What type of ISA should I get?
With so many types of savings accounts available, it can be hard to know where to start. Thinking about how soon you’ll need your money and how much flexibility you want could help – one option worth considering is an ISA.
Published:31 March 2026
Cash ISAs are usually offered by banks or building societies. There are a few different types, from instant access ISAs to Junior ISAs, they let you save money tax-free. This doesn’t necessarily mean you’ll pay tax on the interest earned in a regular savings account, it depends if the amount of interest you earn exceeds your Personal Savings Allowance in the tax year.
While there’s no limit on how much you can hold in an ISA overall, there is a limit on how much you can save each tax year. The amount you can save each tax year is known as your ISA limit. You can pay in up to the current limit of £20,000 across all ‘adult’ ISAs you may have combined. In addition, you can save up to £9,000 across all Junior ISAs held in your child’s name.
Like other savings accounts, there are usually different types of Cash ISAs available. These can include: instant access, limited access or fixed rate.
What people told us about their ISAs
We asked Cash ISA holders about the type of Cash ISA they hold. The most popular were:
- easy access cash ISA (45%)easy access cash ISA (45%)
- fixed rate cash ISA (39%)fixed rate cash ISA (39%)
- flexible ISA (19%)flexible ISA (19%)
When we asked for their top reasons for choosing a Cash ISA:
- 49% said it’s for tax efficient saving49% said it’s for tax efficient saving
- 37% believed it’s a low risk option37% believed it’s a low risk option
- 30% said safety and security were the main reasons30% said safety and security were the main reasons
Here, we break down the different types of ISAs to help you decide what might work for you.
What are the different types of ISA?
Tesco Bank offers two types of Cash ISA:
- Instant Access Cash ISA – a flexible, tax-free ISA that lets you save while keeping easy access to your money.Instant Access Cash ISA – a flexible, tax-free ISA that lets you save while keeping easy access to your money.
- Fixed Rate Cash ISA – a tax-free ISA with an interest rate that lasts for a set amount of time.Fixed Rate Cash ISA – a tax-free ISA with an interest rate that lasts for a set amount of time.
Both options will allow you to save without having to pay tax on the interest you earn.
Other providers also offer different types of ISAs for different situations. For example:
- Stocks and Shares ISAs – allow you to invest tax-free. Stocks and Shares ISAs – allow you to invest tax-free.
- Lifetime ISAs – include a government bonusLifetime ISAs – include a government bonus.
- Junior ISAs – designed to help save for a child’s futureJunior ISAs – designed to help save for a child’s future.
Instant Access Cash ISA: best for flexible, short-term saving
An Instant Access Cash ISA can be helpful if you want tax-free growth while keeping the freedom to access your money when you need it. It’s a simple, low-effort way to save while staying in control.
Why choose an Instant Access Cash ISA?
- You want control over your savingsYou want control over your savings.
- You might need to take money out unexpectedlyYou might need to take money out unexpectedly.
- You’re saving for something coming up soonYou’re saving for something coming up soon.
- You’re comfortable with a variable interest rateYou’re comfortable with a variable interest rate.
This type of ISA can work well for goals like a holiday, a wedding, or building an emergency fund. It’s useful if you want to save but still need the option to withdraw.
Fixed Rate Cash ISA: best for long-term, steady saving
A Fixed Rate Cash ISA gives you a guaranteed interest rate for a set period of time. It’s ideal if you’re planning ahead and you know you won’t need your money during that period.
Why choose a Fixed Rate Cash ISA?
- You want a secure return and like knowing what to expectYou want a secure return and like knowing what to expect.
- You’re saving for something at least a year awayYou’re saving for something at least a year away.
- You won’t need to withdraw during the fixed term.You won’t need to withdraw during the fixed term.
- You prefer stabilityYou prefer stability.
A Fixed Rate Cash ISA can help with bigger life goals such as saving for a house deposit or planning for the future.
Because the interest rate doesn’t change, you’ll know exactly what you’ll earn by the end of the term.
How to decide which ISA is right for you
Match your ISA to your saving style, timeline, and goals.
When will you need your money?
- Soon – Instant Access Cash ISASoon – Instant Access Cash ISA.
- Not for at least a year – Fixed Rate Cash ISANot for at least a year – Fixed Rate Cash ISA.
Do you want flexibility?
- Yes – Instant Access Cash ISAYes – Instant Access Cash ISA.
- No, I’m happy to lock my money away – Fixed Rate Cash ISANo, I’m happy to lock my money away – Fixed Rate Cash ISA.
Do you want a rate that stays the same?
- Yes – Fixed Rate Cash ISAYes – Fixed Rate Cash ISA.
- I’m fine with a variable rate – Instant Access Cash ISAI’m fine with a variable rate – Instant Access Cash ISA.
What are you saving for?
- Short-term goals – Instant Access Cash ISAShort-term goals – Instant Access Cash ISA.
- Long-term goals – Fixed Rate Cash ISALong-term goals – Fixed Rate Cash ISA.
Quick comparison: Instant Access Cash ISA vs Fixed Rate Cash ISA
|
Feature |
Instant Access Cash ISA |
Fixed Rate Cash ISA |
|---|---|---|
|
Access |
Withdraw anytime |
Locked for fixed term |
|
Interest |
Variable |
Fixed |
|
Best for |
Short-term goals, flexibility |
Long-term goals, stability |
|
Saving style |
Add and withdraw freely |
Deposit and leave untouched |
How to transfer your existing ISA
An ISA transfer is the process of moving your savings from an existing ISA to a new ISA while making sure the transferred funds remain tax-free by using the ISA Transfer Process. This can be done between different types of ISAs, such as from a Cash ISA to a Stocks and Shares ISA, or you can move money between the same type of ISA but with different providers.
Ready to start saving?
Whether you’re saving for a rainy day or preparing for a big life moment, explore the full range of Tesco Bank ISAs.
Research conducted by Opinium Research on behalf of Tesco Bank. Survey of 2,000 UK adults weighted to be nationally representative, with an additional boost to achieve 1,380 UK adults who hold at least one Cash ISA. Fieldwork was undertaken 27 to 30 January 2026.