Best Cash Isa rates this week

The personal savings allowance means basic rate taxpayers can earn £1,000 interest tax free without using their Isa, and people who pay the 40% rate can get £500.

But remember that wrapping your money in an Isa means you won't need to worry about a future tax bill because your savings pot has grown and you're earning more than the tax-free threshold.

Everyone aged over 16 can save up to £20,000 in an Isa during the 2017/18 tax year.

The main reason not to use an Isa for your savings is if doing so will eat into the amount you could put into an investment Isa, where the tax relief could save you far more tax, as your investments are likely to grow faster.

Find the best Cash Isa or savings account for you

EASY ACCESS ISAs

When picking an Isa, the first thing to decide is whether you want to fix your interest rate or opt for more flexibility with a variable rate. If you want to make additional deposits beyond the upfront opening deposit, or make withdrawals, then a variable rate Isa with easy access is probably most suitable for you.

Post Office Money Online Isa (Easy Access Issue 10) 1.01% AER
This online-only account is available for balances over £100. There's no limit to how much you can put in the account but remember that this account includes a 0.76% bonus for the first year. After this the rate will drop to 0.25% so make a note in your diary and switch when this happens.

Virgin Money Defined Access e-Isa (Issue 13) 1.01% AER
This rate includes a 0.76% bonus which is only payable for the first year. Savers are limited to three withdrawals in a year. Online only.

The AA Easy Access Isa (Issue 10) 1.01% AER
This account accepts transfers in from other accounts and you must operate it online. Minimum balance is £1. Includes an introductory bonus of 0.81%.

NOTICE ACCOUNT ISAs

Notice accounts need you to plan withdrawals in advance, but the rates can be higher than those offered by instant access. Be aware these products are more likely to offered tiered rates, so the interest you get depends on your account balance.

Melton Mowbray 60 Day Notice Cash Isa 1.3% AER
You can open this account in branch or via post. Minimum balance is £25 and no transfers from other providers are permitted.

FIXED RATE ISAs

If you want to secure the interest rate you earn on your savings, and are happy to lock your money away for a set period of time, a fixed rate Isa might be for you.

ONE YEAR

Bank of Cyprus UK One Year Fixed Rate Isa 1.13% AER
Savings here are protected up to £85,000 by the FSCS. This account can only be opened online with a balance of £500 or more.

Virgin Money Fixed Rate Cash Isa (Issue 273) 1.11% AER 
Available in branch, by post, over the phone or online - this pays 1.11%.Transfers must be made within 30 days of account opening.

Ford Money One Year Fixed Rate Cash Isa 1.05% AER
Can be opened with £500 and transfers from other Isa providers are accepted. Rate is fixed for 12 months and the account is online only. 

TWO YEAR

Bank of Cyprus UK Two Year Fixed Rate Isa 1.23% AER 
This product offers a 1.23% rate, fixed for two years. The account can be opened online for balances above £500.

Virgin Money Fixed Rate Cash ISA (Issue 271) 1.21% AER 
Available in branch, by post, over the phone or online. Transfers are accepted from other Cash Isa providers.

Paragon Bank Two Year Fixed Rate Isa 1.2% AER 
This offers a 1.2% rate on balances above £500. Account can be opened online only. Transfers from other Isas are permitted.

THREE YEAR

Coventry Building Society Fixed Rate Isa (Issue 46) 1.4% AER
This offers a 1.4% rate on balances above £1. Account can be opened in branch, over the phone, by post or on the internet. Transfers from other Isas are permitted.

Principality Building Society Three Year Fixed Rate Cash Isa (Issue 175) 1.3% AER
This deal is fixed for three years for balances over £500. The account can be opened in branch or online.

Bank of Cyprus UK Fixed Rate Cash Isa 1.28% AER
Rate is fixed for 36 months and is available on balances over £500. Only operated online.

FIVE YEAR

Paragon Bank Five Year Fixed Rate Isa 1.8% AER
This pays 1.8% and can be opened online only. Transfers are accepted and the minimum balance is £500

Virgin Money Fixed Rate Cash Isa (Issue 272) 1.75% AER
Fixed for five years at 1.75% and available in branch, by post, over the phone or online. Balances must be over £1.

Nationwide Building Society Five Year Fixed Rate Isa 1.65% AER
This five year fix offers a rate of 1.65%. This account can be opened online or in branch. Balances must be over £1.

JUNIOR ISAS

If you're looking to put some cash aside for your kids, Junior Isas are a great way of doing so. These accounts are available to anyone under 18 and tend to offer much higher rates than adult accounts, but there are some restrictions. Read Moneywise's guide to Junior Cash Isas to find out more.

Coventry Building Society Junior Cash Isa 3.25% AER
Accounts can be opened with a pound in branch, online or by post. Interest is paid annually on 30 September.

Darlington Building Society Junior Cash Isa 3% AER
This account is available to all and can be opened in branch or over the phone. Minimum balance is £1.

Halifax Junior Cash Isa 3% AER
Transfers in are accepted and the minimum balance is £1. This account is only available in branch, however.  

Nationwide Smart Junior Isa 3% AER
Also pays 3% AER. Again, the minimum opening balance is £1. It’s only available in branch. Interest is paid annually on 31 October. 

Tesco Junior Cash Isa 3% AER
Open this account with as little as £1. Tesco's Junior Cash Isa can be accessed online and over the phone

TSB Junior Cash Isa 3% AER
This branch-only account also offers a 3% rate of interest for young savers and accepts transfers from other accounts.

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HOW ARE THESE PRODUCTS PICKED?

We look across as much of the of the savings market as possible to find the best deals using industry data from Defaqto. 

All our picks are nationally available - online, by post or by phone. We try and pick products that are available to both new and existing customers, but we’ll highlight some offers for existing customers if they’re much better than what else is on offer. 

Unless rates are significantly higher than on other accounts, we avoid products that pay an initial bonus (which is normally a euphemism for a rate cut after 12 months), or those with tiered rates (these may not pay the advertised interest rate if your balance rises above or falls below a set amount). 

Deals only available to particular age groups or for “additional subscriptions” are also not included. 

All these savings accounts are covered by the FSCS unless otherwise specified. We will prioritise products from UK-based providers. If your bank is licenced by another European country, savings up to €100,000 will be protected, but by the government where the bank is headquartered, rather than the UK authorities. 

We reserve the right to use our discretion at all times.

To see all the savings accounts we consider, visit our savings and Isa comparison tools.

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