Cash ISA

A Cash ISA is the simplest way to save money without paying tax on the interest. It works just like a normal savings account, except the interest you earn is completely yours to keep. No tax. No forms. No fuss. If you have money sitting in a regular savings account earning interest, a Cash ISA could be doing the same job, but better. We can connect you with a specialist who can help you find the right one. Cash is protected up to £120,000 per person, per authorised firm by the FSCS, but inflation can still reduce what your savings will buy.

What changed in April 2024 Two important updates: First, the minimum age for a Cash ISA rose from 16 to 18. If you are 16 or 17, a Junior ISA is still available. Second, you can now pay into more than one Cash ISA in the same tax year, so you can split your savings across providers to chase the best rates. Your total across all ISAs still cannot exceed £20,000 per tax year.

With interest rates higher than they have been for years, a Cash ISA has become genuinely useful again. If you are a basic rate taxpayer, you can earn up to £1,000 in interest tax-free outside an ISA each year, but if you are a higher rate taxpayer, that drops to just £500. Once you go over those limits, you pay tax on the rest. A Cash ISA removes that limit entirely.

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Building Savings? Protect Your Income Too.

Savings give you a cushion, but if you cannot work due to illness or injury, even a healthy savings pot can drain quickly. Income protection insurance replaces your income if you are off sick, so your savings stay intact for the goals you built them for.

Find out about income protection

Types of Cash ISA. What are your options?

Easy access Cash ISA

Save and withdraw whenever you like. Rates are variable. They can go up or down. Best for your emergency fund or money you might need at short notice.

Fixed rate Cash ISA

Lock your money away for a set period, typically one to five years, in exchange for a guaranteed interest rate. Good if you know you will not need the money and want certainty.

Notice Cash ISA

A middle ground. You can access your money, but you need to give notice first (typically 30, 60, or 90 days). Often pays a better rate than easy access.

Flexible Cash ISA

A flexible ISA lets you withdraw money and put it back in the same tax year without losing your allowance. Not all Cash ISAs are flexible, worth checking before you open one.

Cash Lifetime ISA

For first-time buyers aged 18–39. Save up to £4,000 per year and get a 25% government bonus, up to £1,000 per year. Can only be used for a first home or accessed at 60.

Not sure which type?

The right Cash ISA depends on when you might need the money and whether you want a guaranteed rate. A specialist can talk you through the options for your situation.

Cash ISA vs regular savings account, which is better?

Both hold your money safely and pay interest. The difference is tax. Here is a plain-English comparison.

Feature Cash ISA Regular savings account
Tax on interest ✓ None, ever Taxed above your Personal Savings Allowance (£1,000 basic rate / £500 higher rate)
FSCS protection ✓ Up to £120,000 per authorised firm ✓ Up to £120,000 per authorised firm
Annual limit Up to £20,000 per year (shared across all ISAs) No limit
Tax return needed? ✓ No Yes, if interest exceeds your allowance
Best for Savers who pay tax on interest, or who want simplicity Savers well within their Personal Savings Allowance

If you are a basic rate taxpayer with modest savings, a regular account may be fine. But if you are a higher rate taxpayer, have significant savings, or simply want to keep things simple and tax-free, a Cash ISA may suit you better.

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When a Cash ISA makes the most sense

You are a higher rate taxpayerYour Personal Savings Allowance is only £500. With interest rates where they are, it is easy to exceed that, and a Cash ISA removes the problem entirely.
You want your emergency fund to work harderAn easy access Cash ISA earns tax-free interest on your emergency fund, so your safety net is also quietly growing.
You are saving for something specificA fixed rate Cash ISA gives you a guaranteed return over a set period. Useful if you are saving for a home, a car, or a big family expense.
You want simplicityNo investment decisions, no market risk, no tax return. A Cash ISA is the most straightforward way to save tax-efficiently.
You are a first-time buyerA Cash Lifetime ISA gives you a 25% government bonus on top of your savings, up to £1,000 per year, specifically to help with a first home deposit.
You want to protect future savingsEven if you are within your allowance now, rates and allowances can change. Sheltering savings in an ISA now protects them from future tax changes.

How to get connected to a savings specialist

1

Get in touch

Tell us you are interested in a Cash ISA and a little about your situation, how much you want to save, whether you need easy access, and your goals.

2

We make the introduction

We introduce you to a savings specialist we know and trust. The introduction is warm. They will know your situation before they call.

3

The specialist can help you compare rates

They will go through the types of Cash ISA with you and help you get set up.

4

Your savings start working harder

Your money earns tax-free interest from day one, with no ongoing admin and no tax return to worry about.

Check broadband before you make an offer

Broadband speeds can vary street by street, so check the exact address before you commit. Ofcom's free checker shows which broadband speeds and mobile coverage are available at any UK property.

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Want all your bills in one?

We can introduce you to a specialist who can combine your mobile, broadband and utilities into one bill. There's no fee for the introduction.

We don't provide these services ourselves. Switching household bills is not a regulated financial service, so FCA protections and the Financial Ombudsman do not apply. We'll only pass your details to the specialist if you ask us to. See our privacy notice.

Cash ISA questions answered

Is a Cash ISA safe?
Yes. Cash ISAs held with UK-authorised banks and building societies are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person, per authorised firm. Your money is not invested in the stock market, it earns interest and the amount you put in cannot go down. If you have more than £120,000 to save, spreading it across banks with separate banking licences keeps it all protected. Some brands share one licence and one limit.
Can I transfer my existing Cash ISA to get a better rate?
Yes, and it can be worth considering if your current rate is poor. You can transfer a Cash ISA to a new provider without losing your ISA status or your tax-free history. The key rule is to use an official ISA transfer rather than withdrawing the money yourself, if you withdraw it, it loses its ISA status and counts against your current year’s allowance when you put it back in. A specialist can manage the transfer for you.
Can I pay into a Cash ISA and a Stocks & Shares ISA in the same year?
Yes. You can split your £20,000 annual ISA allowance across different types of ISA in the same tax year, for example, £10,000 into a Cash ISA and £10,000 into a Stocks & Shares ISA. Since April 2024, you can also pay into more than one Cash ISA in the same year, so you can spread your savings across providers to chase the best rates.
What is the Personal Savings Allowance and why does it matter?
The Personal Savings Allowance (PSA) is the amount of interest you can earn outside an ISA before paying tax. Basic rate taxpayers get £1,000 per year; higher rate taxpayers get £500; additional rate taxpayers get nothing. With savings rates higher than they have been for years, many people are now exceeding their PSA without realising it, and paying tax on the excess. A Cash ISA removes this problem entirely, because interest inside an ISA is always tax-free.
What happens to my Cash ISA if I die?
If you are married or in a civil partnership, your spouse or civil partner can inherit your ISA allowance through an Additional Permitted Subscription (APS). This means they can add the value of your ISA to their own ISA allowance, on top of their usual £20,000, preserving the tax-free status of the savings. This does not happen automatically. They need to apply. A financial adviser can help with this.
Is the introduction really free?
Yes, we make the introduction at no cost to you. The savings specialist will explain their service and any costs clearly before you make any decision.
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Explore all ISA types

Investments HubBack to the main investments page, explore all your options in one place. Stocks & Shares ISAInvest your ISA allowance for potentially higher long-term growth. For money you will not need for five years or more. Junior ISA (JISA)Tax-free saving and investing for your children, up to £9,000 per year, accessible at 18. Lifetime ISA (LISA)25% government bonus for first-time buyers and retirement saving, for adults aged 18 to 39.

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