Where to find the best cash Isa rates

Savers can put up to £15,240 into cash Isas. We round up the best fixed and variable deals and highlight the catches

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Take note: the best cash Isa rates are on fixed-term accounts Credit: Photo: ALAMY

Savers can put up to £15,240 in a cash Isa for the 2015-16 tax year.

Here, we name the top fixed-rate cash Isas (where your money is locked into a specified rate for the whole term) and the top easy-access Isas (where the rate is variable, but you can access your money as many times as you want).

Bookmark this page updated on a regular basis for the latest Isa deals or opt for our weekly money round-up.

Don't forget that there are alternative accounts that could pay more on your savings pot, such as high-paying current accounts. See our favourites here.

Best fixed-rate deals

ONE YEAR: Leeds Building Society pays 1.65pc on a minimum balance on balances over £100. Transfers in are allowed and early closure is subject to 60 days loss of interest.

Al Rayan Bank pays a significantly higher rate of 1.9pc on a minimum deposit of £1,000. However, the bank operates under Sharia Law which means the account doesn't pay interest - instead it pays an 'expected profit rate' which it says it always achieves.

TWO YEARS: State Bank of India pays 2pc on balances above £5,000. The account can only be opened and accessed by post or in branch. SBI allows early closure, however 30 days notice must be given. The interest paid will be reduced to 1pc which will be applied to the sum held over the whole term.

For smaller sums, UBL pays 1.95pc on a minimum deposit of £2,000.

THREE YEARS: UBL and State Bank of India both offer a top rate of 2.3pc.

UBL requires a minimum deposit of £2,000. Those who need to close the account early will face a penalty - the equivalent of 270 days gross interest. The UBL account requires the interest to be paid into another account which means it cannot be compounded.

State Bank of India also pays 2.3pc. Savers must open an instant access savings account with the bank. Compound interest can be earned, but only if customers opt to have it paid on maturity. Those who choose annual interest will have it paid into the SBI instant access savings account which offers 1.25pc. Early withdrawals are allowed but interest will be reduced by 1pc.

FOUR YEARS: There is only one four-year account on the market and it is offered by Welsh bank, Julian Hodge Bank. It pays 2.05pc - a lot lower than the top three-year account. However, customers can opt to have the interest compounded. Early closure is allowed subject to 180 days loss of interest.

FIVE YEARS: State Bank of India pays 2.6pc on balances above £5,000. UBL offers 2.55pc on a smaller sum of £2,000.

Best easy-access deals

[NOTICE ACCOUNT] Al Rayan Bank pays 2.pc on deposits above £250. Withdrawals are subject to 120 days notice or loss of interest. However, as stated above this 2pc rate is an "expected profit rate" which is not guaranteed.

Punjab National Bank pays 1.65pc but the account can only be opened in one of its seven branches.

[NOTICE ACCOUNT] Mansfield Building Society pays 1.55pc. Withdrawals are allowed as long as 60 days notice is given. Transfers in are not allowed.

[THREE OR LESS WITHDRAWALS A YEAR] Virgin Money offers 1.51pc and customers just need £1 to open the account. However, the rate drops to 0.75pc if more than three withdrawals are made. Transfers in accepted.

Coventry Building Society and Monmouthshire Building Society both pay 1.5pc. Coventry BS allows transfers in and the account can be opened with £1.

Monmouthshire BS does not permit old Isas to be transferred and customers need £10 to open the account.

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