Isa Account Interest Calculator
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Reviewed by Calculator Editorial Team
Calculate your ISA account interest with our free online calculator. Learn how ISA interest rates work and maximize your returns.
How to Use This Calculator
Our ISA Account Interest Calculator helps you estimate how much interest you'll earn on your ISA investments. Simply enter your details and click "Calculate" to see your potential returns.
This calculator uses the current tax-free interest rate for ISAs in the UK. The actual amount you earn may vary based on your specific investment choices and market conditions.
Key Features
- Calculate interest for Cash ISAs and Stocks and Shares ISAs
- View your earnings over time with a chart
- Understand how compound interest works with ISAs
- Compare different investment periods
How ISA Interest Works
Individual Savings Accounts (ISAs) are tax-free savings accounts in the UK. There are two main types:
- Cash ISAs: For savings accounts, bonds, and similar low-risk investments
- Stocks and Shares ISAs: For investments in the stock market
The interest rate for ISAs is set by the government and is currently [current rate]% for Cash ISAs and [current rate]% for Stocks and Shares ISAs. The maximum annual allowance is £20,000 per tax year.
Compound Interest
ISA interest can be compounded annually, meaning your earnings earn interest on top of your original investment. This can significantly increase your returns over time.
Worked Example
Let's say you invest £5,000 in a Cash ISA with a 2% interest rate for 5 years.
| Year | Starting Balance | Interest Earned | Ending Balance |
|---|---|---|---|
| 1 | £5,000.00 | £100.00 | £5,100.00 |
| 2 | £5,100.00 | £102.00 | £5,202.00 |
| 3 | £5,202.00 | £104.04 | £5,306.04 |
| 4 | £5,306.04 | £106.12 | £5,412.16 |
| 5 | £5,412.16 | £108.24 | £5,520.40 |
After 5 years, you would have earned £520.40 in interest, bringing your total to £5,520.40.
Frequently Asked Questions
What is the current ISA interest rate?
The current ISA interest rate varies by provider. Cash ISAs typically offer around 1-3%, while Stocks and Shares ISAs may offer higher rates depending on market conditions. Always check with your provider for the most up-to-date rates.
How much can I put into an ISA?
The annual ISA allowance is £20,000 per tax year. You can split this between Cash ISAs and Stocks and Shares ISAs as you prefer.
Are ISA interest rates taxed?
No, interest earned on ISAs is tax-free. This makes them an attractive option for saving and investing.
Can I transfer money between different types of ISAs?
Yes, you can transfer money between Cash ISAs and Stocks and Shares ISAs within the same tax year, as long as you don't exceed the £20,000 annual allowance.