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.
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:
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.
Authorisation and Regulations
Most UK banks and Building Societies are Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Financial Services Compensation Scheme
The UK regulators, the Financial Conduct Authority (FSCS) and the Prudential Regulation Authority, set the financial compensation limits and compensation rules.
It is important to check if savings are protected by the Financial Services Compensation Scheme, the UK’s deposit guarantee scheme.
At present the guaranteed amount is £85,000.