For those seeking higher returns on their savings heading into the new year, Atom Bank is offering a market-leading 4.25% interest rate on its easy access Cash ISA. 

Currently, people can save up to £20,000 in a Cash ISA tax-free if they’re 18 or over. From April 2027, the annual allowance will fall to £12,000 for those aged under 65. People who are 65 and over will retain the £20,000 Cash ISA allowance. There are different types of Cash ISAs available, such as easy access, where you can withdraw funds whenever you want, or a fixed rate, where you receive a guaranteed rate but are required to lock your cash in for a set period. Atom Bank’s Easy Access Cash ISA offers a 4.25% interest rate that “lets you grow your money without paying tax on the interest you earn”. The bank says the ISA is “great for long and short-term savings with easy access when you need it”.

It’s not a flexible ISA, which means that if you withdraw money, you can’t replace it without using more of your ISA allowance for the year. Atom doesn’t accept transfers in from other ISAs. You can, however, transfer money from your Atom Cash ISA to another provider, but you must move the full balance.

This comes after savers were urged to act fast and lock in higher-paying cash ISA and savings deals, with interest rates expected to head south.

The Bank of England cut the base rate from 4% to 3.75% earlier this month, a move that experts have warned will quickly feed through to lower savings rates.

Rates have slipped since the 0.25% cut in August 2025, piling pressure on savers to move quickly if they want to protect the return on their hard-earned cash.

While a base rate cut is welcome news for mortgage holders and the wider economy, it is often bad news for savers – particularly those who have left money languishing in poor-paying accounts.

Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Savers pay the price of cuts to the base rate, and the reduction in August has been no exception.

“Variable rates tend to get hit the hardest by base rate cuts, but fixed rates also come down too as providers catch up to their peers. Taking time to shop around for the best rates and switching is essential to get any cash working harder.”