Best Cash ISAs in the UK right now

The low-down on Cash ISAs

If you’re saving for your first home, wedding, a DFS sofa, expanding your family, or any other big life milestones, a Cash ISA lets you save up to £20,000 a year without paying a penny of tax on your interest. Different providers of Cash ISAs will vary on the T&Cs associated with this tax-free savings account, from the interest rate they pay on your savings, to how many times you can withdraw from your savings in a given year, to extra products you can benefit from when saving with them.

What is the best Cash ISA in the UK?

When it comes to a competitive interest rate with no drop-off and amazing customer service, we believe that the Tembo Cash ISA is the best Cash ISA in the UK. Not only do customers benefit from a competitive interest rate of 4.80% AER (variable), but that rate won't change after 12 months, you make multiple withdrawals or your balance falls too low (unlike other providers). Plus, as an award-winning mortgage and savings platform, customers also get fee-free access to the Tembo mortgage service.

Don't believe us? Let’s take a look at the top Cash ISAs available right now in the UK.

The below list is based on UK Cash ISA accounts providing the best product for customers, subject to interest rate. Accurate up to January 2025. Tax treatment depends on your individual circumstances and may be subject to change in the future.

1. Tembo Cash ISA

If you're looking for the best bang for your buck - the app-based Tembo Cash ISA ticks all boxes. Not only do customers benefit from a competitive interest rate of 4.80% AER (variable) paid monthly, meaning you'll earn 2.9x more in interest than if you were to save with one of the Big Four’s easy-access, instant Cash ISA accounts. But that rates doesn't change after the first 12-months, or if you balance falls too low or you make multiple withdrawals (unlike other providers).

Plus, you'll also benefit from unlimited, same-day withdrawals*.

Most importantly, holders of a Tembo Cash ISA will also have access to fee-free, award-winning mortgage advice with Tembo - whether you're looking to buy their first home, remortgage or switch to a better deal, or help a loved one buy.

*Withdrawals made before 2pm will be processed that working day, otherwise next working day.

2. Plum

If just getting the best interest rate for a short-period is your top priority, take a look at Plum. This app-based Cash ISA currently pays the top rate of 4.94% AER (variable) for the first 12 months and 3.79% AER (variable) after that. If you save £1,000 in your Plum Cash ISA and you’re eligible for the bonus rate of 4.93%, after one year you’ll have earned £49.30 in interest, giving you a total of £1,049!

There are a few caveats, though. If you transfer in an existing ISA, you won’t have access to the introductory rate. You’ll earn 3.79% AER (variable) instead. It’s quick and easy to withdraw from your Plum Cash ISA (withdrawals are paid within 1 working day), but you’ll earn just 2.50% AER (variable) if your balance drops below £100 or you make four withdrawals in a year. So if you want regular access to your cash without affecting your interest rate, you may be better suited to a different provider.

3. Chip

Looking for an instant Cash ISA with a generous interest rate and no minimum balance requirements? Chip’s Cash ISA currently offers 4.58% AER (variable) interest and gives you full flexibility over your savings. There are no limits on the number of withdrawals you can make, and as a flexible cash ISA you can also take out money and put it back into the account withing affecting your annual £20,000 ISA allowance.

4. Zopa

Zopa’s Smart ISA lets you split your allowance across multiple pots all within the same Cash ISA and app. This can make it easier to save for different life events and make the most of their competitive interest rate. You can keep some or all of your money in an Access ISA pot. You’ll earn 4.55% AER (variable) for 1 year from the date you open an account, after which your rate will drop to 4.05% AER (variable). You can withdraw money if and when you need it  - and put it back as many times as you like in the same tax year, without affecting your ISA allowance.

If you’re happy to lock your money away for between 1-5 years, keep some or all of your allowance in fixed-term pots. You’ll have 30 days from when you open a new Fixed-Term ISA pot to add money into it, after that you won’t be able to add any more money in.

You’ll earn 4.40% AER (fixed) for one year, 4.16% AER (fixed) for two years, 4.10% AER (fixed) for three years, 4.01% AER (fixed) for four years, and 3.90% AER (fixed) for five years.

5. Cynergy

If you want a good interest rate and easy access to your money at any time, Cynergy’s Online ISA could be the answer. It currently offers 4.50% AER (variable) and the interest is paid annually. Unlike some of the other providers, you can make unlimited withdrawals without giving notice or paying any penalties or fees. 

With a £1,000 deposit, you could earn £48 in the first year, assuming no further deposits or withdrawals are made and there is no change to the interest rate.

Keep in mind that any money you withdraw from this account can’t be replaced.

Work out how much you could save each month with our Take Home Pay Calculator.

If you’re saving for your first home (or retirement) a Lifetime ISA can be even more rewarding than your typical Cash ISA. Not only will you earn tax-free interest on your savings, you’ll also benefit from a 25% bonus from the government. You can place up to £4,000 of your ISA allowance in your LISA each year, meaning you could get a £1,000 government boost each year that you max out your account.