Helping you save smart, grow your money tax-free, and understand your options with confidence.
Whether you’re building an emergency fund, saving for a future home, or planning ahead for family back in Naija, a Cash ISA (Individual Savings Account) could be the perfect way to grow your savings without paying tax on the interest. This guide, specially edited for Nigerians in the UK, breaks it all down in simple terms – no jargon, just facts.
All the accounts listed are FSCS-protected, meaning your money (up to £85,000) is insured by the UK government.
📌 What is a Cash ISA?
A Cash ISA is like a savings account that pays you tax-free interest. You can save up to £20,000 per year (per tax year – that’s April 6 to April 5 the next year) and keep every penny of the interest you earn.
There are different types of ISAs:
- Cash ISAs (for saving cash)
- Stocks and Shares ISAs (for investing)
- Lifetime ISAs (for first-time homebuyers)
- Innovative Finance ISAs (peer-to-peer lending)
- Junior ISAs (for your children – limit: £9,000 per year)
🏆 Best Cash ISAs (as of June 2025)
We’ve broken down the best Cash ISAs available online in the UK – covering easy access, 1 to 5-year fixed-rate options – ideal whether you’re saving for short or long-term goals.
💡 Tip for Naija UK Connect members: Many of these ISAs can be opened with as little as £1 – great if you’re starting small or managing multiple commitments.
🚪 Top Easy Access Cash ISAs
Withdraw your money anytime. All online. Interest rates are AER (variable).
| Provider | Interest Rate (AER) | Start From | Interest Paid | Transfers In | Rating |
|---|---|---|---|---|---|
| Lightyear | *.**% | £1 | Monthly | ✅ | ⭐⭐⭐⭐⭐ |
| CMC Invest | *.**% | £1 | Monthly | ✅ | ⭐⭐⭐⭐⭐ |
| Trading 212 | *.**% | £1 | Daily | ✅ | ⭐⭐⭐⭐⭐ |
| Moneybox | *.**% | £500 | Annually | ✅ | ⭐⭐⭐⭐⭐ |
| Moneyfarm | *.**% | £500 | Monthly | ✅ | ⭐⭐⭐⭐⭐ |
| Chip | *.**% | £1 | Monthly | ❌ | ⭐⭐⭐⭐⭐ |
| Marcus by Goldman Sachs | *.**% | £1 | Monthly | ❌ | ⭐⭐⭐⭐ |
| Plum | *.**% | £100 | Monthly | ✅ | ⭐⭐⭐⭐ |
👀 Note: “Variable” means the rate can go up or down.
🔐 Top 1-Year Fixed-Rate Cash ISAs
Save for 1 year and earn fixed interest. Great for short-term goals.
| Provider | Interest Rate (AER) | Start From | Interest Paid | Transfers In | Rating |
|---|---|---|---|---|---|
| Shawbrook | *.**% | £1,000 | Monthly/Annually/End | ✅ | ⭐⭐⭐⭐ |
| OakNorth | *.**% | £1 | End of term | ✅ | ⭐⭐⭐⭐ |
🔐 Top 2-Year Fixed-Rate Cash ISAs
Perfect if you don’t need your money for 2 years.
| Provider | Interest Rate (AER) | Start From | Interest Paid | Transfers In | Rating |
|---|---|---|---|---|---|
| Shawbrook | *.**% | £1,000 | Monthly/Annually/End | ✅ | ⭐⭐⭐⭐ |
| OakNorth | *.**% | £1 | End of term | ✅ | ⭐⭐⭐⭐ |
🔐 Top 3-Year Fixed-Rate Cash ISAs
Good for medium-term plans, like school fees or business capital.
| Provider | Interest Rate (AER) | Start From | Interest Paid | Transfers In | Rating |
|---|---|---|---|---|---|
| Shawbrook | *.**% | £1,000 | Monthly/Annually/End | ❌ | ⭐⭐⭐⭐ |
| OakNorth | *.**% | £1 | End of term | ✅ | ⭐⭐⭐⭐ |
🔐 Top 5-Year Fixed-Rate Cash ISAs
Thinking long term? This could give you the best return.
| Provider | Interest Rate (AER) | Start From | Interest Paid | Transfers In | Rating |
|---|---|---|---|---|---|
| Shawbrook | *.**% | £1,000 | Monthly/Annually/End | ✅ | ⭐⭐⭐⭐ |
📈 Should You Choose Fixed or Easy Access?
- Easy Access: Great if you need flexibility. Think day-to-day needs, remittances to Nigeria, or emergency funds.
- Fixed Rate: Great if you can lock money away for a while. You usually get higher interest in return.
🔄 Can I Transfer an Existing ISA?
Yes! You can move your current ISA to another provider with better interest. But don’t just withdraw and re-deposit – that can mess with your £20,000 limit. Ask your new provider for an ISA transfer instead.
🧮 How ISAs Help You Avoid Tax on Savings
Even though most people in the UK can earn some interest tax-free thanks to the Personal Savings Allowance, this can be limited depending on your income level:
| Income Range | Personal Savings Allowance | Tax on Interest Above That |
|---|---|---|
| £12,571–£50,270 | £1,000 | 20% |
| £50,271–£125,140 | £500 | 40% |
| Over £125,140 | £0 | 45% |
With a Cash ISA, you don’t pay any tax on interest – ever. Simple.
🔐 FSCS Protection – Is My Money Safe?
Yes. Up to £85,000 per person, per provider is protected under the Financial Services Compensation Scheme (FSCS). So if your bank goes under, your cash is still safe.
🇳🇬 Naija Note: Not all providers are household names – but if they’re FSCS-registered, your money is protected. Focus on the rate, not just the brand.
✅ Final Tips for the Naija UK Connect Community
- Start small: Even with £1, you can begin.
- Make it regular: Set a monthly standing order from your current account.
- Think ahead: Saving towards school fees (either in the UK or Nigeria), family support, or a future home? Let your ISA work for you.
- Ask questions: Don’t be shy. Contact us or ask your bank directly. No question is too small when it comes to your money.
💬 Need Help Choosing?
We’re here to support your financial journey in the UK. Whether you’re just starting out or already saving, choosing the right Cash ISA can make a big difference. Check out our Best Cash ISAs List and let your money grow smarter.
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