What are the current Halifax Cash ISA rates?

If you’re on the hunt for the best Cash ISA for your savings, keep in mind that the big high-street banks don’t always offer the most competitive rates - take a look at our guide on the Best Cash ISAs in the UK for more information.

What are the current Halifax ISA rates?

Halifax offers a variety of Cash ISA products, from fixed Cash ISAs to bonus saving accounts which reward fewer withdrawals with higher rates - these range from 1.45% AER to 4.40% AER depending on the account type you choose.

1. Halifax ISA Saver Fixed: Choose between one, two or five year terms, after which the account will change to an Instant ISA Saver. For the one-year term, you’ll get 4.40% AER (or 4.50% if you already have a Halifax Personal Current Account that has been open for at least 40 days.) For a two-year term, you’ll get an interest rate of 4.05% (4.10% for Halifax Personal Current Account holders), and 3.80% for a five-year term. £500 minimum opening balance. You can only withdraw funds by closing the account or transferring to another account.
2. Halifax ISA Reward Bonus Saver: 4.00% AER for one year if you make three or fewer withdrawals into the account. This drops to 1.35% AER if you make four or more withdrawals. £1 minimum opening balance. Unlimited withdrawals. Only available to Halifax Reward Current Account or Ultimate Reward Current Account holders.
3. Halifax ISA Bonus Saver: 3.90% AER for one year if you make 3 or less withdrawals. This drops to 1.35% AER if you make four or more withdrawals from the account. £1 minimum opening balance. Unlimited withdrawals.
4. Halifax Instant ISA Saver Variable: 1.45% AER for balances from £1 up to £9,999. 1.50% AER on balances from £10,000 to £49,999. 1.80% AER on balances of £50,000 or more. Unlimited withdrawals with no restrictions. The account is open for one year, after which it will change to a Halifax Instant ISA saver.
5. Halifax Instant ISA Saver: 1.45% AER for balances from £1 up to £9,999. 1.50% AER on balances from £10,000 to £49,999. 1.80% AER on balances of £50,000 or more. Unlimited withdrawals with no restrictions. There is no end date with this account, but you cannot apply for it directly. Instead, you will be changed over to this account automatically when your other Halifax ISA account comes to the end of its term.

Source: Halifax Cash ISAs. Halifax ISA rates are accurate as of July 2024.

What is Halifax’s best ISA rate?

Halifax’s best Cash ISA rate is currently 4.50% AER (fixed) on its ISA Saver Fixed account with a one-year term. To access this rate, you’ll need to have a Halifax Personal Current Account that has been open for at least 40 days. Without this current account, you’d get a slightly lower rate of 4.40% AER. If you choose a longer term, either two or five years, you will also get lower rates than these.

Is Halifax a good ISA?

Halifax offers a good range of easy access ISA savings accounts as well as one fixed-rate ISA, offering a range of interest rates, withdrawal limits and minimum balance requirements. However, like most high-street banks, Halifax does not offer the most competitive interest rates across a lot of its Cash ISA accounts, some offering as low as 1.45% AER (variable). There are some Halifax ISA accounts that offer better interest rates, but they are only available for between 1-3 years and have withdrawal limits. After this term period, you’ll be automatically moved onto their Instant ISA Saver, which has a much lower interest rate.

Can I have two ISAs with Halifax?

Yes, you can have two ISAs with Halifax, but you can only pay into one Halifax Cash ISA each tax year. However, you can open and contribute to a Cash ISA with another provider. If you’ve already contributed to a Halifax Cash ISA this year but you’ve found a better option elsewhere, you can open a second account or transfer your existing ISA to the new provider. You can also save into a Lifetime ISA or Stocks and Shares ISA with a different provider during the same tax year - just remember that the annual ISA allowance of £20,000 applies across all your ISA accounts, regardless of the number of ISAs you hold.

Take a look at our guide on having more than one ISA to learn more.

Will Halifax increase ISA rates?

Halifax may increase the interest rates on its ISA savings accounts, but it also could lower them - it all depends on what’s going on in the wider market. If interest rates across the market start going down, chances are Halifax will reprice its savings accounts to reflect current rates. If you open a fixed-rate Cash ISA, the interest rate will remain constant throughout the fixed term, even if Halifax changes its advertised rates. After the fixed term ends, you can either open a new Halifax Cash ISA or transfer your savings to another provider. 

If you're saving for a house deposit, you could transfer up to £4,000 of your Cash ISA savings into a Lifetime ISA (LISA). Your LISA savings will be topped up by a 25% bonus from the government and you can use the money within your account to buy a home worth up to £450,000.  

How to find the best Cash ISA Rates

Opening a Cash ISA with your current bank might seem like the easiest option, but this could mean missing out on more competitive rates elsewhere. By comparing a few ISA providers and different types of accounts before making a decision, you can make sure your Cash ISA is right for you!

When comparing providers, you want to look at more than just their interest rates. It’s also worth looking for good customer service. Check their reviews (We’re rated Excellent on Trustpilot!) and how easy it’ll be to access your funds and whether there are any bonus features or benefits. 

A fixed Cash ISA will usually offer the most competitive rates, but you’ll need to lock your money away for a set period of time. If you want to be able to withdraw your money without any penalties, consider an easy-access Cash ISA. A notice account could give you the best of both worlds, but you’ll usually need to give between 30-90 days’ notice to access your cash, depending on the provider and terms. 

How to transfer my Halifax ISA to another provider

To transfer your Halifax ISA to another provider, simply open a new ISA with the new provider and ask them to handle the transfer. Moving the money yourself could have an impact on your savings’ tax-free status and affect your current year’s ISA allowance.

For example, if you’ve saved £32,000 in a Cash ISA over several years and you wish to transfer to a new provider, doing it yourself would use up your entire £20,000 ISA allowance for the year. You’d need to place the remaining £12,000 in a traditional savings account, where any interest you earn would be taxed.

By having your new provider manage the transfer, you can protect your savings’ tax-free status and your ISA allowance for the current tax year.