Cash ISA UK Tax-Free Savings With More Choice.
Understand how Cash ISAs work in the UK, how the ISA allowance applies, what to look for when comparing Cash ISA rates, and the difference between easy-access and fixed-rate options.
A tax-efficient home for your cash savings
A Cash ISA is a type of Individual Savings Account that lets you earn interest on cash without paying Income Tax on that ISA interest.
Unlike a standard savings account, interest earned within an ISA does not need to be declared on your tax return. This can make Cash ISAs particularly relevant to savers who are earning enough interest to use some or all of their Personal Savings Allowance.
Cash ISAs can come with different access structures, including easy-access, notice and fixed-rate products. The best option depends on when you may need your money and how much flexibility you want.
Which type of Cash ISA could suit your savings?
Cash ISAs can differ significantly in how quickly you can access your money. Compare the structure before focusing on the interest rate alone.
Easy-Access Cash ISA
Designed for savers who want tax-free interest while retaining relatively easy access to their money.
- Usually variable interest
- Flexible access may be available
- Useful for accessible savings
- Check withdrawal limits
Fixed-Rate Cash ISA
A fixed-rate Cash ISA can offer a guaranteed interest rate for a set period, subject to the product's access conditions.
- Fixed interest rate
- Known return over the term
- Access restrictions may apply
- Check early-access charges
Notice Cash ISA
A notice Cash ISA requires advance notice before withdrawing money and can suit planned savings rather than emergency cash.
- Notice period applies
- Potentially competitive rates
- Less immediate access
- Plan withdrawals in advance
How much can you put into a Cash ISA?
For the 2026/27 tax year, the overall ISA allowance is £20,000. You can use the allowance across eligible ISA types, subject to the individual limits that apply to products such as a Lifetime ISA.
You do not have to put the full £20,000 into a Cash ISA. You can split your annual ISA subscriptions between different types of ISA, provided you remain within the applicable rules.
Cash ISA rules are scheduled to change from April 2027
The government has announced reforms to the Cash ISA allowance. Understanding the planned change matters if you are building a long-term savings strategy.
Current Cash ISA position
For the 2026/27 tax year, the overall ISA allowance is £20,000 and the current Cash ISA rules remain in place.
- Overall ISA allowance: £20,000
- Cash ISA interest remains tax-free
- Multiple ISA types can be used
- Transfer rules continue to apply
New Cash ISA limit for under-65s
The planned reform will reduce the Cash ISA subscription limit to £12,000 for people under 65 while keeping the overall ISA allowance at £20,000.
- Cash ISA limit: £12,000 for under-65s
- Overall ISA limit remains £20,000
- Cash ISA limit remains £20,000 for age 65+
- Additional transfer restrictions are planned
Don't compare Cash ISA rates in isolation
Cash ISA interest rates can vary between providers and products. A headline rate may depend on conditions such as a new-customer bonus, transfer eligibility, minimum deposits or a fixed term.
When comparing the best Cash ISA rates, look at the full account structure alongside the AER.
Moving your Cash ISA? Use the proper transfer process
If you find a better Cash ISA rate, you can usually transfer your ISA savings to another provider. To preserve the tax-free ISA status, the transfer should be arranged through the ISA providers rather than withdrawing the money yourself.
Providers can have different transfer processes, and some may charge for transferring certain fixed-rate products.
Why is Cash ISA interest tax-free?
Interest earned inside a Cash ISA is not subject to Income Tax. This is one of the main reasons savers consider ISAs when comparing them with ordinary taxable savings accounts.
The Personal Savings Allowance applies to ordinary savings interest, but ISA interest is treated differently and remains outside the normal taxable savings-interest calculation.
Use this checklist before choosing a Cash ISA
A higher Cash ISA rate is not automatically the best option. Consider access, transfer rules, bonuses and your own savings timeline.
Related savings guides
Compare Cash ISAs with other UK savings options and understand how access, rates and account structures differ.
Easy Access Savings
Learn how flexible savings accounts work and when instant access can be more important than a higher rate.
Explore Easy Access → Savings · 02Fixed Rate Savings
Understand fixed-term savings and how guaranteed rates compare with flexible savings options.
Explore Fixed Savings → Savings · 03Notice Savings Accounts
Learn about notice periods, planned withdrawals and savings accounts that sit between easy access and fixed terms.
Explore Notice Savings → Savings · 04Regular Savings Accounts
Explore regular saver accounts, monthly deposits and interest rate conditions.
Explore Regular Savings → Savings · 05Children's Savings
Understand children's savings accounts, Junior ISAs and long-term saving options.
Explore Children's Savings → Savings · 06UK Savings Guides
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Cash ISA questions answered
Straightforward answers to common questions about Cash ISA allowances, rates, withdrawals, transfers and tax-free interest.
Make your savings work harder, tax-free.
Compare Cash ISA structures, understand the allowance and explore different savings options before deciding where your money fits.