Best Cash ISAs to open before Rachel Reeves’ March 26 announcement | Personal Finance | Finance

As Chancellor  Rachel Reeves’s spring statement approaches, UK savers may face potential changes to Cash ISAs rules. With the Treasury reportedly considering reforms, including the possibility of slashing the £20,000 annual tax-free allowance to just £4,000, many savers are racing to make the most of the current, more generous limits.

What’s more, the end of the tax year will land on April 5, so there’s only a short window left to take full advantage of your £20,000 allowance. After this date, any unused portion of your allowance will expire, and you won’t be able to carry it over into the next tax year.

Top easy access Cash ISAs

For those looking to take advantage of the current £20,000 annual limit, several Cash ISAs are offering competitive interest rates, with some even paying as high as 5.25%.

An easy-access ISA allows you to deposit and withdraw money, typically without penalties, while still earning tax-free interest on your savings. Here are the top accounts at the time of writing.

Chip’s Easy Access Cash ISA

Leading the pack is the easy-access Cash ISA from the app Chip, offering an impressive 5.25% interest rate. This account allows for flexible saving, meaning you can withdraw and replace funds within the same tax year without impacting your annual ISA allowance. The account has no penalties or restrictions on withdrawals, making it ideal for savers seeking both high interest and flexibility.

The account is easy to open with a minimum deposit of just £1, and new customers can take advantage of a 0.89% bonus rate for the first three months by entering the code “CASHISA” on Chip’s website.

After the bonus period, the interest rate reverts to a competitive 4.32% AER. Although Chip requires a subscription to access the account, both free and paid options are available.

Trading 212 Cash ISA

Not far behind Chip in the rankings is the Trading 212 easy-access Cash ISA, offering an AER of 4.77%. This includes a 0.27% bonus for 12 months, and the interest is paid monthly. There are no withdrawal restrictions, providing plenty of flexibility for savers. While slightly lower than Chip’s offering, it remains a strong contender for those looking for simplicity and competitive returns.

Plum’s Easy Access Cash ISA

Plum’s Cash ISA offers an AER of 4.76% on deposits of £100 or more. This rate includes a 1.2% bonus for the first 12 months, and interest is also paid monthly. However, it’s important to note that Plum imposes a lower interest rate if you make more than three withdrawals in a calendar year. For savers who can keep their withdrawals to a minimum, Plum offers a competitive rate with fewer restrictions.

Top one-year fixed rate Cash ISAs

For savers who can afford to lock their money away for a set period, fixed-rate Cash ISAs could be a worthwhile option. The interest rate is guaranteed for the entire term, which can provide peace of mind in uncertain times. However, there are typically penalties imposed on withdrawals, which result in a loss of interest.

Here are the top Cash ISAs with a one-year fixed rate at the time of writing:

Vida Savings

Vida Savings offers a competitive 4.46% AER on its one-year fixed-rate Cash ISA. The minimum opening amount is £500, and while the account offers earlier access, it comes with a penalty: a 90-day loss of interest if you close the account before the term ends.

Hampshire Trust Bank

Hampshire Trust Bank provides a 4.41% AER on its one-year fixed-rate Cash ISA, with a minimum opening amount of £1. Like Vida Savings, early access to funds is available, but you will face a 90-day loss of interest if you close the account early.

OakNorth Bank – 4.41% AER

OakNorth Bank also offers a 4.41% AER on a one-year fixed-rate Cash ISA. The minimum deposit is just £1, and earlier access is allowed, but like the other accounts, it comes with a 90-day loss of interest if you access your money before the maturity date. Withdrawals must be made via a nominated account.

Top two-year fixed rate Cash ISAs

Here are the top Cash ISAs with a two-year fixed rate at the time of writing:

Close Brothers Savings

Close Brothers Savings offers a 4.41% AER on its two-year fixed-rate Cash ISA, with a minimum opening amount of £10,000. Early access is available, but it comes with a significant penalty: a 150-day loss of interest if you close the account before the term ends.

Hodge Bank

Hodge Bank provides a 4.32% AER on its two-year fixed-rate Cash ISA, with a minimum deposit of £1,000. Like other fixed-rate options, earlier access is possible, but you will face a 180-day loss of interest if you decide to withdraw your funds before the term is complete.

Hampshire Trust Bank

Hampshire Trust Bank offers a 4.31% AER on its two-year fixed-rate Cash ISA, with a minimum opening amount of £1. Early access is allowed but comes with a 180-day loss of interest penalty, similar to Hodge Bank.

Top five-year fixed rate Cash ISAs

Here are the top Cash ISAs with a five-year fixed rate at the time of writing:

Hodge Bank

Hodge Bank offers a 4.28% AER on its five-year fixed-rate Cash ISA, with a minimum opening amount of £1,000. Early access is available, but it comes with a penalty of a 365-day loss of interest if you choose to withdraw funds before the term ends.

Close Brothers Savings

Close Brothers Savings provides a 4.27% AER on its five-year fixed-rate Cash ISA, with a higher minimum deposit of £10,000. Similar to Hodge Bank, early access is allowed, but you will face a 365-day loss of interest if you close the account before the five-year term is up.

Hinckley & Rugby Building Society

Hinckley & Rugby Building Society offers a 4.25% AER on its five-year fixed-rate Cash ISA, with a minimum opening amount of £500. Early access is possible, but it comes with a 365-day loss of interest penalty.