The ‘best’ ISA for UK savers that gives ‘healthy returns’ | Personal Finance | Finance
The ‘best’ ISA for UK savers is one that gives them a “healthy return” on the money they put away. There are a number of different types of ISAs available to UK savers. The most common type is the Cash ISA, which currently allows savers to put away £20,000 per year and earn tax-free interest. However, Chancellor Rachel Reeves is expected to slash this limit in a bid to encourage more investment to benefit the British economy.
With this rule change, more savers might move away from Cash ISAs and opt for Stocks and Shares ISAS. These ISAs allow savers to invest in stocks, shares, bonds, and other things, earning tax-free returns. Although it is not as secure as a Cash ISA, where a certain amount of interest is guaranteed, the return on a Stocks and Shares ISA can be huge compared to safer options. According to Money.co.uk, the best ISA for savers to get is the Wesleyan With Profits Stocks and Shares ISA.
The company won the award for ‘Best ISA Provider of the Year’ at the Wealth & Asset Management Awards 2025 in May and was praised for its financial and non-financial benefits.
Going up against competition such as Hargreaves Lansdown and True Potential Investments, Wesleyan won the award for its flagship With Profits ISA. Those who sign up to this ISA are investing in “a diverse range of assets”, which is managed by the in-house investment experts.
“The Wesleyan With Profits Fund holds more than £4 billion of customer investments, as at November 2024, across a diverse mix of asset classes,” the judging panel revealed. “Boasting a strong long-term performance track record, the fund has delivered healthy financial returns for the firm’s With Profits ISA plan holders, which was highly commended by the judges.”
This ISA requires a minimum contribution of £50 per month, with the investment experts promising “smoothed returns” which means will “worry less about stock market ups and downs in financially uncertain times”.
Wesleyan’s strategy of “smoothing” involves holding back some returns when market performance is strong in order to support returns when the market experiences losses. This, they say, helps to delivery more “steady growth”, easing fears for those who might be unsure about Stocks and Shares ISAs.
The firm says that savers who might have invested £10,000 in its Stocks and Shares ISA ten years ago could have £15,780 in 2025.
Rachel Reeves is expected to reduce the current £20,000 tax-free savings allowance to £10,000 for Cash ISAs. While there is a suspected push to Stocks and Shares ISAs, these savings options carry more risk as the value of your investments can go down as well as up, leading most people to choose the safer Cash ISA option.
