Freedom Isn’t Free UK Personal Finance
Savings
Best ISA Rates UK 2026: What the Tables Miss
In mid-2026 the best easy-access cash ISA rates reach about 4.6% AER, with the top one-year fixed ISAs similar. But a headline rate is only worth chasing once your savings interest breaches your Personal Savings Allowance - GBP 1,000 for a basic-rate taxpayer. Below that, a taxable account can beat a cash ISA.
UK ISA rates and allowances at a glance (2026/27)
| Item | Figure / rule |
|---|---|
| ISA allowance 2026/27 | GBP 20,000 across all ISA types combined |
| Best easy-access cash ISA (representative, Jul 2026) | Around 4.5% to 4.6% AER, often including a bonus that drops after 12 months |
| Best one-year fixed cash ISA (representative, Jul 2026) | Around 4.4% to 4.6% AER, fixed for the term, early-exit penalty |
| Personal Savings Allowance | GBP 1,000 basic rate, GBP 500 higher rate, GBP 0 additional rate |
| Starting rate for savings | Up to GBP 5,000 of interest tax-free for low earners, tapered by other income |
| FSCS protection | GBP 120,000 per person per banking licence (since 1 December 2025) |
| Multiple cash ISAs | Allowed in the same tax year since 6 April 2024 |
| AER | Annual equivalent rate - the true yearly rate including compounding; always compare on AER |