Best Cash ISA Rates for Over 60s

Explore the seven best cash ISAs available for UK citizens over 60.

Updated: December 1, 2023
Matt Crabtree

Written By

Matt Crabtree

 

Are you a UK citizen over 60 looking for an easy way to save money efficiently? Aside from regular savings accounts and fixed-rate savings accounts, some of the best cash ISAs can give your savings a little boost.

Each ISA has unique terms, eligibility criteria, and specific cash ISA rates that can contribute to your ability to save your funds.

If you have been trying to discover which ISA rates are the best or find an account to begin saving, this article can help. Stay with us until the end to learn which ISA rates are the most favourable and a list of the top cash ISA accounts for UK citizens over 60.

ServiceScoreRegister
1. Virgin Money★★★★★Click Here
2. Vernon Building Society★★★★★Click Here
3. Paragon Bank★★★★★Click Here
4. Halifax★★★★Click Here
5. Cynergy Bank★★★★Click Here
6. Marcus by Goldman Sachs★★★★Click Here
7. Skipton Building Society★★★★Click Here

What Are Cash ISA Rates for Those Over 60?

If you've been researching cash ISA rates for over 60s, you'll have seen that they are tax-free interest rate earnings that come with ISA accounts. In other words, with your individual savings account, you can skip paying income tax on the savings interest you earn; you can choose an ISA to gain tax-free interest benefits, including capital gains tax exclusions.

You may have also seen that different ISA accounts exist. For instance, stocks and shares ISA accounts, lifetime ISA options, notice cash ISAs, innovative finance, and cash ISA accounts are all examples you may choose. 

How Do Cash ISA Accounts for Over 60s Work?

Although cash ISAs are similar to savings accounts, you'll see that they work slightly differently.

For most cash ISA savings accounts, the amount you may deposit yearly caps at £20,000. You can earn interest on this savings deposit each tax year. A few ISA accounts are more flexible than others, allowing you to access your funds at will. Other ISA accounts will lock your savings over a specific timeframe.

It's possible to transfer funds from an old ISA to your new account but to avoid losing tax-free benefits, check the regulations of the account and follow the specifications.

What Are the Features of Cash ISAs for Those Over 60?

Cash ISAs for people over 60 have a range of features that make saving funds easier.

Here are the main features to consider when selecting this account type.

  • Interest rates: Your cash ISA might offer you high-interest rates, especially if you intend to keep your funds locked in the account. If you're keeping your funds in the account for a long time, you can expect to yield high interest.
  • No large minimum deposit: You won't need to make a large minimum deposit for your interest earnings. You can open your account with a small amount of savings for many of these accounts.
  • Secure funds: Since the Financial Services Compensation Scheme (FSCS) protects your funds, you have greater security no matter if the financial institution you save with fails.
  • Eligibility criteria: You will have to meet the eligibility criteria to apply for one of these accounts. Typically, criteria include being a UK resident, having a national insurance number, and being over 16 or 18, depending on the account provider's terms.
  • Variable rate: Many of these accounts offer variable interest rates. With a variable rate, the amount you earn on your savings can fluctuate. Your account provider will inform you when the rate increases or decreases. Each account will vary in terms of the notice you will receive.

Best Cash ISA for Over 60s Pros and Cons

A few advantages and disadvantages apply to cash ISAs for those over 60.

Check the lists in this section to learn which pros and cons to weigh when finding accounts to save efficiently.

Pros

✔️ Tax-free benefits — You'll reap the tax-free benefits of saving your funds in an ISA for over 60s. This advantage means that no matter your interest, you'll not need to pay tax on these gains.

✔️ Transferrable accounts — If you're transferring from one cash ISA to another new one, you won't face any restrictions. Swapping from one account to another is possible, so you can gain the advantages of the perks of a new account.

✔️ Various options are available — From easy access cash ISAs and innovative finance ISA options to fixed rate cash ISAs, many options are available. You can select an option that perfectly aligns with your financial circumstances.

Cons

❌️ Capped deposits — When you deposit money, remember that the maximum amount you can invest each year is £20,000. Any amounts higher than this will require you to open a new account.

❌️ Inflation can hinder saving value — In times of high inflation, you may notice that the value of your money declines in your account.

7 Best Cash ISA Rates — Reviews

With the features, definition, advantages and disadvantages of cash ISA rates and accounts covered, we will now closely examine the seven best cash ISA rates and accounts for UK residents over 60.

Here are the best options you should consider.

1. Virgin Money

Virgin Money offers a one-year fixed-rate cash ISA with an interest rate of 5.85%. As with most ISAs, this account offers tax-free interest. This account allows you to consolidate your existing ISAs using their transfer service. You can deposit £20,000 into the account during the current same tax year but complete limitless ISA transfers.

Eligibility for this account requires you to have a Virgin Money current account, an account with Clydesdale Bank or an account with Yorkshire Bank.

The Virgin Money account providers will never change the interest rate. It is a fixed amount that stays the same, so it will not change until the fixed-rate period expires. With their interest rate, if you deposit £1,000, after 12 months, you will earn £58.50, bringing your savings to £1,058.50.

Opening this account is possible in branches or online, but you should be 16 years old and a UK resident to be eligible. You can deposit money via electronic bank transfer, cheque, cash in stores or from an account with Virgin Money.

2. Vernon Building Society

With Vernon Building Society, you have a range of cash ISA accounts. They offer fixed rate ISAs, regular saver ISAs and easy access cash ISAs.

While their fixed rate cash ISAs offer an interest rate of 4.90%, their regular saver ISA offers 4.15%, and their easy access cash ISA offers 3.45%. You'll see that these accounts offer tax-free savings perks, so saving funds and watching your money grow is easy.

The fixed-rate ISA from Vernon Building Society allows you to save £20,000 — the highest limit allowed for ISAs. You can make transfers from other cash ISAs with this account. 

The regular saver ISA savings account allows you to save between £25 and £1,666 monthly, but you can't transfer funds from other ISA accounts. You'll be able to save £20,000, the maximum amount each year, with the easy access cash ISA and transfer funds from other ISA accounts.

A minimum opening balance of £5,000 applies to the fixed rate ISA. With the interest rates they offer, if you make a £5,000 deposit, the estimated value after 12 months would be £5,288.66, meaning you can earn £288.66 if you don't withdraw money from the account.

The regular saver ISA requires a minimum opening balance of £25. If you deposit £100 monthly, your estimated balance would be £1,226.91, including interest earnings and bonus.

3. Paragon Bank

The Triple Access Cash ISA from Paragon Bank offers an interest rate of 4.25%. It is a variable interest rate that can increase and decrease, so your provider will notify you of any fluctuations. For instance, when the interest rate goes down, you will be notified 14 days before this decline.

Tax-free savings are possible, and you only need to deposit £1 as an opening balance. A maximum account balance of £500,000 is possible with this account provider.

This account is a flexible option, though it discourages withdrawals with an interest penalty. You can make three withdrawals within 12 months, and your personal savings allowance is not affected. If you make a fourth withdrawal, your interest rate drops to 1.50%.

With Paragon Bank's Cash ISA interest rates and zero withdrawals, your deposit of £1,000 can be worth approximately £1,042.50 after 12 months. 

To be eligible for this cash ISA account, you should be 18 or over and a UK resident to comply with tax regulations. You can use electronic bank transfers, cheques, or your Paragon account to make deposits. No limits cap your deposits, but it's important to acknowledge your annual ISA allowance

4. Halifax

When you select the Halifax ISA Bonus Saver, you can earn interest at a rate of 4.20% when you make fewer than three withdrawals over 12 months. If you exceed this number of withdrawals, your interest drops to 1.35%.

Since the interest rate is variable, Halifax can change the interest rate. They will let you know if there are any changes scheduled.

With Halifax's interest rates, and without making any withdrawals, you can earn approximately £41.98 on a deposit of £1,000. This future balance will depend on the interest rates and the amount of money you deposit.

It's possible to open this account by depositing just £1 and pay in £20,000 during the current tax year. If you need to transfer cash to this account, Halifax offers an ISA transfer service. This service is important because you can only save your funds in one ISA during the tax year.

To open an account, you can easily apply online, via the Halifax app, in a branch or over the phone. Eligibility requirements state that you should be 16 or over, a UK resident, and have a national insurance number. 

5. Cynergy Bank

With the online ISA from Cynergy Bank, you can receive an interest rate of 5.07%. These earnings are tax-free, and you can open this account with just £1. Remember that the interest rate is variable and can, therefore, change.

With favourable interest hikes, you will receive an instant notification from Cynergy Bank; with lower interest rates, you'll receive notice 14 days in advance — these notifications only apply to balances over £100.

With the interest rate Cynergy Bank offers, on a deposit of £1,000, your estimated balance will be approximately £1,050.70 after 12 months. This is just an estimation, and your circumstances and interest rate changes can affect the amount you earn.

To be eligible for Cynergy Bank's online ISA, you must have a national insurance number and be over 18.

The maximum investment limit will be £20,000. Any deposits you make must stick within the limit of your annual ISA subscription terms; you can make these electronically, and cheque, cash and debit card deposits are not possible.

If you want to withdraw money, you can do so without notice. However, if you want to replace the money you withdraw, this will be added and accumulate within your annual subscription allowance.

6. Marcus by Goldman Sachs

The interest rate you can receive with Marcus by Goldman Sachs is 4.75%, tax-free earnings with the bonus included. Non-bonus rates are 4.24%, but this is a variable rate.

Therefore, this account provider can change your interest rate. This account provider will calculate interest daily and pay it into your account monthly. You can begin saving with just £1.

It isn't possible to transfer in other ISAs you hold, and though you can make cash withdrawals, any money you take out is not replaceable from your tax-free allowance limit.

This rule means replacing the money still adds up in terms of your allowance. This account provider follows the government-set limit for ISA contributions, which is £20,000, so you cannot exceed this limit.

After 12 months with the interest rates offered by Marcus by Goldman Sachs, your projected balance after a £1,000 deposit would be approximately £1,047.50 with the bonus rate.

Opening an account is simple; you can complete your application online and manage this through the account provider's online platform. You must meet the eligibility criteria, such as being 18 or over, being a UK tax resident, and having a national insurance number.

7. Skipton Building Society

Skipton Building Society offers a few ISA options, including fixed rate, easy access, and two-year fixed rate cash ISA. Their fixed rate cash ISA makes tax-free saving easy thanks to the unchanging, fixed rate of interest, which is set at 5.25%.

The easy access ISA is slightly more flexible, offering flexible withdrawals and a 3.90% variable interest rate. Choose the two-year fixed rate cash ISA for a 5% fixed interest rate.

Skipton also offers an 18-month fixed rate cash ISA with a 5.40% interest rate, a bonus cash ISA saver account with a 5% variable rate, and various other ISA accounts to help you choose the ideal option.

This account provider's one-year fixed rate cash ISA requires you to make a £500 deposit and no withdrawals, while their easy access cash ISA allows you to save from £1, and their two-year fixed rate account expects you to deposit at least £500.

You can transfer funds from an ISA account from previous or current tax years to Skipton Building Society's two-year fixed rate and one-year accounts.

Best Cash ISA Rates for Over 60s: The Verdict

Favourable cash ISA rates can help you save funds faster and more efficiently. The best ISA accounts will offer these rates, so it's just a case of comparing several options. Starting with this list is a good idea; some of the best options include Vernon Building Society and Virgin Money.

However, by looking more closely at your options, you can find the ideal account that helps keep your savings growing upward. Consider the conditions, terms, and rules that come with potential ISAs for over 60s, and don't forget the all-important ISA rates to find the ideal option.

Related Guides:

7 Best Cash ISA Rates for UK Citizens Over 60: FAQs

Are Cash ISA Rates Likely to Go Up?

Where Can I Get 5% on My Savings UK?

What Is the Nationwide Cash ISA Rate?

Related Articles

Best Cash ISAs
Are you looking to make the most of your savings? There are ways you can make the...
Should You Invest In Fractional Shares In Your ISA?
Whether or not you paid much attention to the announcements in the UK government's...
Best Fixed Rate Cash ISAs for UK Savers
If you have a lump sum to invest that you don't need to access any time soon, a...
Best Notice Savings Accounts
Have you been looking for an account you can use to accumulate savings and manage...

Mentioned Banks

About Paragon Bank Paragon Banking Group is a UK-based specialist finance provider, headquartered in Solihull and founded in 1985. Originally named National Home Loans Corporation,...
Learn More
About Virgin Money Virgin Money is a bank and financial services company based in the UK. Originally launched as Virgin Direct Personal Financial Services in 1995, its second incarnation...
Learn More
Offering savings accounts that encourage you to ‘put the interest back into your savings’, Marcus is a trading name of Goldman Sachs. Though you might not have heard of Marcus, you’ll...
Learn More
About Halifax Formerly known as Halifax Building Society, Halifax is a British bank. It is named after the town in West Yorkshire where it was founded in 1853 as a building...
Learn More
About The Skipton Building Society was created in 1853. It is the UK's 4th largest building society and has over 1 million members and 100 branches. Its most notable subsidiary is the...
Learn More
About Clydesdale Bank Clydesdale Bank is a Scottish commercial bank founded in Glasgow in 1838. Independent until 1920 when it was purchased by Midland Bank, it is the smallest...
Learn More