Best cash ISA rates: five top deals worth considering
The best cash ISA rates right now come from a cluster of app-based and online-only providers, with Trading 212, Chip, and Plum consistently leading the field ahead of the high street banks. Whether you’re a sole trader looking to shelter surplus business income or simply want your emergency fund earning more, the right cash ISA can make a meaningful difference to your year-end balance — with no tax owed on the interest.
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Trading 212 Cash ISA: Best overall rate
Trading 212 has carved out a strong position at the top of the easy-access cash ISA market, regularly offering one of the highest rates available to UK savers. The account is fully flexible, meaning you can withdraw money and replace it within the same tax year without losing your ISA allowance — a genuinely useful feature if your cash flow is unpredictable.
The app itself is clean and straightforward. You can open an account in minutes, fund it by bank transfer, and start earning interest from day one. The rate is variable, so it can change, but Trading 212 has kept it competitive over an extended period. Current rates sit around 5% AER, though you should verify the live figure before opening as these shift regularly.
One thing to note: Trading 212 is primarily an investment platform, and the ISA sits alongside its stocks and shares products. The cash ISA is a distinct, separate account — you won’t accidentally end up invested — but it’s worth being aware of the broader context of the platform.
Chip Cash ISA: Best for app experience
Chip’s cash ISA is one of the most polished in the market, built around an app that makes saving feel genuinely easy. The account is easy-access and flexible, and Chip regularly adjusts its rate to stay near the top of the best-buy tables. Rates have been hovering around 4.8–5% AER in recent months, making it a serious contender for the top spot depending on the day you check.
Where Chip earns particular praise is in usability. The app offers round-ups, savings goals, and clear interest tracking, which makes it well suited to anyone who finds traditional banking interfaces frustrating. If you’re self-employed and managing irregular income, the ability to see your interest accruing daily is a small but satisfying detail.
The main limitation is that Chip has historically required a paid subscription plan to access its top rates. At the time of writing, the best rate on the cash ISA is available on the free plan, but it’s worth reading the current terms carefully before signing up, as the plan structure has changed before.
Plum Cash ISA: Best for auto-saving features
Plum sits in similar territory to Chip: a fintech-first app with an easy-access cash ISA and a competitive rate. Where it differentiates itself is through its automatic saving features, which analyse your spending and move small amounts into savings on your behalf. For tradespeople with lumpy income, this kind of automation can quietly build a savings buffer without requiring any active effort.
The cash ISA rate from Plum has been competitive, typically around 4.7–5% AER, and the account is flexible. Interest is paid daily, credited monthly, which is in line with most app-based ISAs. Plum also offers a higher rate on a paid tier, so if you’re willing to subscribe you may be able to squeeze out additional return — though you’d need to weigh the subscription cost against the extra interest earned.
Plum’s broader product suite includes a stocks and shares ISA and general investment accounts, but the cash ISA stands on its own. There is no minimum deposit requirement, which makes it accessible if you’re just starting out or testing the platform before committing larger sums.
Virgin Money Cash ISA: Best from a high street name
If you’d rather keep your ISA with a recognisable bank rather than a fintech app, Virgin Money offers one of the better rates from the traditional provider space. Its easy-access cash ISA has been more competitive than those from Barclays, HSBC, or NatWest, and the brand carries the reassurance of full Financial Services Compensation Scheme (FSCS) protection up to £85,000.
Virgin Money’s rates tend to sit slightly below the fintech leaders — typically in the 4.5–4.75% AER range — but the trade-off is a more familiar banking experience, telephone support, and the ability to open and manage the account both online and in-branch. If you’re not comfortable managing savings entirely through an app, this is a worthwhile compromise.
One consideration: Virgin Money often runs introductory bonus rates that drop after a fixed period, commonly 12 months. Make sure you know what the underlying rate is and whether it’s worth switching when the bonus expires. Setting a calendar reminder when you open the account takes seconds and can save you slipping onto a poor rate.
Marcus by Goldman Sachs: Best for simplicity
Marcus has been a consistent fixture in best-buy ISA tables since its UK launch, built around a single principle: a straightforward online savings account with a good rate and no nonsense. The interface is deliberately minimal. There’s no app complexity, no subscription tiers, and no confusion about which plan you need — you open the account, deposit money, and earn interest.
The Marcus easy-access cash ISA rate has typically sat in the 4.5–4.75% AER range, competitive if not always at the very top of the market. The account is FSCS protected, easy-access, and flexible. Withdrawals are processed quickly, and the web experience works just as well on mobile as on desktop even without a dedicated app.
Marcus is particularly well suited to savers who want reliability over bells and whistles. If you’ve maxed out your ISA allowance (currently £20,000 per tax year) and want somewhere dependable to park the maximum without worrying about rate alerts and platform changes, Marcus delivers that without friction.
| Provider | Rate (AER, approx) | Flexible ISA? | Best for |
|---|---|---|---|
| Trading 212 Top pick | ~5% | Yes | Highest rate, easy-access |
| Chip | ~4.8–5% | Yes | App experience and usability |
| Plum | ~4.7–5% | Yes | Auto-saving features |
| Virgin Money | ~4.5–4.75% | Yes | Traditional bank reassurance |
| Marcus by Goldman Sachs | ~4.5–4.75% | Yes | Simplicity and reliability |
How these accounts compare
Trading 212 and Chip are the natural head-to-head for anyone chasing the highest possible rate. Both sit at or near the top of the easy-access flexible cash ISA market, and the difference between them on any given day may be just a few basis points. If pure rate is your only criterion, check both on the day you’re ready to open and go with whichever is higher.
Plum is the pick if you want the savings to happen automatically without you having to think about it. The slightly lower headline rate is an acceptable trade for the behavioural benefit, particularly if you’ve struggled to build savings consistently in the past. For sole traders and freelancers who find money sitting in a current account and getting spent, Plum’s automation is a practical fix.
Virgin Money and Marcus occupy a similar tier in terms of rate, but serve different preferences. Virgin Money gives you branch access and a phone line; Marcus gives you digital simplicity with the credibility of a Goldman Sachs-backed product. Neither is a wrong choice — they’re catering to different comfort levels with fintech, not meaningfully different financial outcomes.
The flexible ISA feature is worth emphasising across all five. With a flexible ISA, if you deposit £20,000 and then withdraw £5,000, you can put that £5,000 back in the same tax year without it counting as a fresh contribution. Not all cash ISAs are flexible, and for anyone dipping in and out — as many self-employed people do — this matters more than a fraction of a percentage point on the headline rate.
Alternatives worth considering
If none of the five above suits your circumstances exactly, there are a few other names worth a look. Moneybox offers a cash ISA with a competitive easy-access rate and a clean app experience, sitting in similar territory to Chip and Plum. It also offers a Lifetime ISA if you’re buying a first home or saving for retirement, which may be more relevant depending on your goals.
Zopa has featured in best-buy tables with its Smart ISA, which offers tiered rates and a notice account option for those happy to lock money away for 30 or 90 days in exchange for a better return. If you have savings you genuinely won’t need to touch, a notice account can edge the rate up further.
For fixed-rate cash ISAs specifically, providers including Paragon Bank and Aldermore regularly offer attractive one, two, and three-year fixed terms. These won’t appear in an easy-access comparison, but if you have a lump sum you can set aside until a fixed date, a fixed-rate ISA can lock in a better rate than any easy-access equivalent today.
Verdict
For most people, Trading 212 or Chip will be the strongest choice on pure rate grounds. Both offer flexible, easy-access cash ISAs with no fees and genuinely competitive returns. If you prefer a more hands-off experience, Marcus is the most straightforward option from a well-established institution. And if you’re committed to a traditional bank experience, Virgin Money beats the high street average by a meaningful margin.
Whatever you choose, the key discipline is to check the rate periodically — and actually switch if something better is available. A cash ISA that was market-leading 12 months ago may have fallen well behind today. The ISA wrapper transfers easily between providers, so loyalty to a low rate costs you money for no benefit.
Frequently asked questions
Can I transfer a cash ISA from one provider to another?
Yes, and you should do so if your current rate is poor. To transfer without losing your ISA status, ask the new provider to initiate a formal ISA transfer — do not withdraw and redeposit yourself, as that counts as a new subscription and you could lose the tax-free status on previous years’ savings. Most providers listed above accept incoming ISA transfers.
What is a flexible cash ISA and why does it matter?
A flexible ISA lets you withdraw money and replace it within the same tax year without the replacement counting as a new subscription. If your ISA allowance is £20,000 and you deposit then withdraw £5,000, you can put it back in the same tax year without penalty. Non-flexible ISAs don’t allow this, so withdrawals permanently reduce your available allowance for that year.
How much can I put into a cash ISA each tax year?
The annual ISA allowance is currently £20,000 per person. This allowance resets each tax year (on 6 April) and cannot be carried forward. You can split the allowance across different ISA types — cash ISA, stocks and shares ISA, Lifetime ISA — but your total contributions across all ISAs must not exceed £20,000 in a single tax year.
Is my money safe in an app-based cash ISA?
All five providers listed here are authorised by the FCA and covered by FSCS protection, meaning up to £85,000 per person per institution is protected if the provider fails. Chip and Plum hold customer funds with partner banks rather than being banks themselves — it’s worth checking which partner bank holds your money, as the FSCS limit applies to the underlying bank, not the app.
Do I pay tax on cash ISA interest?
No. Interest earned inside a cash ISA is completely exempt from income tax, regardless of how much you earn. This is the core advantage over an ordinary savings account, where interest counts as income and can push basic-rate taxpayers over the Personal Savings Allowance (currently £1,000 for basic-rate taxpayers, £500 for higher-rate).
All five providers listed here offer genuinely strong rates compared to the high street average, and switching from a bank’s default savings account to any of them is likely to make a noticeable difference to what your money earns over a year.
DashLink is not authorised or regulated by the Financial Conduct Authority. This article is for general information only and does not constitute financial, investment or tax advice, or a personal recommendation. Tax treatment depends on your individual circumstances and rules can change. If you are unsure whether a product or course of action is right for you, speak to a regulated independent financial adviser.
