Cash ISA rates have continued to drift lower after the latest base rate cut on 8th May, but ISAs remain a good option if you’re looking to keep all or some of your savings balances free from tax deductions.
With interest rates on savings accounts at higher levels during the last 18 months or so, more and more people are concerned that they will exceed their annual Personal Savings Allowance (PSA).
While interest rates were at rock bottom it wasn’t an issue for many savers, but now people are once again switching some of their cash to ISAs to reduce their exposure to the tax man.
Currently a basic rate taxpayer can earn £1000 of interest totally tax free per year and for higher rate taxpayers the limit is £500.
The Chancellor is planning to potentially revamp ISA allowances later this year, so make use of the current £20,000 Cash ISA limit while you still can.
If you’re still looking for a home for your tax free savings these are currently a selection of the best buy deals (correct as at 21st May 2025)
Easy Access variable interest rate:
- Vida Savings – Easy Access ISA (1) 4.55%
- Paragon Bank – Double Access Cash ISA – 4.50%
- Kent Reliance – Easy Access Cash ISA 4.46%
1 Year Fixed Rate ISA – no access:
For all the latest personal savings and cash ISA best buy accounts – check here
All the above accounts are covered by the Financial Services Compensation Scheme up to £85,000 per person
can i apply by post
Hi Herbert – which ISA product were you thinking of applying for? – if you let me know I will check to see if postal applications are permitted.
Many thanks
Andrew