Cash ISA & Fixed-Rate Savings Comparison
Sort 17 current UK cash ISA and fixed-rate savings products side by side. See AER, term, minimum deposit, FSCS protection, and your projected interest on any deposit amount. Filter by account type or show ISA-eligible only.
How to read this comparison
AER (Annual Equivalent Rate) is the standardised interest figure that lets you compare products with different interest payment schedules — it assumes interest is compounded annually even if the product pays monthly. Two accounts at the same AER produce the same total return over a year, regardless of compounding.
Fixed-rate bonds lock your money away — you cannot withdraw during the term without a penalty, or at all in some cases. Easy-access accounts let you move money freely but the rate is variable and providers can cut it with notice. Notice accounts sit between the two: competitive rates, but you must give the specified notice (typically 30, 60, 90, 120 or 180 days) to withdraw.
ISA-eligible products (green badge) shelter interest from tax permanently — it never counts toward your Personal Savings Allowance and never shows on a self-assessment return. Non-ISA (navy) products pay interest gross, and you pay income tax on anything above your PSA: £1,000 for basic rate, £500 for higher rate, £0 for additional rate.
FSCS £120,000 limit explained
The Financial Services Compensation Scheme protects deposits up to £120,000 per person per banking licence (raised from £85,000 in December 2025). If your bank fails, you get up to £120,000 back, typically within seven working days. Joint accounts are protected up to £240,000 because both names count.
The catch: protection is per licence, not per brand. HSBC and First Direct share one licence. Lloyds, Halifax, Bank of Scotland and Intelligent Finance share another. If you hold £120,000 across brands on the same licence, only £120,000 in total is protected — the rest is unsecured. For balances above £120,000, split across licences or use NS&I (backed by HM Treasury, unlimited).
Note: the £85,000 limit still applies to investmentprotection (stocks and shares ISAs, SIPPs, investment accounts). Only deposit products — cash ISAs, easy-access savings, fixed-rate bonds, notice accounts, current accounts — moved to the £120,000 limit.
When the ISA wins, when the bond wins
A cash ISA pays tax-free interest inside the £20,000annual allowance. A fixed-rate bond outside an ISA usually pays a higher headline AER but interest counts toward your Personal Savings Allowance — £1,000for basic-rate taxpayers, £500 for higher-rate, zero for additional-rate. Interest above your PSA is taxed at your marginal rate.
Worked example. A higher-rate taxpayer with £50,000 at 4.75% in a fixed-rate bond earns £2,375 gross. The first £500is tax-free via PSA, leaving £1,875taxed at 40% — a £750tax bill. Net: £1,625. The same £50,000 at 4.50% in a cash ISA earns £2,250 and keeps all of it — so the ISA wins by £625 on a 25bp lower headline rate.
For basic-rate taxpayers with modest savings, the PSA of £1,000 usually covers all interest, so a higher-rate bond wins outright. Additional-rate taxpayers always pay full tax on non-ISA interest — the ISA almost always wins for them.
Rates shown are indicative and sourced from publicly advertised best-buys as of 9 May 2026. Provider rates change frequently — always verify the live AER on the provider's site before opening an account. This tool is for informational purposes only and does not constitute financial advice. You should seek independent financial advice before making any investment decisions. GiltEdge is not regulated by the FCA.