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

Our assistant 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.

Piggy five: We round-up the best tax-free deals – and it is slim pickings at the moment

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 still pays less than 1 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 0.75 per cent in recent 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.

HOW WE PICK OUR FAVOURITE FIVE ISAS

Our five favourite Isas round-up is a permanent feature of This is Money.

It comes complete with an explanation detailing why we’re happy to pick each account.

This page will be kept updated as and when new deals pop up or old ones get scrapped.

Our team work tirelessly to stay on top of the latest rate changes, but banks and building societies can pull deals without telling us. 

If you spot a deal here that is not longer available please email us at editor@thisismoney.co.uk

Remember, you can open an Isa or transfer (provided you’re not tied to a fixed-term) at any time during the year.

Note that we don’t just copy the best rates from the savings tables – we scour the market for all-around winners. 

This is a taster of the top deals. For the best rates, visit our savings rates tables, which are comprehensive and independently compiled.

Our five favourite Isas:   

Marcus Bank, easy-access, 1.3% [full details]

– Facts: £1 to open

– Transfers in: No

– This is Money says: Marcus Bank’s easy-access cash Isa rate includes a 0.25 percentage point bonus payable for the first 12 months. It’s also worth noting you can’t transfer your existing cash Isas into this account. It is only available online, although you can subsequently give some instructions over the telephone once open. It is covered by the Financial Services Compensation Scheme. It’s also worth knowing you can earn 0.05 percentage points more by opting for Paragon Bank’s Triple Access deal paying 1.35 per cent. However, if you make more than three withdrawals in a year Paragon cut your rate to 0.25 per cent so it won’t give you as much freedom as the Marcus deal.

Virgin Money, one-year fix, 2.06% [full details]

– Facts: £1 to open

– Transfers in: Yes

– This is Money says: Virgin Money has some great savings deals on offer at the moment. Its one year best buy can only be opened online. Deposits are protected by the Financial Services Compensation Scheme up to £85,000 per individual. The next best deal deal is very close behind, offered by Secure Trust Bank paying 2,05 per cent.

Virgin Money, two-year fix, 2.36% [full details]

– Facts: £1 to open

– Transfers in: Yes

– This is Money says: This account can only be opened online. Deposits are protected by the Financial Services Compensation Scheme up to £85,000 per individual. The next best deal deal is offered by Secure Trust Bank paying 2.35 per cent.

Secure Trust Bank, three-year fix, 2.5% [full details]

– Facts: £1,000 to open

– Transfers in: Yes

– This is Money says: Secure Trust Bank was founded in England in 1952. It claims to have over 1.5 million customers and £2.1 billion in customer savings. Deposits are protected by the Financial Services Compensation Scheme up to £85,000 per individual. This best buy three-year deal can only be opened online. The next best deal is offered by Shawbrook Bank paying 2.38 per cent.

Secure Trust Bank, five-year fix, 2.6% [full details]

– Facts: £1,000 to open

– Transfers in: Yes 

– This is Money says: Secure Trust Bank was founded in England in 1952. It claims to have over 1.5 million customers and £2.1 billion in customer savings. This five-year deal can only be opened online. If you’re prepared to lock your cash away until 2027 then this is the best rate on the market. The next best deal is offered by Shawbrook Bank paying 2.42 per cent.