Home Money Best cash Isa rates 2024: Our pick of the five top deals

Best cash Isa rates 2024: Our pick of the five top deals

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Best cash Isa rates 2024: Our pick of the five top deals

The products presented in this article are independently selected by This is Money’s specialized journalists. If you open an account using links that have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence.

This is Money picks our five favorite cash Isas for savers in 2024 – essential reading to help you choose the best savings account for your money.

This Isa roundup keeps our readers up to date with the best savings deals since 2014, and is kept up to date all year round – bookmark it for the latest news.

How an Isa works and why you should have one

Every year in April, savers receive a new Isa allowance that qualifies for tax-free interest.

For the 2023/24 financial year, which begins on 6 April 2023 and ends on 5 April 2024, the limit is £20,000.

Piggy five: we’ve rounded up the best tax-free deals, and there are few options at the moment

You can transfer Isa money any way you want between an investment account and a savings account, whereas previously you could only transfer it from savings to investment.

Cash Isa rates have been rising, along with non-tax-free rates. It is worth opening one to protect the treasury’s money, especially when rates rise.

Isa rules state that you can only contribute to one Isa per tax year.

You can also transfer an old Isa to get better returns. Here is a quick guide to saving with Isa.

It is possible to change your current year cash Isa if you move the entire amount, but it is much easier to get your choice right in the first place.

Rates are rising, which means there’s a chance of a tax bill.

The Isa cash savings market has seen considerable improvement over the past year thanks to the Bank of England’s rate rises.

Best Buy’s easy access rates on a tax-free account pay more than 5 percent. It also comes at a time when inflation remains high, leaving all savers with a serious headache.

Many will wonder why bother? Especially considering that rates on non-tax-free accounts are typically higher.

However, when inflation is raging, it becomes even more important to make sure you get everything you can from your savings.

An Isa is worth having, despite the tax-free savings interest allowance of £1,000 a year for basic rate taxpayers and £500 for higher rate taxpayers.

Basically, with rates rising, more people are likely to face a tax bill on their regular savings.

If you are a basic rate taxpayer earning 5 per cent interest, having more than £20,000 in savings will put you over your PSA, and for a higher rate taxpayer that figure is £10,000.

Money sheltered in an Isa will generate tax-free income, even above that £1,000 level, and if you’re building up a long-term fund, you may one day feel very grateful for it.

And who knows if the personal savings allowance will be around forever – it’s much more likely to disappear than the Isa wrapper.

You may also want to check out the stocks and shares version of an Isa: how to choose the best (and cheapest) DIY investment Isa.

HOW WE CHOOSE OUR FIVE FAVORITE ISAS

Our roundup of five favorite Isas is an ongoing feature of This is Money.

It comes complete with an explanation detailing why we are happy to choose each account.

This page will be kept updated as new offers appear or old ones are removed.

Our team works tirelessly to stay up to date with the latest rate changes, but banks and building societies can close deals without telling us.

If you find an offer here that is no longer available, please email us at editor@thisismoney.co.uk

Remember that you can open an Isa or transfer (as long as you are not tied to a fixed term) at any time of the year.

Please note that we don’t just copy the best rates from the savings tables, we search the market for complete winners.

This is a sample of the best offers. To get the best rates, visit our savings rate tableswhich are complete and compiled independently.

Our five favorite Isas:

Zopa Bank, easy access, 5.08% (All the details)

– Facts: £1 to open

– Transfers in: No

– This is Money says: This account can only be opened through the Zopa Bank app. If you’re looking for an easy-to-access Isa that allows transfers and is flexible, it’s the best deal. Flexible Isas allow you to withdraw money and then replace it in the same tax year, meaning you can make your cash Isa a real easy-to-access, tax-beating fund. All cash deposited is fully protected by the FSCS, as are all accounts on this list.

OakNorth Bank, one-year fix, 5.00% (All the details)

– Facts: £1 to open

– Transfers in: Yeah

– This is Money says: This account can only be opened online, on the OakNorth Bank website. Allows transfers and pays more than Best Buy’s current two-year solution.

Zopa Bank, two-year fixation, 4.62% (All the details)

– Facts: £1 to open

– Transfers in: Yeah

– This is Money says: Savers can only apply for this two-year solution, which pays less than the premium one-year deal, online on Zopa’s website.

Easy access piggy bank, 5.09% (All the details)

– Facts: £500 to open

– Transfers in: Yeah

– This is Money says: This account now has the best overall cash Isa rate, but requires an app to open. It allows three withdrawals per year and includes a 0.94 percent bonus..

Piggy Bank, Lifetime Cash Isa, 4.25% (All the details)

– Facts: £1 to open

– Transfers in: Yeah

– This is Money says: For those aged 18-39 who are saving to buy their first home or to retire, this is the highest paying Lisa cash offer on the market. Save up to £4,000 each tax year and get a 25 per cent government bonus. The offer is only available through their app. This offer is available through the Moneybox app. The rate includes a flat 0.75 percent bonus for the first year.

What you need to know about Isas

Listen to our special Isa podcast – we cover the basics and have advice for those who are experienced Isa savers or investors.

We also look at why investing is the best way to earn inflation-beating returns over the long term, how savers can earn valuable extra interest from accounts and why it’s worth having an Isa.

Press play to listen to the show above, or listen (and subscribe if you like the podcast) on Apple Podcasts, A cast and audio boom or visit our This is the Money Podcast page.

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