Cash ISAs are a type of savings account that benefit from tax relief. Recently, the amount that you can invest tax free per financial year has been changed from £5,940.00 to £15,240. Following these changes, cash ISAs are now known as New ISAs, or NISAs.

Top 4 Cash ISA Accounts

Provider Interest Rate Min/Max Opening Amount Features
Nationwide Building Society
Instant ISA Saver Issue 2
£1/£ no limit
  • Unlimited withdrawals without penalty
More info

ISA Saver Online
£1/£ no limit
  • Account can only be managed online
  • Qualifying account for the Halifax Savers Prize Draw
More info

Post Office
Premier Cash ISA
  • You can make a maximum of 2 withdrawals each tax year
More info

Sainsburys Cash ISA
  • Unlimited withdrawals
  • Account can only be managed Online or by Telephone
More info

How it works

Each person in the UK who is over the age of sixteen has a £15,000.00 NISA allowance. This can all be paid into a cash NISA, or it can be split between a cash NISA and stocks and shares NISA. Once you have paid £15,000.00 into a NISA, you cannot add any more until the next tax year. Any unused allowance does not carry over, so if you invest less than the maximum £15,000.00 in a tax year, you will still only have a £15,000.00 allowance the following year.

Like normal savings accounts, there are easy access and fixed options. If you have an easy access NISA, you can withdraw the money at any time. Fixed rate NISAs tend to pay a higher rate of interest, but the money is locked away for a set term.

You can only open one cash NISA per year, but you can keep old ones opened in previous years with different providers. If you have more than one cash NISA, the £15,000.00 limit will be the combined limit for all NISAs held.


When choosing a NISA, you will need to consider how long you wish to keep the money in the account. If you want to be able to withdraw money at any time, then an easy access NISA would be the best option. However, if you have money that you are prepared to invest over a longer term, you may be better off choosing a fixed term NISA with a higher rate of interest.

Choosing a cash NISA

Before choosing a cash NISA, you should take the time to compare rates between different providers. Different companies pay different rates of interest, and some also offer a bonus. It is worth checking the NISAs offered by your current bank, as some offer higher rates to existing customers.

Ways to get the best deal include:

  • Comparing providers online by using a price comparison site
  • Visiting independent financial sites for tips and advice
  • Looking at bank websites to check what they offer

As with any financial product, it is worth researching the options available before making your decision. The internet makes it easy to compare providers, so you can ensure that you are getting the best deal.