If you’re over 60 and waiting for the best ISA rates in 2025, Martin Lewis’s insights must have come to your attention. The interest rate and ISA rule fluctuations make thorough, up-to-date guidance imperative.
In this validated overview, we will provide the ISA’s best rates for the over 60s in 2025 with a comparison from leading providers alongside some recent rule changes that might impact your savings.
Key Changes for ISAs in 2025 – For Over 60s
Now, let’s clarify the best ISA rates and for 2025 let’s look at the most recent ISA rules:
- ✅ The tax-free savings limit has not increased since 2024 and remains at £20,000, – ISA allowance untouched.
- ✅ Some providers allow withdrawals and re-deposits without any impact on flexi-isa loss so these still exist.
- ✅ Cash ISAs no longer have an age limit since 2024 you can open one at any age.
- ✅ LISA rules stay as is, so if you’re over 60 you cant initiate a LISA (deadline 40)
The Best Cash ISA Rates For Over 60s In 2025
Here are the highest Cash ISA rates as of early 2025, confirmed with financial watchdogs and comparison websites:
Best Easy Access Cash ISA
- 🔹 Zopa Smart ISA – 4.50% AER (variable)
- Withdrawal Restrictions: Instant
- No Withdrawal Penalties
- Protected by FSCS
- 🔹Coventry Building Society– 4.35% AER (variable)
- Partial Accessibility:
- Good Customer Service
Best Fixed-Rate Cash ISA
- Metro Bank – 5.20% AER (2-year fixed)
- Benefits: A higher rate for locking money away
- Restrictions: Early withdrawal penalties apply
- Close Brothers – 5.05% AER (1-year fixed)
- Competitive short-term option
Did Martin Lewis Recommend These ISAs?
Martin Lewis has added new updates on his site about recommended ISAs and currently, in 2025, his pick was near the ones mentioned above. However, make sure to visit the website because rates tend to shift often.
Martin’s Key Guidance for 60+:
- Look for cheaper options on FCA-approved websites
- Keep an eye out for ‘teaser rates’ that fall after one year.
- Think about dividing your savings between easy access and fixed ISAs.
Should Over 60s Choose a Cash ISA or a Pension?
If you’re still considering where to invest your money:
- Cash ISAs = Safe and tax-free, but provide lower returns.
- Pension Drawdown = Potential higher growth but comes with market risk.
- Annuities = Guaranteed income, but rates might be low in 2025.
We recommend speaking with a financial advisor if you’re not certain about what to choose.
Best ISA for Over 60s in 2025
Most over 60s will benefit most from a high-rate, easy-access Cash ISA (Zopa or Coventry BS), as these provide the best combination of flexibility and returns. If you won’t need to access the funds anytime soon then a fixed-rate ISA (Metro Bank or Close Brothers) pays out better interest.
For a detailed breakdown of this year’s top investment platforms, read our Best Stocks & Shares ISAs in 2025 – Top Platforms Compared, Cash ISAs Overview and The Best Accounts and Rates and Lifetime ISA (LISA): Buy Your First Home or for Retirement– we analyze fees, investment options, and exclusive features to help you choose the perfect tax-efficient account for your portfolio.
