Best Cash ISA Rates UK 2026
Every UK adult can shelter £20,000 a year in a Cash ISA, and every penny of interest is tax-free — a huge advantage now that Personal Savings Allowance is frozen. We've ranked the best rates paid by FSCS-protected UK banks and building societies for 2026.
Our top picks
- #1
Top easy-access Cash ISA
Best overall5.10% AERMin: £1Instant accessPros
- No withdrawal restrictions
- Rate includes 12-month bonus
- Fund via debit card or transfer
Cons
- Bonus drops after 12 months — set a diary reminder to switch
Best for: Anyone building an emergency fund who wants tax-free growth without locking money away. - #2
Best 1-year fixed Cash ISA
Best 1-year fix4.85% AERMin: £50012 monthsPros
- Rate guaranteed for a full year
- Accepts transfers from other ISAs
- Interest paid annually or monthly
Cons
- No withdrawals during the term (or lose 90 days interest)
Best for: Savers with a lump sum they won't need for 12 months who want certainty on their return. - #3
Best 2-year fixed Cash ISA
Highest guaranteed4.70% AERMin: £1,00024 monthsPros
- Locks in today's high rates before expected base rate cuts
- FSCS-protected up to £85,000
Cons
- Money is locked for 2 years
- Base rate rises would leave you behind
Best for: Savers who believe UK rates will fall in 2026–27 and want to bank the peak. - #4
Best regular saver ISA
Best for monthly savers6.00% AERMin: £25/month12 monthsPros
- Market-leading headline rate
- Small monthly commitment
- Tax-free within ISA wrapper
Cons
- Capped monthly deposit (usually £250–£500)
- Effective return lower than the AER suggests
Best for: Anyone drip-feeding savings from monthly income rather than depositing a lump sum. - #5
Best Lifetime ISA
Best for first-time buyers4.75% AER + 25% gov bonusMin: £1Until age 60 / house purchasePros
- Government adds 25% (up to £1,000/year free)
- Perfect for first home under £450,000
Cons
- 25% penalty if withdrawn for anything else
- £4,000/year cap
Best for: 18–39 year-olds saving for a first home or a retirement top-up.
How to choose
Easy-access vs fixed — how to choose
Easy-access ISAs let you withdraw any time; fixed ISAs pay a slightly higher rate but lock your money. If you might need the cash within 12 months (car, deposit, wedding), stick with easy-access. If it's genuinely long-term savings, a 1- or 2-year fix protects you against expected UK base rate cuts.
Watch for bonus rates that expire
Many top-of-table easy-access rates include a 12-month bonus of 1–2%. When it drops off, you'll silently earn 3% instead of 5%. Set a calendar reminder to transfer to a fresh ISA on the anniversary — you keep all previous years' allowances.
Always transfer, never withdraw
If you move ISA cash to a new provider yourself, it loses its tax-free status. Ask the new bank to do an ISA-to-ISA transfer — it takes 15 working days and preserves the wrapper on every penny.
Should you use your PSA instead?
Basic-rate taxpayers get £1,000 of tax-free interest a year outside an ISA (£500 for higher-rate; £0 for additional-rate). If you're a basic-rate taxpayer with under ~£20,000 saved at 5%, a normal savings account could pay more. Use our savings calculator to check.
FAQs
- Are ISAs still worth it in 2026?
- Yes — especially for higher and additional-rate taxpayers, and for anyone building savings above £20,000 (where PSA is quickly used up). Rates are also competitive with non-ISA accounts, so there's little reason not to use the wrapper.
- Can I have more than one Cash ISA?
- Yes. Since April 2024 you can pay into multiple Cash ISAs in the same tax year, as long as your total contributions stay within £20,000.
- Is my ISA money safe?
- All the banks and building societies we cover are FSCS-protected up to £85,000 per institution. Spread larger balances across providers.
- What happens to my ISA if I die?
- Your spouse or civil partner inherits an Additional Permitted Subscription equal to your ISA value — so they can keep the tax-free wrapper on your savings.