Best cash Isas 2022: Where to get the best cash Isa rates and deals

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Our deputy editor Lee Boyce picks his five favourite cash Isas for savers in 2022 – essential reading to help you choose a top savings account for your money.

This top Isa round-up has keeping our readers updated on the best savings deals since 2014 – and is kept up-to-date throughout the year – bookmark it for the very latest developments.

How an Isa works and why you should have one

Each year in April, savers are given a fresh Isa allowance that qualifies for tax-free interest. 

For the 2022/23 financial year, starting 6 April 2022, the limit is £20,000.

You can transfer Isa money whichever way you wish between an investment account to savings account, whereas previously you could only shift it from saving to investments. 

Although cash Isas don’t currently offer fantastic rates, it is still worthwhile opening one to shield money away from the taxman.   

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

You can also transfer an old Isa for better returns. Here’s a quick guide to Isa saving.

It is possible to switch your current year’s cash Isa if you move the entire amount, but it is far simpler to get your choice right in the first place.

Rates are low and that makes the best Isa more important

Banks and building societies should be apologising to savers for the slim pickings on offer here. 

The best buy easy-access rate on a tax-free account pays less than 1.5 per cent while no major bank comes close to featuring on the list. 

It also comes at a time as inflation races higher, leaving all savers with a serious headache.

Savings rates really are dire at the moment and unfortunately, institutions are doing little to shelter savers from the assault of the low interest rate environment.

Although the Bank of England has raised the base rate from 0.1 per cent to 1.25 per cent since December months, it hasn’t been passed on quickly to savers – although, there are signs of improvement.  

Many now ask themselves why bother? Especially given that rates on non tax-free accounts are typically higher.

Yet when rates are low it becomes even more important to make sure you are getting as much as you can from your savings. 

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

It’s tough to get that much interest now, but one day rates will rise. 

Money sheltered in an Isa will deliver a tax-free income, even above that £1,000 level and if you are building up a long-term pot, you may one day be very grateful for that.

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

You may also want to look into stocks and shares version of an Isa – how to choose the best (and cheapest) DIY investing Isa.

Our five favourite Isas:   

Newcastle Building Society, easy-access, 1.5% [full details]

– Facts: £1 to open

– Transfers in: Yes 

– This is Money says: It is possible to transfer your money from your current Isa provider. However, you are restricted to three withdrawals a year. If you make more, your rate will drop to 0.75 per cent.  It requires £1 to open and is fully FSCS protected, as are all of the accounts in this list.

Secure Trust Bank, one-year fix, 2.15% [full details]

– Facts: £1,000 to open

– Transfers in: Yes

– This is Money says: This one year best buy can only be opened online. 

Virgin Money, two-year fix, 2.56% [full details]

– Facts: £1 to open

– Transfers in: Yes

– This is Money says: Virgin Money currently offers the best 24 month rate. Leeds Building Society is narrowly behind it offering 2.55 per cent.

Aldermore Bank, three-year fix, 2.75% [full details]*

– Facts: £1,000 to open

– Transfers in: Yes

– This is Money says: Aldermore offers the top three year fix. There isn’t any point saving for longer at present. 

Moneybox, Cash lifetime Isa, 0.85% [full details]

– Facts: £1 to open

– Transfers in: Yes 

– This is Money says: For those aged between 18-39 who are either saving up to buy their first home or towards retirement, this is the best paying cash Lisa deal on the market. Save up to £4,000 each tax year and get a 25 per cent government bonus. The deal is only available through Moneybox app. The rate includes a 0.6 point bonus paid for the first year so you may want to switch after that comes to an end.