Best Cash ISA Rates (July 2026): Use Your Full £20,000 Before the April 2027 Cut

Want the best cash ISA rates in July 2026? For new money, the Trading 212 easy-access Cash ISA leads at 4.51% AER. If you can lock cash away, a one-year fix from Coventry Building Society pays 4.6%.

But the bigger story is timing. This is the last full tax year that under-65s can shelter the whole £20,000 in cash. From 6 April 2027, that cash limit drops to £12,000. So if you've got cash to protect from tax, using this year's allowance matters more than chasing a fraction of a percent.

TL;DR

• Top easy-access rate (new money): Trading 212 Cash ISA at 4.51% AER. That's 3.6% variable plus a 0.91% bonus for 12 months. (MoneySavingExpert, 22 July 2026.)
• Top one-year fix: Coventry Building Society at 4.6% AER.
• Top two-year fix: Aldermore at 4.65% AER.
• Best "no-fuss" easy-access: Marsden Building Society at 4.22%, no bonus, unlimited withdrawals.
• The deadline that matters: under-65s lose the full £20,000 cash allowance from 6 April 2027. It drops to £12,000. (GOV.UK, June 2026.)
• Your money is safe: the FSCS now protects up to £120,000 per person, per firm.

Easy-access vs fixed: which type first?

Cash ISAs come in two main types. Pick the right shape before you chase a rate.

Easy-access lets you withdraw whenever you want. The rate is variable, so it can fall. It suits money you might need, or if you're just not sure.

Fixed-rate locks your money away for a set term. In return you get a guaranteed rate. Take money out early and you'll usually pay a penalty of several months' interest.

Right now the gap is small. The top easy-access deal (4.51%) sits close to the top one-year fix (4.6%). So there's little reward for locking up if you value flexibility. A fix only wins if you want certainty over a longer stretch.

The best cash ISA rates right now (July 2026)

Here are the current leading rates, pulled from MoneySavingExpert on 22 July 2026. Rates move constantly, so treat this as a snapshot and check the provider's page before you apply.

Easy-access cash ISAs

Source: MoneySavingExpert, 22 July 2026.

Fixed-rate cash ISAs

Source: MoneySavingExpert, 22 July 2026.

A quick honesty note. Trading 212 is our verified partner, and it does top the easy-access table for new money. But it isn't the answer for everyone. More on that below.

Trading 212 Cash ISA: the honest verdict

Trading 212 pays 4.51% AER on its easy-access Cash ISA. That headline splits into two parts: a 3.6% variable rate plus a 0.91% bonus fixed for 12 months (MoneySavingExpert, 22 July 2026).

The 3.6% tracks the Bank of England base rate. Trading 212 sets its standard rate at 0.15% below base rate, and base rate is 3.75% today (Trading 212 Help Centre; Bank of England, held 18 June 2026).

Here's what I like. The rate leads the easy-access market for new money. There's no withdrawal fuss. And your cash stays in cash — it is never invested.

Now the downsides, because they matter.

• The bonus is temporary. After 12 months you drop to the variable rate, currently 3.6%. Diarise the end date and be ready to switch.
• The bonus only covers new money. If you transfer an old ISA in, money from previous tax years earns just 3.6%. For moving a big old pot, Chip (4.42%) or Marsden (4.22%) can beat it.
• The rate is variable. If the base rate falls, so does your return.
• Support is online-only. You get live chat and email, but no phone line.
• It isn't a bank. Trading 212 holds your cash as "client money" across Barclays, NatWest and JPMorgan. All are FSCS-covered (more below).

One more thing. Trading 212 is mainly an investment platform, so the Cash ISA is a loss-leader. That's fine. Just choose the "Cash ISA" when you apply, and skip investing unless you understand the risks.

If a bank beats us, we'll say so

We only earn a commission if you go with Trading 212. We'd still rather you got the right deal.

So: if you want to lock money away, a building society beats us. Coventry pays 4.6% fixed for one year. Aldermore pays 4.65% for two. Those are editorial picks — no affiliate link, no commission for us.

And if you're transferring a large old ISA, the Trading 212 bonus won't apply to that older money. Chip or Marsden may serve you better. Honesty over commission, every time.

Transfers: never just withdraw

This is the mistake that costs people their tax-free status. Do not withdraw cash from one ISA to move it to another.

Instead, open the new account and ask the new provider to transfer it in. They handle the move behind the scenes, and your money keeps its ISA wrapper.

Withdraw it yourself and it loses that protection. To re-shelter it, you'd have to use fresh allowance. A few clicks the right way saves you that headache. For a full walkthrough, see our guide on moving a cash ISA to a stocks and shares ISA.

One catch on fixed ISAs: transferring in usually has a short funding window, often two to four weeks. Miss it and you may lose the rate.

Is your money safe? FSCS and the new £120,000 limit

Yes, within limits. The Financial Services Compensation Scheme (FSCS) protects your savings if an authorised bank or building society fails.

The limit rose to £120,000 per person, per firm, on 1 December 2025. Before that it was £85,000 (FSCS). So most savers are now covered on a much larger balance.

Two things to watch. The limit is per banking licence, and some brands share one. And with Trading 212, your cash sits across Barclays, NatWest and JPMorgan under the client-money rules — each covered by the FSCS.

There's also a temporary high balance rule. Amounts up to £1.4 million can be protected for six months after events like a house sale (FSCS).

The £20,000 allowance and the April 2027 cut

Every UK adult gets a £20,000 ISA allowance each tax year. That's the total across cash, stocks and shares, and other ISAs combined.

Here's why 2026/27 is different. From 6 April 2027, the cash ISA allowance for under-65s falls to £12,000 (GOV.UK, June 2026). Savers aged 65 and over keep the full £20,000.

So this is the last full tax year in which an under-65 can put a whole £20,000 into cash tax-free. After the change, the extra £8,000 has to go into an investment ISA, or nowhere.

A few more details from the government factsheet:

• The overall £20,000 ISA allowance stays the same.
• From April 2027, cash held in a stocks and shares ISA faces a 22% charge on the interest it earns.
• You won't be able to transfer money from an investment ISA back into a cash ISA.

If cash ISAs are core to your plan, this year matters. For the full breakdown, read our guide to the cash ISA allowance cut in 2027, and what the new 22% tax on cash in a stocks and shares ISA means.

When a stocks and shares ISA may beat cash

A cash ISA protects savings interest from tax. But over long periods, cash can lag investing.

Here's my rule of thumb. Money you need within five years? Keep it in cash. Money you won't touch for five years or more? A stocks and shares ISA is worth a look.

Investments can fall as well as rise, so there are no guarantees. But historically, a diversified fund has tended to beat cash over long stretches. A low-cost index fund or ETF is the usual starting point — see our guide to the best ETFs for beginners.

A verified option for a stocks and shares ISA is Trading 212 or InvestEngine. Both offer low-cost UK investing. Just remember the new 22% charge from 2027 — a stocks and shares ISA is for investing, not for parking pure cash.

Also weigh the personal savings allowance. Basic-rate taxpayers can earn £1,000 of savings interest tax-free outside an ISA. If your interest stays under that, an ISA saves you less. We cover the maths in savings interest and tax for 2026/27.

Who should pick what

• You might need the cash, or you're unsure: an easy-access cash ISA. Trading 212 leads for new money at 4.51%.
• You want a fixed rate and can lock it away: Coventry at 4.6% for one year, or Aldermore at 4.65% for two.
• You're transferring a big old ISA pot: compare Chip or Marsden, where the rate applies to all your money.
• You want zero fuss and phone support: Marsden at 4.22%, no bonus games.
• You're investing for five-plus years: consider a stocks and shares ISA instead.

How to get started

1. Check your allowance. You get £20,000 across all ISAs in 2026/27. See what you've already used.
2. Choose the type. Need access or unsure? Go easy-access. Happy to lock up? A fix gives certainty.
3. Check the live rate. Rates change often. Confirm today's number on the provider's page.
4. Open the account. For easy-access on new money, I rate the Trading 212 Cash ISA — choose the "Cash ISA", not Invest or CFD.
5. Fund it correctly. Paying in new money? Just deposit. Moving an old ISA? Use the transfer form — never withdraw.
6. Set a reminder. Note when any bonus ends, usually 12 months. Then switch if the rate drops.

FAQ

What are the best cash ISA rates in July 2026? For easy-access new money, Trading 212 leads at 4.51% AER. For a one-year fix, Coventry Building Society pays 4.6%. Rates change often, so check before you apply (MoneySavingExpert, 22 July 2026).

Is the Trading 212 Cash ISA safe? Your cash is held as client money across Barclays, NatWest and JPMorgan, each covered by the FSCS up to £120,000 per firm. The cash is never invested.

Can I open more than one cash ISA in a year? Yes. Since April 2024 you can pay into multiple cash ISAs in the same tax year. You just can't exceed £20,000 across all ISAs combined.

What happens to my cash ISA allowance in April 2027? For under-65s, the cash ISA limit drops from £20,000 to £12,000 from 6 April 2027. Those aged 65 and over keep £20,000 (GOV.UK, June 2026).

Easy-access or fixed — which is better? Neither, in the abstract. Easy-access gives flexibility with a variable rate. A fix gives a guaranteed rate but penalises early withdrawal. Today the rates are close, so flexibility often wins.

Do I pay tax on cash ISA interest? No. Interest earned inside a cash ISA is tax-free. Outside an ISA, a personal savings allowance may still cover some interest — see our savings and tax guide.

This is general information, not financial advice. Rates and rules are current as of July 2026 and can change — always check the provider's website before you act. Do your own research and consider speaking to a qualified adviser about your situation.

Last updated: 26 July 2026.