Best Cash ISAs in the UK right now
Wanting to find the best Cash ISA rate on the market? We're giving you all the need-to-know information, from which account has the best interest rate - to which gives you the best bang for your buck!
The low-down on Cash ISAs
If you’re saving for your first home, wedding, a DFS sofa, expanding your family, or any other big life milestones, a Cash ISA lets you save up to £20,000 a year without paying a penny of tax on your interest. Different providers of Cash ISAs will vary on the T&Cs associated with this tax-free savings account, from the interest rate they pay on your savings, to how many times you can withdraw from your savings in a given year, to extra products you can benefit from when saving with them.
What is the best Cash ISA in the UK?
When it comes to a competitive interest rate with no drop-off and amazing customer service, we believe that the Tembo Cash ISA is the best Cash ISA in the UK. Not only do customers benefit from a competitive interest rate of 4.1% AER (variable), but that rate won't change just because you've been with us for longer than 12 months, you make multiple withdrawals or your balance falls too low (unlike other providers). Plus, as an award-winning mortgage and savings platform, savings customers also get fee-free access to the Tembo mortgage service.
Don't believe us? Let’s take a look at the top Cash ISAs available right now in the UK.
The below list is based on UK Cash ISA accounts providing the best product for customers, subject to interest rate. Accurate up to August 2025. Tax treatment depends on your individual circumstances and may be subject to change in the future.
1. Tembo Cash ISA
If you're looking for the best bang for your buck - the app-based Tembo Cash ISA ticks all boxes. Not only do customers benefit from a competitive interest rate of 4.1% AER (variable) paid monthly, meaning you'll earn 2.7x more in interest than if you were to save with the Big Four’s easy-access, instant Cash ISA accounts*. But our rate doesn't change just because you've been with us for longer than 12 months, or because your balance falls too low, or you make multiple withdrawals (unlike other providers).
Most importantly, holders of a Tembo Cash ISA will also have access to fee-free, award-winning mortgage advice with Tembo - whether you're looking to buy your first home, remortgage or switch to a better deal, or help a loved one buy.
*Based on saving £100 at the beginning of each month for 5-years. Calculations show at month 61 (after 5-years) Tembo customers saving at 4.10% would have £436.62 on average more than saving with Barclays, HSBC, NatWest or Lloyds. Accurate August 2025.
Save for your future with our competitive, easy-access Cash ISA
Save up to £20,000, tax-free every year with a Tembo Cash ISA, where you'll have access to our competitive interest rate of 4.1% AER (variable), unlimited withdrawals, fee-free mortgage advice, and monthly paid interest. Open with as little as £10 today
2. Trading 212
If just getting the best interest rate for a short period is your top priority, take a look at Trading 212. Their Cash ISA currently pays the top rate of 4.46% AER (variable) for the first 12 months and 3.85% AER (variable) after that.
Transfers beware! If you transfer in an existing ISA, you won’t have access to the introductory rate. You’ll earn 3.85% AER (variable) instead.
3. Plum
This app-based Cash ISA currently pays the top rate of 4.41 AER (variable) for the first 12 months and 3.04% AER (variable) after that.
There are a few caveats, though. If you transfer in an existing ISA, you won’t have access to the introductory rate. You’ll earn 3.04% AER (variable) instead. It’s quick and easy to withdraw from your Plum Cash ISA (withdrawals are paid within 1 working day), but you’ll earn just 3.04% AER (variable) if your balance drops below £100 or you make four withdrawals in a year. So if you want regular access to your cash without affecting your interest rate, you may be better suited to a different provider.
4. Chip
Looking for an instant Cash ISA with a generous interest rate and no minimum balance requirements? Chip’s Cash ISA currently offers 4.70% AER (variable tracker) interest for the first 3 months, but this then drops to 3.04% AER (variable tracker). Keep in mind that this is a tracker rate, meaning it's tracking at 0.96% under the Bank of England base rate. So if the base rate goes down, so will Chip's rate.
The account gives you full flexibility over your savings, as there are no limits on the number of withdrawals you can make, and as a flexible cash ISA, you can also take out money and put it back into the account without affecting your annual £20,000 ISA allowance.
Important!
If you take money out of your Fixed Term ISA pot before the term ends, you’ll break the term and pay an interest charge.
5. Moneybox
Moneybox's Cash ISA pays 4.20% AER (variable) for new customers. However, this drops down to 3.95% AER (variable) after the first 12 months. Plus, if you make four or more withdrawals within the 12-month period from the date of opening your Cash ISA or your balance falls below £500, you'll earn a much lower rate of interest at 3.45% AER (variable).
What other saving options are there?
If you’re saving for your first home (or retirement) a Lifetime ISA can be even more rewarding than your typical Cash ISA. Not only will you earn tax-free interest on your savings, you’ll also benefit from a 25% bonus from the government. You can place up to £4,000 of your ISA allowance in your LISA each year, meaning you could get a £1,000 government boost each year that you max out your account.
You might also like: How much should I put into savings each month?
Be aware that Lifetime ISAs can only be used to purchase your first home (up to a value of £450,000) or fund retirement. Withdrawals from a Lifetime ISA for any purpose other than buying a first home or for retirement will incur a 25% government penalty, meaning you may get back less than you paid in.
Our Cash Lifetime ISA just got a glow up ✨
Open a Tembo Lifetime ISA today for our market-leading rate of 4.1% AER (variable). Plus, we're giving our Lifetime ISA savers a 1% bonus on the funds used towards their first home purchase through Tembo. Head to the Tembo app to claim the offer by the 30th September 2025 (T&Cs apply)
