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Best cash Isa 2018: our favourite variable rate accounts

Harry Brennan
Take note: the higher cash Isa rates are on fixed-term accounts and current accounts - Alamy

Variable rate cash ISAs can be a good option if you want some flexibility in getting access to your money and don't want it locked away for a fixed amount of time. 

However, accounts allow varying degrees of access and the rates can go up and down. Some of the higher paying accounts come with catches such as notice periods and limited withdrawals. 

Here, we name the best paying variable cash Isas available right now.

These accounts allow varying degrees of access and the rates can go up and down. Some of the higher paying accounts come with catches such as notice periods and limited withdrawals. 

Savers can put up to £20,000 in a cash Isa for the 2017-18 tax year.

Don't forget that there are alternative accounts that could pay more on your savings pot, such as high-paying current accounts.

Charter Savings Bank offers the top rate of 1.40pc on deposits over £1,000 but there are access restrictions. Savers must give 95 days notice before making withdrawals or face a penalty charge equivalent to 95 days interest.

Balances below £1,000 will earn just 0.1pc.

The account can be opened online and can be split bewteen a number of Charter Savings Bank's Isas, including fixed and easy-access accounts.

Paragon Bank’s Limited Edition Easy Access Isa pays 1.31pc. Accounts can be open for £1, and you can save up to £100,000.

Interest is paid either monthly or annually, and you can make additional withdrawals and deposits when you want without notice or penalty.

Shawbrook Bank offers a variable-rate cash ISA that pays out 1.30pc.

Accounts can be opened with £1,000 online, and can be operated online and over the phone. Transfers in of other Isas are allowed, an interest is paid annually.

Sainsbury's Bank is easy-access Isa pays 1.21pc. It can be opened online or phone. Transfers in are allowed.

You can open an account with as little as £1. However, you will only earn the advertised interest rate on balances of £500 and over.