The best Cash ISAs you can open with £1

You don’t need to have thousands of pounds to start saving tax-free. Here’s a round-up of the best Cash ISAs you can open for just £1.

The end of the tax year is only a matter of days away, so time is running out to make use of your 2014/15 Cash ISA allowance.

You have until midnight on 5th April to put away up to £15,000 in a Cash ISA tax-free. If you don’t use your allowance by the deadline, you’ll lose it.

For most, a sum of £15,000 is a bit much to raise between now and the deadline. But that’s no excuse to not open an account, as many let you start saving from as little as a £1.

But how do these £1 Cash ISAs compare? Let’s take a look.

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£1 easy access ISAs

With just £1 you can nab a market-leading easy access ISA rate with the National Savings & Investments Direct ISA, which offers a return of 1.50%.

NS&I’s ISA only takes new subscriptions, which isn’t ideal if you have other ISA pots you want to move on, but is perfect for anyone new to Cash ISA savings.

Skipton Building Society also offers the market-leading rate of 1.50%, boosted by a 0.5% bonus which lasts for 12 months. The account also doesn’t allow transfers in.

£1 notice ISAs

There are only four notice Cash ISAs you can open for £1 on the market right now and they’re not very competitive compared to the easy access accounts on offer.

The top notice Cash ISA for those with at least £1 comes from Norwich & Peterborough Building Society. It pays a rate of 1.35% and requires 90 days’ notice for withdrawals. It also allows transfers of ISAs from previous years.

However, you can only open the account in a branch, so you’ll need to have one near you to benefit.

Anyone can get a rate of 1.30% with the Beverley Building Society Cash ISA, which offers the next best deal you can open with just £1. The notice for withdrawals is shorter at 30 days and the account also allows transfers.

These two deals aren’t very competitive compared to the market-leading 120-Day Notice Account from Al Rayan Bank, which pays 2%. However, you’ll need £250 to open it.

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£1 short-term fixed rate ISAs

The top short-term Cash ISA you can open for £1 pays 1.75% and is offered by both the AA and Metro Bank on a two-year fix.

However, this is significantly less than the market leading two-year fix from both Yorkshire Bank and Clydesdale Bank which pays 2.10% on deposits from £2,000.

Those that want their cash locked up for less time can go for a shorter one-year fixed rate deal.

The top one-year deal you can open for £1 comes from Virgin Money which pays 1.65%. However, you can get 0.25% more with the leading deal from Al Rayan Bank, which pays 1.9% on deposits from £1,000.

£1 long-term fixed rate ISAs

Finally, if you’re looking for a long-term fixed rate Cash ISA the best rate you can get from £1 is 2.35% on a five-year fiixed rate deal with Virgin Money. The top deal in this range From State Bank of India pays 2.50% but you'll need £15,000 to open an account.

[SPOTLIGHT]If you want to fix for four years you can get a leading rate from Coventry Building Society. The deal is fixed until 30th November 2018 and pays 2.25% on deposits from £1.

However, £1 won't get you the best three-year deal. Both Metro and Virgin Money offer to pay 2% on deposits from £1, 0.15% less than Norwich & Peterborough, Yorkshire, Barnsley and Chelsea building societies, that pay the leading rate of 2.15% on deposits from £100.

Use it or lose it

It pays to deposit something rather than nothing in a Cash ISA each year.

That’s because anything you save is protected from tax; not only now but in future tax years.

If you don’t use your allowance, you miss out on the opportunity to build up or add to a tax-free savings pot, which is like throwing money away.

In the new tax year 2015/16 you can invest up to £15,240 in a Cash ISA, Stocks and Shares ISA or both.

Get a broader view

If you want to see how all of the best ISAs stack up against each other, take a look at The best Cash ISAs, Top Cash ISAs for transfers and The hidden best buy Cash ISAs to find the best home for your pot whatever the size.

Get 5% interest from your current account

More on savings:

The best fixed rate savings accounts

The best instant access savings accounts

Where to earn most interest on your cash