With the number of ISA deals at a record high, and interest rates as high as 4.5% AER, savers looking to maximise their returns have an array of competitive options in the last tax year before the cash ISA allowance is slashed.
What is happening to the ISA allowance?
One factor behind the recent surge in competitive savings deals is the upcoming change to the cash ISA allowance. From April 2027, the amount that savers can deposit into cash ISAs tax-free will be cut from £20,000 to £12,000 for those under the age of 65. However, savers aged 65 and over will retain the ability to deposit up to £20,000 into cash ISAs per tax year.
Cash deposits are a major source of funds that providers use to lend in the form of loans and as mortgages. With cash ISA allowances due to be cut, providers are trying to attract as many customers as possible ahead of the change.
Caitlyn Eastell, Personal Finance Analyst at Moneyfacts notes that "savers should be taking advantage of this all-time high, and it may be especially timely as the new tax-year is the perfect window to review their current deal and switch to ensure they can maximise their returns before thresholds tighten."
Average interest rates still lag the best rates
With an unprecedented number of cash ISAs available, providers have been battling to top the best buy charts, pushing average ISA rates higher.
The average easy access ISA rate has increased month-on-month by its biggest margin since October 2023, climbing to 2.73%. But they still significantly lag the best rates available in the market. So it is important to shop around.
For those willing to lock in their money, the average one-year fixed ISA rose to 4.01%, the highest level recorded since May 2025. The average longer-term fixed ISA has also hit a one-year high of 3.98%.
Best Easy Access Cash ISAs in the UK
If you are looking for flexibility alongside a competitive rate, an easy access Cash ISA could be suitable. Below is a roundup of the best easy access Cash ISAs currently available in the UK market. Also, make sure you bookmark our best easy access Cash ISA table which we update every week.
| Provider | Account Name | AER | Bonus Rate | Minimum Opening Balance |
|---|---|---|---|---|
| Trading 212 | Easy Access Cash ISA | 4.51% | 0.91% (12 months) | £1 |
| Principality Building Society | Online Bonus 5 Access Cash ISA | 4.31% | 1.90% (12 months) | £1 |
| Plum* | Cash ISA | 4.30% | n/a | £10 |
| Tembo Money | Cash ISA | 4.25% | n/a | £0 |
| Atom Bank | Easy Access Cash ISA | 4.20% | n/a | £1 |
(Note: Rates correct as of April 2026. Bonus rates generally apply for the first 12 months. Always check the provider's terms and conditions regarding withdrawals and transfers.)
Best Fixed Rate ISAs in the UK
If you do not need immediate access to your cash and wish to protect against potential future rate drops, a fixed rate ISA guarantees your return for a set period. Below is a list of the most competitive fixed rate ISAs currently available. Also, make sure you bookmark our best fixed rate Cash ISA table which we update every week.
| Provider | Account Name | AER | Minimum Opening Balance |
|---|---|---|---|
| Close Brothers | 18 Month Fixed Rate Cash ISA | 4.56% | £20,000 |
| Close Brothers | 3 Year Fixed Rate Cash ISA | 4.53% | £10,000 |
| Close Brothers | 5 Year Fixed Rate Cash ISA | 4.53% | £10,000 |
| Close Brothers | 1 Year Fixed Rate Cash ISA | 4.50% | £500 |
| Aldermore | 2 Year Fixed Rate Cash ISA | 4.40% | £1,000 |
| Close Brothers | 4 Year Fixed Rate Cash ISA | 3.91% | £2,000 |
(Note: Rates correct as of April 2026. Fixed rate ISAs typically restrict withdrawals prior to the end of the term or apply significant interest penalties if funds are accessed early.)
Non-ISA accounts deals also at a record high
Beyond the ISA market, the number of standard savings accounts available has also seen a significant jump, reaching 1,774 deals, the highest number on record. Furthermore, the number of accounts paying above the Bank of England base rate (currently 3.75%) has leapt to its highest level since December 2021. So even if you do not hold your money in an ISA, look at our Best Savings Account roundup to make sure you are getting the most interest possible.
Bear in mind that any interest earned on savings outside of an ISA is liable to income tax if the amount exceeds your annual personal savings allowance.
The risk of rising inflation remains
While savers may feel reassured by the availability of more competitive rates, there is a need for caution. Balancing savings against sharp spikes in household bills and inflation can be tricky, and savers could quickly be left out of pocket if they do not manage their money proactively.
Even as interest rates rise, daily costs can climb simultaneously, leading to the real-term erosion of your savings (meaning the purchasing power of your money diminishes).
This makes it more important than ever to review your current accounts. Regularly searching the market and switching to the most attractive deals is the best way to help protect your money from the threat of inflation.
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