temporary bonuses or restrictions that reduce their long-term value.

Forgetting About Bonus Periods

Promotional rates often expire after 12 months.

Set a reminder to review your account before the bonus ends.

Ignoring Transfer Conditions

Not every provider offers the same rate for transferred ISAs.

Always read the terms before moving your savings.

Locking Money Away Too Soon

Fixed-rate Cash ISAs usually charge penalties for early withdrawals.

Only choose one if you’re confident you won’t need access to your money.

Leaving an Old ISA Unchecked

Many savers keep the same Cash ISA for years without reviewing the interest rate.

Checking your account annually could help you earn significantly more tax-free interest.

How to get the most from your cash ISA

Getting the most from your Cash ISA isn’t just about choosing the highest interest rate.

These practical tips can help maximise your savings.

• Compare Cash ISA rates at least once a year.
• Review your account before any promotional rate expires.
• Use ISA transfers instead of withdrawing your savings.
• Check whether your provider accepts transfers from previous tax years.
• Consider fixed-rate accounts if you don’t need immediate access.
• Keep an eye on changes to Bank of England interest rates, as they often influence savings rates.
• Spread large balances carefully if you exceed the protection limits offered by a single authorised institution.

Making small adjustments over time can have a significant impact on the amount of tax-free interest you earn.

See also: Money Weather: today’s rates, energy prices and deadlines, refreshed every weekday evening.

Cash ISA rates: FAQs

What is the best cash ISA rate in the UK right now?

As of 19 October 2026, the highest easy-access rate is 4.80% AER variable from Trading 212 (includes a 12-month bonus), and the highest fixed rate is 5.30% AER from Leek Building Society on a 5-year fix. The best 1-year fix is 4.97% from Shawbrook Bank.

Is 5% a good rate for a cash ISA?

Yes. With inflation at 3.1% (August 2026), a 5% tax-free rate grows your money in real terms by roughly 1.9% a year before compounding. It is also far above what most high-street banks pay on easy-access cash ISAs, so if your current ISA pays much less than 4%, you are leaving money on the table.

Can I open more than one cash ISA in the same tax year?

Yes. Since the rule changes in April 2024 you can open and pay into multiple cash ISAs in one tax year, even two easy-access ones with different providers. The total you pay in across all ISAs must stay within your £20,000 allowance.

Can I transfer my ISA without losing the tax-free status?

Yes, as long as you use the official transfer process. Open the new ISA, complete its transfer form, and let the new provider move the money. Never withdraw it yourself first, or the money loses its ISA wrapper and counts against your allowance if you pay it back in.

What is a flexible cash ISA?

A flexible ISA lets you withdraw money and put it back in the same tax year without it counting twice against your £20,000 allowance. Example: with £10,000 in a flexible ISA, you could withdraw £2,000 for an emergency and replace it later, and you would still have your full allowance intact. In a non-flexible ISA, that £2,000 replacement would use up allowance.

Is my money safe in a cash ISA?

Cash ISAs from UK-regulated banks and building societies are covered by the Financial Services Compensation Scheme, which protects the first £120,000 per institution if it fails. Spread larger balances across different banking groups to stay covered. (Some app-based ISAs hold your money via partner banks; the £120,000 protection still applies per institution.)

What happens when my fixed-rate ISA ends?

When the term matures, the provider usually moves your money into a lower-paying easy-access “maturity” ISA. Do not leave it there. Treat the maturity date like a renewal date: compare the best buys and either fix again or transfer to a better easy-access deal.

Do I pay tax on cash ISA interest?

No. Interest inside a cash ISA is completely free of UK income tax, and it does not use up any of your personal savings allowance. That is the main reason ISAs beat normal savings accounts for higher-rate taxpayers and anyone with larger balances.

What is the cash ISA allowance for 2026/27?

The cash ISA allowance for 2026/27 is £20,000, and it is shared across all the ISAs you pay into during the tax year. It is not £20,000 per account. Transfers in from previous tax years do not use up this year’s allowance.

Our sources and monthly update promise

The easy-access rates on this page were re-checked on 19 October 2026 against MoneySavingExpert (checked 16 October 2026) and MoneyfactsCompare (16 October 2026). The fixed-rate tables were last checked on 19 October 2026 against MoneySavingExpert and MoneyfactsCompare (both 16 October 2026). Rates move frequently and providers can withdraw deals without notice, so treat this page as a starting point and confirm the rate on the provider’s own site before applying.

Our promise: we update this page at the start of every month with the latest best-buy rates. If a rate looks out of date, it is because the provider moved it after our last check. This is our page and we want to grow it, so keeping it accurate is the job.

Not financial advice. Savings rates are correct at the time of checking but can change. Always read the provider’s terms before opening an account. If you would rather keep spare cash outside an ISA wrapper, compare the best savings accounts too.