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Retirement Living Guides > Here are the Best Cash ISA Rates For Over 60s

Here are the Best Cash ISA Rates For Over 60s

ISA (individual savings account)

Estimated Reading Time: 15 minutes

Cash ISAs (individual savings accounts) offer numerous benefits for people aged 60 and over. These are a brilliant way of keeping your money safe while also earning tax-free interest on your savings. You can put up to £20,000 in a cash ISA for the 2023/24 tax year!

In this article, we’ve explained more about what cash ISAs are and how they work, the pros and cons, alternatives and some of the best cash ISA rates for over 60s currently available on the market.


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In this article:

  1. What is a cash ISA for over 60s?
  2. How do ISAs for over 60s work?
  3. Browse the best cash ISAs for over 60s
  4. Martin Lewis' advice on ISA rates
  5. Pros and cons of cash ISAs for over 60s
  6. Alternatives



What is a Cash ISA For Over 60s?

A cash ISA (individual savings account) for over 60s is a type of savings account with additional tax benefits.

There are a few different kinds of ISAs to choose from. Cash ISAs allow people to earn interest on their savings, without having to pay income tax on these earnings. The maximum amount you can save in a cash ISA for the 2023/24 tax year is £20,000.





How Do ISAs For Over 60s Work?

There are several similarities between standard savings accounts for over 60s and cash ISAs. The main differences are that:

  • All the money you earn through interest in a cash ISA is completely tax-free
  • The maximum amount you can pay in each year is £20,000
  • You can only pay into one cash ISA each year (though this can be a different ISA from year to year)

Remember, cash ISAs work within the tax year, rather than the calendar year. This means the amount of money you can place in an ISA resets at the end of the financial year. The 2023 tax year officially ended on April 5th and began on April 6th.

There are different types of ISAs, similar to that of savings accounts. Some ISAs offer higher interest rates in return for limited access to your money, and vice-versa.

The first £85,000 you save with a single provider - a bank or building society - is protected by the Financial Services Compensation Scheme.





Browse the Best Cash ISAs For Over 60s

Below, we’ve compiled some of the best cash ISAs for over 60s on the market. The best cash ISA for you will depend on how you’d like to save and how much access you’d like to have to your savings.


Key things to consider include:

  • Interest rates
  • How often you can make withdrawals
  • If there’s a notice period
  • Set-up costs

With each ISA, we’ve provided the interest rate. AER (Annual Equivalent Rate) indicates the interest rate you’d be paid if interest was paid on an annual basis. In reality, interest rates may fluctuate slightly from month to month.


Instant Access ISAs and Easy Access ISAs

You can make as many withdrawals as you wish through an Instant Access ISA - and there’s no charge for doing so.

Instant Access ISAs and Easy Access ISAs are very similar. Often, the main difference is simply how they’re referred to.

These types of ISAs usually offer a bonus interest rate for the first 12 months. After this, the interest rate falls. You can either stick with your current ISA, or move to a different account.

ISA Name Provider Interest Rate Minimum Balance Required Protected By the FSCS?
Triple Access Cash ISA Paragon 4.25% £1 Yes
Online ISA Cynergy Bank 5.00% £1,000 Yes
Easy Access Cash ISA Shawbrook 4.70% £1,000 Yes
Limited Issue Online Access ISA Leeds Building Society 5.00% £1,000 Yes
Instant Access Savings ISA Swansea Building Society 4.25% £1 Yes
ISA Bonus Saver Halifax 4.10% £1 Yes

Paragon Triple Access Cash ISA

Paragon’s Triple Access cash ISA allows you to begin saving tax-free while making unlimited deposits up to a maximum account balance of £500,000. You can make up to three withdrawals every year without your interest rate being impacted.

Interest rate: 4.25% (Annual Equivalent Rate)

Minimum balance: £1 to open an account

Protection scheme: Financial Services Compensation Scheme (FSCS)

Click here to learn more about the Paragon Triple Access Cash ISA.



Cynergy Bank Online ISA

This cash ISA is great for over 60s, thanks to how easy the account is to manage. You can make round-the-clock unlimited withdrawals, while transfers to and from others ISAs can be made as well.

Interest rate: 5.00% (Annual Equivalent Rate)

Minimum balance: £1 to open an account

Protection scheme: Financial Services Compensation Scheme (FSCS)

Click here to learn more about the Cynergy Bank Online ISA.



Shawbrook Easy Access Cash ISA

This Easy Access cash ISA allows people aged 60 and over to have regular access to their savings while also earning interest on them. A minimum initial investment of £1,000 is required to open one of these tax-free savings accounts.

Interest rate: 4.70% (Annual Equivalent Rate)

Minimum balance: £1,000 to open an account

Protection scheme: Financial Services Compensation Scheme (FSCS)

Click here to learn more about the Shawbrook Easy Access Cash ISA.



Leeds Building Society Limited Issue Online Access ISA

This online ISA does exactly what it says on the tin - offering convenient online management. This is ideal for people aged 60 and over who aren’t always able to travel to a bank or building society.

Here, you can access funds at any time, with the initial deposit required being at least £1,000.

Interest rate: 5.00% (Annual Equivalent Rate)

Minimum balance: £1,000 to open an account

Protection scheme: Financial Services Compensation Scheme (FSCS)

Click here to learn more about the Leeds Building Society Limited Issue Online Access ISA.



Swansea Building Society Instant Access Savings ISA

This Instant Access ISA is aimed at people aged 18 and over who are looking to deposit money that they have immediate access to. An account can be created for as little as £1. You can then deposit as much as you wish and earn interest on it. Up to £1 million is the maximum amount which can be held across all Society savings accounts.

Interest rate: 4.25% (Annual Equivalent Rate)

Minimum balance: £1 to open an account

Protection scheme: Financial Services Compensation Scheme (FSCS)

Click here to learn more about the Swansea Building Society Instant Access Savings ISA.



Halifax ISA Bonus Saver

Though you can easily access the money in this Halifax Bonus Saver account, you’ll have a much higher interest rate (4.10%) if you make three or fewer withdrawals in the first 12 months after opening it. This interest rate drops to 1.35% after four or more withdrawals are made.

An account can be opened after a minimum deposit of just £1 or more.

Interest rate: 4.10% (Annual Equivalent Rate)

Minimum balance: £1 to open an account

Protection scheme: Financial Services Compensation Scheme (FSCS)

Click here to learn more about the Halifax ISA Bonus Saver.



Notice Cash ISAs

A Notice ISA is a form of savings account that requires you to provide notice if you wish to make a withdrawal. Between 30 to 120 days is a fairly common amount of time. In return for giving notice, you’ll usually get a higher interest rate.

Some Notice ISAs place limitations on the number of withdrawals you can make within a single year as well.

ISA Name Provider Interest Rate Minimum Balance Required Protected By the FSCS? Notice Period
45 Day Notice ISA Furness Building Society 3.80% £1,000 Yes 45 days
180 Day Community Saver Mansfield Building Society 4.60% £1 Yes 180 days
Notice Cash ISA The Marsden Branch Up to 4.15% £1,000 Yes 120 days

Furness Building Society 45 Day Notice ISA

This Notice ISA from Furness Building Society is ideal for over 60s who know when they’ll need to access their savings. At 45 days, the notice period is shorter than many other ISAs of this type as well.

This 45-day notice period allows you to make withdrawals and deposits within the same tax year, without it affecting your current year’s ISA allowance.

Interest rate: 3.80% (Annual Equivalent Rate)

Minimum opening balance: £1,000 to open an account

Protection scheme: Financial Services Compensation Scheme (FSCS)

Notice Period: 45 days

Click here to learn more about the Furness Building Society 45 Day Notice ISA.



Mansfield Building Society 180 Day Community Saver

Here, withdrawals are subject to 180 days' written notice. Similarly, transferring savings to another account requires 180 days' notice. You’re able to withdraw up to £500 a day. This account is aimed at people living in Nottinghamshire, Derbyshire and South Yorkshire, or existing members.

Interest rate: 4.60% (Annual Equivalent Rate)

Minimum opening balance: £1 to open an account

Protection scheme: Financial Services Compensation Scheme (FSCS)

Notice Period: 180 days

Click here to learn more about the Mansfield Building Society 180 Day Notice Cash ISA.



The Marsden Branch Cash ISA

The Marsden Notice ISA has a notice period of 120 days when making withdrawals. Where deposits are concerned, you can either make several smaller payments, or pay in a lump sum.

Interest rate: Up to 4.15% (Annual Equivalent Rate)

Minimum opening balance: £1,000 to open an account

Protection scheme: Financial Services Compensation Scheme (FSCS)

Notice Period: 120 days

Click here to learn more about The Marsden Branch Cash ISA.



Fixed-Rate Cash ISAs

Through a fixed-rate ISA, your money is locked away for a predetermined period. The longer the amount of time, the higher the interest rate usually is. Common fixed-rate periods include one, two, three and five years.

ISA Name Provider Interest Rate Length of Term Minimum Balance Required Protected By the FSCS?
2 Year Fixed Rate Cash ISA Paragon 4.20% 24 months £500 Yes
3 Year Fixed Rate Cash ISA Paragon 3.95% 36 months £1,000 Yes
1 Year Fixed Rate Cash ISA Leeds Building Society 4.40% 12 months £100 Yes
2 Year Fixed Rate Cash ISA Leeds Building Society 4.20% 24 months £100 Yes
1 Year Fixed Rate Cash ISA Santander 4.35% 12 months £500 Yes
2 Years Fixed Rate Cash ISA Santander 4.25% 24 months £500 Yes
ISA Saver Fixed Halifax Between 3.20% and 4.15% One, two or five years £500 Yes
1 Year Fixed Rate ISA Nationwide Between 4.00% and 4.25% 12 months £1 Yes

Paragon 2 Year Fixed Rate Cash ISA

This Fixed Rate Cash ISA from Paragon can be managed online or by post. You can also spread your tax-free ISA allowance across multiple Paragon ISAs. Here, the interest rate is fixed for 24 months, with funds being kept safe for this period. You can make an early withdrawal, but you’ll lose savings in the form of interest if you do so.

Interest rate: 4.20% (Annual Equivalent Rate)

Length of term: 24 months

Minimum balance: £500 to open an account

Protection scheme: Financial Services Compensation Scheme (FSCS)

Click here to learn more about the Paragon 2 Year Fixed Rate Cash ISA.



Paragon 3 Year Fixed Rate Cash ISA

This 3 Year Fixed Rate ISA from Paragon works in largely the same way as the one above. This ISA can also be managed online or by post. Having an interest rate set at the same amount - 3.95% - for 36 months provides added assurance about how much you’ll be able to save.

Interest rate: 3.95% (Annual Equivalent Rate)

Length of term: 36 months

Minimum balance: £1,000 to open an account

Protection scheme: Financial Services Compensation Scheme (FSCS)

Click here to learn more about the Paragon 3 Year Fixed Rate Cash ISA.



Leeds Building Society 1 Year Fixed Rate Cash ISA

This Fixed Rate Cash ISA from the Leeds Building Society has a 5.50% interest rate, and this rate is fixed for 12 months after opening an account.

Interest rate: 4.40% (Annual Equivalent Rate)

Length of term: 12 months

Minimum balance: £100 to open an account

Protection scheme: Financial Services Compensation Scheme (FSCS)

Click here to learn more about the Leeds Building Society 1 Year Fixed Rate Cash ISA.



Leeds Building Society 2 Year Fixed Rate Cash ISA

The terms of this Fixed Rate ISA are broadly the same as the one above. The main difference is that the term lasts for 24 months rather than 12. The interest rate is also slightly lower, at 4.20%.

Interest rate: 4.20% (Annual Equivalent Rate)

Length of term: 24 months

Minimum balance: £100 to open an account

Protection scheme: Financial Services Compensation Scheme (FSCS)

Click here to learn more about the Leeds Building Society 2 Year Fixed Rate Cash ISA.



Santander 1 Year Fixed Rate Cash ISA

Santander’s 1 Year Fixed Rate Cash ISA is ideally suited to those over 60 looking to earn interest on their savings which they’re happy not having access to for 12 months. This ISA is aimed at people in the UK aged 16 and over who have £500 or more to initially open an account.

Interest rate: 4.35% (Annual Equivalent Rate)

Length of term: 12 months

Minimum balance: £500 to open an account

Protection scheme: Financial Services Compensation Scheme (FSCS)

Click here to learn more about the Santander 1 Year Fixed Rate Cash ISA.



Santander 2 Years Fixed Rate Cash ISA

Again, this is a similar ISA to the other two from Santander. This ISA has the longest fixed-rate period (24 months). You can make withdrawals by closing the account early, but you’ll be charged the equivalent of 120 days’ interest by doing so.

Interest rate: 4.25% (Annual Equivalent Rate)

Length of term: 24 months

Minimum balance: £500 to open an account

Protection scheme: Financial Services Compensation Scheme (FSCS)

Click here to learn more about the Santander 2 Years Fixed Rate Cash ISA.



Halifax ISA Saver Fixed

The ISA Saver from Halifax can be set at a fixed rate for one, two or five years. The one-year term has a 4.15% interest rate, the two-year term has a 4.00% interest rate and the five-year term has a 3.20% interest rate.

Though this final interest rate is slightly lower, you’ll have the peace of mind that it won’t change for several years. Interest can be paid out annually or monthly.

Interest rate: Between 3.20% and 4.15% (Annual Equivalent Rate), depending on the length of your term

Length of term: One, two or five years

Minimum balance: £500 to open an account

Protection scheme: Financial Services Compensation Scheme (FSCS)

Click here to learn more about the Halifax ISA Saver Fixed.



Nationwide Fixed Rate ISA

Nationwide’s Fixed Rate ISA has a 5.50% interest rate. This rate will remain the same until the ISA matures into an instant access cash ISA after 12 months. You can open this account by depositing just £1, and you can deposit up to £20,000 (this is the annual ISA allowance for 2023/2024).

Interest rate: Between 4.00% and 4.25% (Annual Equivalent Rate)

Length of term: 12 months

Minimum balance: £1 to open an account

Protection scheme: Financial Services Compensation Scheme (FSCS)

Click here to learn more about the Nationwide Fixed Rate ISA.



Regular Saver ISAs

Regular Saver ISAs allow you to save money in a tax-free savings account through monthly deposits.

Terms vary from account to account, but often, you’ll need to deposit a certain amount of money into your account each month to earn interest.

ISA Name Provider Interest Rate Minimum and Maximum Monthly Investment Protected By the FSCS?
Regular Monthly Saver Swansea Building Society 4.75% £25 to £500 Yes
Regular Saver ISA Saffron Building Society 5.25% £10 to £1,650 (£1,850 in Month One) Yes
Regular Saver ISA Vernon Building Society 4.15% £25 to £500 Yes

Swansea Building Society Regular Monthly Saver

This Regular Saver ISA from the Swansea Building Society allows you to get into the habit of making regular deposits, building up your savings over time as a result. This ISA has a maximum monthly investment of £500 and a minimum of £25.

Interest rate: 4.75% (Annual Equivalent Rate)

Minimum and maximum monthly investment: £25 to £500

Protection scheme: Financial Services Compensation Scheme (FSCS)

Click here to learn more about the Swansea Building Society Regular Monthly Saver.



Saffron Building Society Regular Saver ISA

At 5.25%, this Regular Saver ISA from the Saffron Building Society also has a high interest rate. Interest is calculated each day on the available money in your account, and is paid 12 months after the account was opened.

This account is exclusively for members of the Saffron Building Society.

Interest rate: 5.25% (Annual Equivalent Rate)

Minimum and maximum monthly investment: £1,850 is the maximum investment for month one and £1,650 is the maximum investment for months two to twelve after an initial investment of at least £10

Protection scheme: Financial Services Compensation Scheme (FSCS)

Click here to learn more about the Saffron Building Society 12 Month Members’ Regular Saver.



Vernon Building Society Regular Saver ISA

Using Vernon Building Society’s Regular Saver ISA, you can deposit between £25 and £500 each month - a popular deposit range for people aged 60 and over. The most you can contribute to an ISA for 2023/24 is £20,000. You can open one of these accounts online or via post.

Customers must live within a 25-mile radius of Stockport to open one of these accounts.

Interest rate: 4.15% (Annual Equivalent Rate)

Minimum and maximum monthly investment: £25 to £500

Protection scheme: Financial Services Compensation Scheme (FSCS)

Click here to learn more about the Vernon Building Society Regular Saver ISA.





Martin Lewis’ Advice on ISA Rates

According to financial expert Martin Lewis, cash ISAs are best for people who already pay tax on savings interest and are happy to put their money away without the need to access it. If you’re near the limit where you’ll earn enough interest to pay tax on interest, putting money into a cash ISA could also protect you from paying extra tax in the future.

Martin Lewis has recommended a number of cash ISAs across several different providers, many of which are suitable for over 60s.

For example, he recommends the Newcastle Double Access ISA which can be opened with a minimum deposit of just £1 and has an interest rate of 4.65% (including a bonus). This interest is paid on the annual anniversary of when the account was opened.





Pros and Cons of Cash ISAs for Over 60s

Pros

  • For the 2023/24 tax year, you can save up to £20,000 tax-free in ISAs. You also aren’t required to declare ISAs on your tax return

  • Money in a cash ISA is protected up to £85,000 by the Financial Services Compensation Scheme

  • They’re easy to set up and simple to manage

  • They’re usually very cheap to set up and don’t come with any additional charges

  • There are lots of different types of ISAs to pick from, making it much easier to find the perfect choice, depending on your saving goals and how long you’re able to go without needing to access your money

  • There aren’t any upper age limits, making cash ISAs ideal for people aged 60 and over

  • Some accounts - Easy Access and Instant Access ISAs - allow you to make withdrawals as and when you want

  • You can easily transfer between providers. Provided your ISA isn’t fixed for a certain period, you can move your ISA to an account with a better interest rate, without losing your tax-free allowance

  • If you were to pass away, ISA savings can often be passed onto your spouse through an ‘inherited ISA allowance’

Cons

  • Interest rates are often lower than through Savings Accounts

  • If inflation is higher than interest rates, your money will lose value when in an ISA

  • To access higher interest rates, you often need to work within strict rules, including when you can pay money in and take money out of your account

  • If you don’t use your annual allowance, you’ll lose it, meaning this allowance can’t be carried forward. You’re unable to carry over anything left from your previous year’s allowance

  • You can’t have a joint ISA account. Instead, ISAs are only available to individuals

  • ISAs also can’t be held by a legal entity such as a trust




Cash ISA Alternatives For Over 60s

There’s a range of other savings accounts for over 60s to choose from. The best option depends on personal circumstances, finances and saving goals.


The main types of savings accounts include:

Learn more about the best savings accounts for over 60s in our dedicated article!






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Frequently Asked Questions

What are the best investment options for over 60s?

Many of the best investment options for over 60s are different forms of savings accounts. These include instant access, easy access, notice savings, regular savings and fixed-rate savings accounts. Cash ISAs and current accounts are also popular investment options for over 60s.

Is an ISA better than a savings account?

The benefit of an ISA over a savings account is that you don’t have to worry about your interest exceeding the personal savings allowance. This interest will always remain tax-free, making ISAs a more appealing option for those working towards a long-term savings goal.

However, if you’re looking for an account that lets you frequently withdraw and deposit money, a savings account may be the better option.

When should you not use an ISA?

During times of low interest, interest rates aren’t able to keep up with inflation. If the amount of interest you earn is less than the rate of inflation, you could potentially lose money by keeping your savings in an ISA.

How many ISAs can you have?

Provided you meet the eligibility criteria for each, you’re able to have as many ISAs as you wish. However, you’re only allowed to pay into one of each form of ISA in a single year. For example, if you have two Easy Access Cash ISAs, you can only pay into one of these each tax year.

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