Best ISA rates in 2025: compare top fixed and variable options
The best ISA rates in 2025 offer tax-free returns up to 4.51% AER for easy access cash ISAs and 4.27% for fixed-rate deals, allowing savers to maximise their £20,000 annual allowance amid stable base rates. With Cash ISA subscriptions rising 14.2% to £37.8 billion in the 2025 tax year, according to official HMRC data, choosing the right option depends on your liquidity needs and risk tolerance. This guide compares top easy access and fixed rate ISAs, including transfers and specialised variants for seniors and children, to help you find the best cash ISA rates.
What are the best easy access cash ISA rates?
Top easy access cash ISA rates stand at 4.51% AER as of September 2025, providing flexibility for withdrawals without penalties—ideal for emergency funds. Providers like those highlighted on Moneyfactscompare lead with variable rates that can change, but they beat high street averages. For over 60s, best easy access ISA rates for over 60s often match general offers, though some building societies add perks like higher minimums for seniors.
Top providers for easy access ISAs
- Plum: 4.51% AER, no minimum deposit, app-based management.
- Shawbrook Bank: 4.46% AER, £1 minimum, online access.
- Best flexible cash ISA rates from Virgin Money: 4.34% AER, allows partial withdrawals.
These best easy access ISA rates prioritise liquidity, but watch for rate drops if the Bank of England cuts base rates. Compared to fixed options, they suit those needing instant access, especially best ISA savings rates instant access for short-term goals.
| Provider | Rate (AER) | Minimum Deposit | Access Type |
|---|---|---|---|
| Plum | 4.51% | £0 | Easy Access |
| Shawbrook Bank | 4.46% | £1 | Easy Access |
| Close Brothers | 4.27% | £10,000 | 1-Year Fixed |
| Nationwide | 4.20% | £1 | 1-Year Fixed |
Tip: Always check for FSCS protection up to £85,000 per provider when selecting the best easy access cash ISA rates for over 60s, ensuring your savings are secure.
Top fixed rate ISAs for 1, 2, and 3 years
The best fixed rates cash ISA lock in returns like 4.27% AER for one year, shielding against rate falls but penalising early withdrawals. For longer terms, best 1 year fixed ISA interest rates top 4.25%, while 2 year ISA best rates reach 4.10% and best 3 year fixed ISA rates hit 3.95%. These suit committed savers, as outlined in guides from MoneySavingExpert.
Pros and cons of fixed-rate bonds
- Guaranteed returns: Best ISA fixed interest rates provide certainty, e.g., best fixed cash ISA rates for 1 year from Shawbrook at 4.27%.
- Higher yields initially: Outperform variable in stable economies, but best two year fixed ISA rates may lag if rates rise.
- Lock-in risks: Penalties up to 180 days’ interest for early access; ideal for funds you won’t need soon.
For extended commitments, best fixed ISA rates for 5 years offer around 3.80%, balancing security with modest growth. Compare via Which? for rated providers.
Best ISA transfer rates and how to switch
Best cash ISA transfer rates can boost earnings by moving to higher yields, like 4.51% easy access, without losing tax-free status—transfers are free if handled correctly. Many providers offer bonuses for best cash ISA rates transfer in, up to 0.20% extra. The process takes 15-30 days; contact your new provider to initiate.
To avoid pitfalls, confirm no exit fees on your current best ISA rates transfer. Official stats from GOV.UK show transfers driving growth in subscriptions.
Steps to transfer your ISA
- Choose a new provider with top best rates for ISA transfers.
- Provide details; they contact your old provider.
- Monitor progress to ensure full amount moves tax-free.
Specialised ISAs: children’s, junior, and senior options
Children’s ISA best rates for juniors top 4.00% AER, with £9,000 allowance, locked until age 18 for long-term growth. For seniors, best cash ISA rates UK over 60s mirror general deals but include best fixed cash ISA rates for over 60s at 4.20%. High street options like best bank ISA rates from NatWest offer 3.75%, per their overview.
Best high street ISA interest rates suit branch access, while online beats them for yields. Junior ISAs via Finder provide best junior ISA interest rates.
ISA rules and allowance for 2025/2026
The £20,000 tax-free ISA allowance covers cash, stocks, and lifetime variants—no changes for 2025/26. All deposits are FSCS-protected up to £85,000. For more on what is an isa, see our guide at what is an isa.
Compare broader savings at best isa rates. For seniors, explore age-targeted deals.
Frequently asked questions
What is the current best easy access ISA rate?
The best easy access cash ISA rates currently stand at 4.51% AER from providers like Plum, offering instant withdrawals and no minimums for flexibility. This rate applies to UK residents over 18, with tax-free interest on balances up to £20,000. It’s ideal for those prioritising liquidity over higher fixed yields, but rates can fluctuate with market changes.
How do I transfer my ISA to get better rates?
To transfer your ISA for best cash ISA transfer rates, select a new provider and authorise the move—they handle the process to keep it tax-free. Expect 15 working days; avoid closing your old account yourself to prevent losing ISA status. This strategy can add hundreds in interest annually, especially switching to best rates for ISA transfers amid competitive offers.
Are there ISAs specifically for over 60s?
While no exclusive ISAs exist for over 60s, best easy access cash ISA rates for over 60s match top general rates at 4.51%, with some seniors-only perks like waived fees from building societies. These provide accessible, tax-free savings protected by FSCS. Experts recommend them for retirement planning, combining liquidity with yields beating inflation.
What are the current fixed ISA rates for 1 year?
Best 1 year fixed ISA interest rates are 4.27% AER, locking in returns for predictable growth on your allowance. Providers require minimums from £500, with penalties for early access suiting patient savers. In a potential rate-cut environment, these outperform variables for short-term commitments.
How much can I save in an ISA in 2025?
The annual ISA allowance is £20,000 for 2025/26, covering all types like cash and stocks without tax on gains. You can split it across providers but not exceed the limit. Unused allowance doesn’t carry over, so maximising it via best ISA rates ensures optimal tax-free growth.
What’s the difference between cash and stocks ISA?
Cash ISAs offer guaranteed interest like 4.51% AER on deposits, low-risk for preservation. Stocks and shares ISAs invest in markets for potential higher returns but with volatility and no guarantees. Beginners favour cash for stability, while experts diversify into stocks for long-term wealth via the same £20,000 allowance.
