Top Cash ISAs for January 2024
However, a cash ISA may be a better choice for people who need cash quickly or who are worried about the instability of the market.
Top Cash ISAs for January 2024: Recently, the rates on the best cash ISAs, such as easy access and notice ISAs, have gone up along with savings accounts. This is because the Bank of England (BoE) has raised interest rates several times and there is more competition in the market.
But the BoE has frozen interest rates at 5.25% for the third time. Some experts think rates could go up even more to bring down inflation, while others say this could be the end of rate hikes one after the other. If so, you’ll need to move quickly to get the best rates before they are taken away.
MW readers already know that a stocks and shares ISA can be a good way to save for the long term. However, a cash ISA may be a better choice for people who need cash quickly or who are worried about the instability of the market.
You can also put your money in an investment ISA, but MoneyWeek recently reported that the interest rates on these accounts can be very low. If you haven’t already, getting a better rate on a cash ISA could be a good idea since you can still use this year’s £20,000 allowance.
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Top Cash ISAs for January 2024
THE BEST CASH ISAS: EASY TO GET TO
Easy to get cash ISAs let you get to your savings without paying a fee, just like they say.
| ACCOUNT | AER | MINIMUM INVESTMENT | FLEXIBLE ISA | NOTES |
| Moneybox Cash ISA | 5.09% | £500 | Y (maximum 3 withdrawals permitted) | Open the app |
| Zopa Smart ISA | 5.08% | £1 | Y | Open the app |
| Charter Savings Bank Easy Access Cash ISA – Issue 43 | 5.07% | £5,000 | N |
THE BEST CASH ISAS: A FIXED RATE FOR ONE YEAR
You can make a higher rate if you’re willing to keep your money in the account and not take it out for a year. You’ll usually need at least £1,000 to open one of these ISAs. Right now, these are the best one-year fixed-rate ISAs you can get.
| ACCOUNT | AER | MINIMUM INVESTMENT | NOTES |
| Virgin Money 1 Year Fixed Rate Cash ISA Exclusive | 5.25% | No minimum amount | Open online or in the branch |
| Shawbrook 1 Year Fixed Rate Cash ISA | 5.01% | £1,000 | Open online |
| Castle Trust Bank 1 year Fixed Rate e-Cash ISA | 4.97% | £1,000 |
TWO-YEAR FIXED RATE IS THE BEST CASH ISAS
Cash ISA rates are just above 5% if you are willing to lock away your savings for at least two years. But you need to act quickly because cash ISA rates are going down.
| ACCOUNT | AER | MINIMUM INVESTMENT | NOTES |
| Zopa 2 Year Fixed Term ISA | 4.7% | £1 | Open online |
| Post Office 2 Year Fixed Rate Cash ISA | 4.7% | £500 | Open via post or in the branch |
| Furness BS 2 Year ISA | 4.6% | £1,000 | Open online, via post or in the branch |
THREE-YEAR FIXED RATE
| ACCOUNT | AER | MINIMUM INVESTMENT | NOTES |
| UBL UK 3 Year Fixed Rate ISA | 4.41% | £2,000 | Open online, post or in branch |
| Castle Trust Bank 3 year Fixed Rate e-Cash ISA | 4.3% | £1,000 | Open online |
| Close Brothers 3 Year Fixed Rate Cash ISA | 4.25% | £10,000 | Open online |
What you need to know about the best cash ISAS?
There are two major things to think about when picking a cash ISA: how long you are willing to keep your money locked up, and the interest rate.
With an easy access ISA account, you can take out money without being charged a fee.
In a fixed-rate cash ISA, the rate of return stays the same over time. The longer you keep your money in the account, the higher the rate of return generally is. Keep in mind, though, that if you take the money out before the end of the time, you will probably be punished by having the interest rate chopped.
In general, you can make more interest on your money if you leave it alone for a longer time. Many ISAs are “flexible,” which means that you can replace any money you take out in the same tax year without going over your £20,000 yearly ISA allowance.
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