Best ISA interest rates

ISA stands for individual savings account.  It is a class of retail investment arrangement available to residents of the United Kingdom.

There are 4 types of Individual Savings Accounts (ISA):

• cash ISA
• stocks and shares ISA
• innovative finance ISA
• Lifetime ISA

You do not pay tax on:

• interest on cash in an ISA
• income or capital gains from investments in an ISA

If you complete a tax return, you do not need to declare any ISA interest, income or capital gains on it.

Currently the yearly ISA allowance is 20.000 £ per year.

The £20,000 can be put into one type of account or split the ISA allowance across some or all of the other types.

Cash ISAs

Who pays the highest cash ISA interest rates.

Banks as well as building societies offer ISA accounts. High street banks usually pay very low ISA interest rates.

Currently instant access ISAs pay as much as 3% interest per year.

Bank ISA Accounts

High Street banks usually pay very low interests on ISA accounts.

The banks that usually pay the highest ISA interest rates include:

Aldermore

Ford Money

RCI Bank

Sainsbury’s Bank plc

Building Societies ISA accounts

Building Societies usually offer higher interest rates than banks.

Coventry Building Society

Ecology Building Society

Yorkshire Building Society

Skipton Building Society

Transferring Money In From Another ISA Account

Check if the ISA you choose allows transfers in. This is particularly important if you have a low paying ISA at another financial institution.