How much can I put in a Cash ISA in 2026/27?

The overall adult ISA allowance for 2026/27 is £20,000, shared across all ISA types you pay into that year. You could put the full £20,000 into a Cash ISA, or split it — say, some into a Cash ISA and some into a Stocks & Shares ISA. This is the last full tax year under-65s can put the whole allowance into cash: from April 2027 the Cash ISA portion is capped at £12,000 for under-65s.

Can I have more than one Cash ISA?

Yes. Since April 2024 you can open and pay into multiple Cash ISAs in the same tax year, as long as your total ISA deposits stay within the £20,000 allowance. That means you can chase the best rate with new money without being stuck with one provider all year — a rule change many savers still don't know about.

How do I transfer a Cash ISA without losing the tax benefits?

Always use the official transfer process: apply to the new provider and complete their ISA transfer form — they'll move the money for you, keeping the tax wrapper intact. Never withdraw the money to move it yourself; once withdrawn, it loses its tax-free status and re-depositing counts against this year's allowance. Cash ISA transfers should complete within 15 working days. Note that not every ISA accepts transfers in, so check before applying.

Is a Cash ISA better than a normal savings account?

If your savings interest exceeds your Personal Savings Allowance (£1,000 basic-rate, £500 higher-rate, £0 additional-rate), a Cash ISA almost always wins — tax at 20–45% takes a far bigger bite than any small rate difference. If you're well within your allowance, simply pick whichever account pays the best rate. Remember the ISA advantage compounds over the years as your sheltered balance grows.

What happens to my Cash ISA at the end of the tax year?

Nothing bad — the money stays in the ISA and keeps earning tax-free interest indefinitely. Your deposit allowance resets on 6 April, giving you a fresh allowance for the new tax year. You don't need to open a new ISA each year, though it's worth checking your rate is still competitive — old ISAs often quietly drop to poor rates.

Can I take money out of a Cash ISA?

Yes, though the consequences depend on the type. Easy access ISAs let you withdraw freely. Fixed rate ISAs must allow early closure or transfer, but charge an interest penalty. The subtlety is your allowance: in a non-flexible ISA, withdrawn money can't go back in without using fresh allowance. A flexible ISA fixes this — you can withdraw and replace within the same tax year penalty-free.

What's the difference between a Cash ISA and a Stocks & Shares ISA?

Both share the same £20,000 allowance and tax-free status, but a Cash ISA is a savings account (capital protected, FSCS covered up to £120,000) while a Stocks & Shares ISA holds investments whose value can fall as well as rise. Cash suits definite, nearer-term goals; investing suits money you can leave for five-plus years and are willing to see fluctuate.

Dashboard

Best Cash ISA Rates

Compare Cash ISAs on DepositScout

Monitoring rates around the clock

Provider	Product			Min Balance
eToro Top pick	Cash ISA Flexible ISA	4.87% Variable	Instant	£500
Tandem Bank	2 Year Fixed Rate Cash ISA Flexible ISA	4.74% Fixed	2 Years	£1
Aldermore	3 Year Fixed Rate Cash ISA Flexible ISA	4.70% Fixed	3 Years	£1,000
Compare Cash ISA with other accounts See All Rates
Tandem Bank	1 Year Fixed Rate Cash ISA Flexible ISA	4.67% Fixed	1 Year	£1
Aldermore	2 Year Fixed Rate Cash ISA Flexible ISA	4.66% Fixed	2 Years	£1,000
Nottingham Building Society	5 Year Fixed Rate Cash ISA Non-Flexible ISA	4.65% Fixed	5 Years	£1
OakNorth Bank	12 Months Fixed Rate Cash ISA Non-Flexible ISA	4.63% Fixed	Instant	£1
Coventry Building Society	Fixed Rate ISA Non-Flexible ISA	4.60% Fixed	15 Months	£1
OakNorth Bank	24 Months Fixed Rate Cash ISA Non-Flexible ISA	4.55% Fixed	Instant	£1
Tembo Top pick	Fixed Rate Cash ISA Non-Flexible ISA	4.55% Fixed	1 Year	£500
Hargreaves Lansdown	HL Cash ISA Non-Flexible ISA	4.52% Variable	Instant	£1
Chip New users only	Smart Cash ISA Flexible	4.41% Variable	Instant	£1

eToro

Top pick

4.87%

AER

Variable

Cash ISA

Flexible ISA

Interest Paid

Monthly

Access

Instant

Minimum Balance

£500

Tandem Bank

4.74%

AER

Fixed

2 Year Fixed Rate Cash ISA

Flexible ISA

Interest Paid

Monthly

Access

2 Years

Minimum Balance

£1

Aldermore

4.70%

AER

Fixed

3 Year Fixed Rate Cash ISA

Flexible ISA

Interest Paid

Monthly/Annually

Access

3 Years

Minimum Balance

£1,000

Compare Cash ISA with other accounts

See All Rates

Tandem Bank

4.67%

AER

Fixed

1 Year Fixed Rate Cash ISA

Flexible ISA

Interest Paid

Monthly

Access

1 Year

Minimum Balance

£1

Aldermore

4.66%

AER

Fixed

2 Year Fixed Rate Cash ISA

Flexible ISA

Interest Paid

Monthly/Annually

Access

2 Years

Minimum Balance

£1,000

Nottingham Building Society

4.65%

AER

Fixed

5 Year Fixed Rate Cash ISA

Non-Flexible ISA

Interest Paid

Annually

Access

5 Years

Minimum Balance

£1

OakNorth Bank

4.63%

AER

Fixed

12 Months Fixed Rate Cash ISA

Non-Flexible ISA

Interest Paid

Monthly

Access

Instant

Minimum Balance

£1

Coventry Building Society

4.60%

AER

Fixed

Fixed Rate ISA

Non-Flexible ISA

Interest Paid

Monthly/Annually

Access

15 Months

Minimum Balance

£1

OakNorth Bank

4.55%

AER

Fixed

24 Months Fixed Rate Cash ISA

Non-Flexible ISA

Interest Paid

Monthly

Access

Instant

Minimum Balance

£1

Tembo

Top pick

4.55%

AER

Fixed

Fixed Rate Cash ISA

Non-Flexible ISA

Interest Paid

On maturity

Access

1 Year

Minimum Balance

£500

Hargreaves Lansdown

4.52%

AER

Variable

HL Cash ISA

Non-Flexible ISA

Interest Paid

Monthly

Access

Instant

Minimum Balance

£1

Chip

New users only

4.41%

AER

Variable

Smart Cash ISA

Flexible

Interest Paid

Monthly

Access

Instant

Minimum Balance

£1

Showing 12 of 22 results

Bank logos are trademarks of their respective owners and used for identification purposes only.

Some links are affiliate links. If you use them, we may earn a commission at no extra cost to you. Providers can't buy better placement. Learn more.

Cash ISA at a glance

Best rate today: 4.87% AER
Top provider: eToro
Accounts tracked: 230
Providers tracked: 68
Protection: FSCS up to £120,000
Rates checked: 2 August 2026

The best Cash ISA depends on access: fixed rate ISAs usually pay the most but lock your money away, easy access ISAs let you withdraw freely, and flexible ISAs let you replace withdrawn money without using up more allowance. If you're moving an existing ISA, always use the provider's transfer process — never withdraw the money yourself.

Ask Penny AI

Not sure if a Cash ISA is right for you? Penny compares every account we track and answers in plain English.

Chat with Penny

What is a Cash ISA?

A Cash ISA (Individual Savings Account) works exactly like an ordinary savings account with one crucial difference: every penny of interest is free from income tax, forever. No allowances to track, nothing to declare — whatever you earn inside the ISA wrapper, you keep. For the 2026/27 tax year you can pay in up to £20,000 across all your adult ISAs.

Cash ISAs come in the same varieties as ordinary savings accounts — easy access, fixed rate and notice — so you don't have to give up flexibility to save tax-free. Rates on top Cash ISAs are now highly competitive with taxable accounts, which makes the tax shelter close to a free lunch for anyone whose interest exceeds their Personal Savings Allowance.

Note for planning ahead: 2026/27 is the last full tax year under-65s can put the full £20,000 into a Cash ISA — from April 2027 the Cash ISA limit drops to £12,000 for those under 65 (the overall ISA allowance stays at £20,000, with the remainder reserved for investment ISAs).

How to open a Cash ISA

Opening a Cash ISA takes about ten minutes online. Transferring an existing one takes a little longer but is just as simple — if you do it the right way.

1Step 1 of 5

Decide between easy access, fixed rate or flexible (see the breakdown below) based on when you'll need the money.

2Step 2 of 5

Compare rates in the table above. Check minimum deposits and whether the ISA accepts transfers in — not all do.

3Step 3 of 5

Apply online with your personal details and National Insurance number (required for all ISAs).

4Step 4 of 5

Fund the ISA with new money, up to your remaining annual allowance.

5Step 5 of 5

Moving an existing ISA? Fill in the new provider's ISA transfer form and let them move the money. Withdrawing it yourself permanently loses that money's tax-free status.

Cash ISA pros and cons

Pros

All interest is completely tax-free, with nothing to declare
Save up to £20,000 this tax year (2026/27)
Available in easy access, fixed rate and flexible varieties
FSCS protection up to £120,000 per person, per banking licence
Balances can be transferred between providers without losing tax-free status

Cons

Annual deposit allowance caps how much you can shelter each year
Top Cash ISA rates occasionally trail the best taxable accounts
Withdrawing from a non-flexible ISA permanently uses up that allowance
Fixed rate ISAs charge an interest penalty for early access
The Cash ISA limit drops to £12,000 for under-65s from April 2027

Is my money safe in a Cash ISA?

Yes — Cash ISAs are deposit accounts, protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person, per authorised banking licence. Every Cash ISA listed on DepositScout is FSCS protected. Unlike a Stocks & Shares ISA, your capital is never at risk from market movements.

If your ISA balance has grown beyond the FSCS limit — easy after years of allowances and compounding — you can split it across providers using ISA transfers without losing the tax wrapper.

How the tax break compares to the Personal Savings Allowance

Outside an ISA, basic-rate taxpayers can earn £1,000 of savings interest tax-free each year (the Personal Savings Allowance); higher-rate taxpayers get £500, additional-rate taxpayers nothing. Beyond that, interest is taxed at your marginal rate — 20%, 40% or 45%.

A Cash ISA shelters everything, regardless of balance or tax band. With rates at recent levels, a higher-rate taxpayer breaches their £500 allowance with under £15,000 in a top easy access account — so the ISA wrapper matters at far smaller balances than many people assume. And unlike the PSA, the ISA shelter compounds: interest earned tax-free this year earns tax-free interest itself next year.

Work out what you'll keep after taxFree UK savings tax calculator — personal allowance, tax bands and take-home interest.

Fixed, easy access or flexible — which Cash ISA is best?

All Cash ISAs share the same tax break. The differences are about access to your money and your allowance:

Fixed rate Cash ISA

A guaranteed rate for a set term (1–5 years), usually the highest Cash ISA rates on the market. Unlike ordinary fixed bonds, providers must allow you to close or transfer early — but expect an interest penalty, typically 90–365 days' worth.

Easy access Cash ISA

Withdraw whenever you like at a variable rate. Ideal if you want tax-free interest without locking money away. Watch for withdrawal limits on some accounts.

Flexible Cash ISA

A powerful extra: withdraw money and replace it within the same tax year without using up more allowance. Not all ISAs are flexible — if you dip into savings regularly, seek this feature out specifically.

Cash ISA FAQs

Straight answers to the questions savers actually ask.

Looking for something else?

Compare every account type we track, side by side.

Savings accounts

Easy Access

Withdraw whenever you like — ideal for emergency funds.

Fixed Rate

Lock your money away for a guaranteed rate.

Notice Accounts

Give 30–180 days' notice in return for higher rates.

Regular Savers

High headline rates on smaller monthly deposits.

ISAs

Junior ISA

Tax-free savings for children under 18.

Lifetime ISA

25% government bonus towards a first home or retirement.

Stocks & Shares ISA

Invest tax-free — compare platforms and fees.

Written by

Jonny Pease

Reviewed by

Jan Watermann

Rates checked 2 August 2026

How we rank·How we make money·Editorial policy

This page is for information only and is not financial advice. Rates and account terms can change at any time — always confirm the details on the provider's website before opening an account. Read our full disclaimer.

DepositScout Alerts

2 minutes ago

Easy Access rate just dropped

A top provider just cut their rate. Here's what you need to know about the latest market shift.

Nationwide FlexSaver Rate Down

4.20% AER

4.75%

View Best Rates

Live Market Tracking

Track Cash ISA rates before they move

Join 1,000+ savers using DepositScout who get instant email alerts when top UK savings rates change. Never miss out on a better deal again.