Interest rates on cash ISAs are finally starting to increase after years of low rates, according to a report by data provider Moneyfacts.
The report showed that average rates for instant access ISAs went up from 0.68% in December 2017 to 0.78% in February 2018.
Long-term fixed-rate ISAs also increased from 1.38% to 1.46% over the same time. Over the last decade, low interest rates have seen ISAs lose popularity among savers. In the 2016/17 tax year, the number of cash ISAs that were opened decreased by 16% on the previous year.
However, it’s possible that rate rises could improve prospects for ISA savers in the future.
While the Bank of England held the interest rate at 0.5% in February 2018, it hinted that rates may need to rise “somewhat earlier and by a somewhat greater extent” than previously anticipated.
Charlotte Nelson, finance expert at Moneyfacts, said:
ISA savers will be disappointed to find that while we have seen an upturn in rates, ISA returns have yet to recover from the base rate cut in 2016.
Yet with multiple base rate rises now on the horizon, it is important that savers think about using their ISA allowance.
You might be interested in...
16 Sep 2026
Financial planning is about more than investments. Learn how business owners and professionals can gain clarity, build confidence and make better decisions about their future.
Watch now
Beyond the Books, Episode 9
11 Sep 2026
Many businesses dismiss their innovation as "just part of the day job". But for tax purposes, innovation often hides in everyday problem-solving and technical improvements. Discover what really qualifies as R&D.
Learn more
What really counts as innovation for tax purposes?
11 Sep 2026
Could your business operate without you? Join our webinar in October to learn how to reduce owner dependence, strengthen leadership and build long-term business resilience.
Learn more
Webinar: Building a Business That Doesn’t Depend on You
02 Sep 2026
For international groups, uncertainty around audit requirements can create unnecessary pressure, duplicated work and reporting delays. This article explains the difference between UK statutory audits and group reporting.
Learn more
UK statutory audit vs group reporting: what international groups need to know
01 Sep 2026
Why resilient SME leaders are turning to scenario planning to stay agile, reduce risk and make decisions with confidence.
Learn more
The New Business Strategy Isn’t One Plan – It’s Multiple Futures
26 Aug 2026
From 30 Sept 2026, the charity audit threshold rises to £1.5m. Learn what this means for your charity and whether you still need an audit.
Learn more
Charity audit thresholds are increasing: should your charity still have an audit?