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

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

Our Savings Picks: These are Money’s top five favorite Isas cash buys – rates are rising and even the big banks are coming back…

The products presented in this article are independently selected by the specialized journalists of This is Money. If you open an account using links that have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence.

Our Associate Editor Lee Boyce Picks His Five Favorite Cash Isas for Savers in 2022 – essential reading to help you choose a better savings account for your money.

This roundup by Isa has kept our readers informed of 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 receive a new Isa allowance which entitles them to tax-free interest.

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

Piggy Five: We’re rounding up the best duty-free deals – and the selections are slim at the moment

You can transfer Isa money as you wish between an investment account and a savings account, whereas before you could only transfer it from savings to investments.

Although cash Isas don’t currently offer fantastic rates, it’s still worth opening one to protect money from the taxman, especially since rates are rising now.

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

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

It’s possible to change your current year’s Cash Isa if you move the entire amount, but it’s much simpler to make your choice in the first place.

Rates are low and that makes the best Isa more important

Although rates may seem low, the cash savings market has seen tremendous improvement over the past year.

The best easy access rate on a tax-free account pays 1.85%. It also comes at a time when inflation is accelerating, leaving all savers with a serious headache.

Many are now wondering why bother? Especially since the rates on non-tax-exempt accounts are generally higher.

Yet when inflation is raging, it becomes even more important to make sure you’re getting the most out of 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 taxpayers at higher rate.

Essentially, with rising rates, more people are likely to face a tax bill on their regular savings.

The money housed in an Isa will provide tax-free income even above that £1,000 level and if you build a long-term pot you could one day be very grateful.

And who knows if the Personal Savings Allowance will be around forever – it’s far more likely to go away than the Isa wrapper.

You might also want to look into the stock and stock version of an Isa – how to choose the best (and cheapest) DIY investment Isa.

HOW WE CHOOSE OUR FIVE FAVORITE ISAs

Our roundup of the five favorite Isas is a permanent feature of This is Money.

It is accompanied by an explanation detailing why we are happy to choose each account.

This page will be updated as new offers appear or old ones are removed.

Our team works hard to keep up to date with the latest rate changes, but banks and building societies can make deals without telling us.

If you spot an offer here that is no longer available, please email us at editor@thisismoney.co.uk

Remember that you can open an Isa or a transfer (provided you are not tied to a fixed-term contract) at any time of the year.

Note that we don’t just copy the best rates from the savings charts – we scour the market to find all-round winners.

This is a taste of the best offers. For the best rates, see our savings rate charts, which are comprehensive and independently compiled.

Our five favorite Isas:

Coventry Building Society, Easy Access, 1.85% [full details]

– Facts: £1 to open

– Transfers in: Yes

– It’s money says: This account allows incoming transfers and is limited to six withdrawals per year. From the seventh withdrawal, you will receive a fee equivalent to 50 days of interest based on the amount you withdraw. It requires £1 to open and is fully FSCS protected, like all the accounts on this list.

– Facts: £500 to open

– Transfers in: Yes

– It’s money says: This year-long best buy can be opened online or by visiting any branch in Santander. The rate is fixed on October 1, 2023. There is a penalty of 120 days of interest if you close the account early.

Santander, two-year fixed, 3.25% [full details]

– Facts: £500 to open

– Transfers in: Yes

– It’s money says: This two-year patch can also be opened online or by visiting any branch. The rate is fixed on October 1, 2024. There is a penalty of 120 days of interest if you close the account early.

Close Brothers Savings, five-year fixed, 3.3% [full details]

– Facts: £10,000 to open

– Transfers in: Yes

– It’s money says: This five-year deal can only be opened online and offers the best overall rate. However, it should be noted that the highest two-year solution mentioned above only offers 0.05 percentage points less interest for fixing for 24 months, instead of 60.

Beehive Money, Isa Lifetime Cash, 1.3% [full details]

– Facts: £1 to open

– Transfers in: Yes

– It’s money says: For people between the ages of 18 and 39 who are saving to buy their first home or for their retirement, this is the highest paying Lisa offer on the market. Save up to £4,000 per tax year and benefit from a 25% government bonus. The offer is only available online or via the app.

What you need to know about Isas

Listen to our special Isa podcast – we cover the basics and have tips for those who are seasoned Isa savers or investors.

We also look at why investing is the best way to earn returns above inflation over the long term, how savers can earn valuable extra interest on accounts, and why an Isa is worth having.

Hit play to listen to the show above, or listen (and subscribe if you like the podcast) on Apple Podcasts, Acast and Audioboom or visit our This is Money Podcast page.

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