Understanding ISAs:

Everything you need to know 

An ISA is an Individual Savings account. If you save in an ISA, you don't pay any tax on the interest earned.
There are several types of ISAs including Cash ISA, Stock & Shares ISA, Lifetime ISA and Innovative Finance ISA. 
We only offer a range of Cash ISAs 

Understanding the Cash ISAs we offer

Fixed rate cash ISA

  • Interest rate is fixed for a set period of time.
  • No access and withdrawals allowed 

Variable rate cash ISA

  •  Interest rate will change depending on market conditions. 
  • Our variable rate cash ISAs are flexible. This means you can withdraw your money and replace that money before the end of the same tax year without it affecting your annual ISA allowance. These are called Replacement Subscriptions.

All your questions answered

How much can I save in an ISA?

Each tax year – which runs from 6 April until 5 April the next year – the Government gives you an annual ISA allowance and this can be split as desired between Cash ISAs, Stocks & Shares ISAs, Lifetime ISAs (maximum £4,000) and Innovative Finance ISAs. You can only pay your ISA allowance into one Principality Cash ISA in the current tax year. The ISA allowance for the 2024/25 tax year is £20,000. The ISA allowance is reviewed annually by the Government and ISAs may change in the future.

Depending on the account terms of your Cash ISA, you can choose to pay in the amount of your annual cash ISA allowance as one lump sum into your Cash ISA, or smaller amounts as and when you can.

If I don’t use my annual Cash ISA allowance this year, can I carry it over to next year?

You cannot carry one year’s ISA allowance over into the next year and if you don’t use your full tax free ISA allowance by April 5, you’ll lose it when the tax year ends. So it’s important to act now.

What if I want to withdraw money from my Cash ISA?

You can make withdrawals from most Principality Cash ISAs (depending on the account terms), though many fixed term Cash ISAs do not allow withdrawals until their term has finished.

If your account is flexible then you are able to withdraw money from a Cash ISA and replace that money before the end of the same tax year, without it affecting your annual ISA allowance.

Can I transfer money from another Cash ISA account to Principality?

Yes, Principality welcomes transfers from other providers and you can transfer out, subject to the Account Terms of your Cash ISA. If you have ISA savings with another provider, you may be able to transfer them to us and have the benefit of keeping all your tax free cash savings in one place.

Please visit our ISA Transfers page for more information.

How many ISAs can I have?

Investors can pay into a variety of ISA types (Cash ISA, Stocks and Shares ISA, Lifetime ISA and Innovative Finance ISA for example). Each year, the ISA allowance can be split as desired between these ISA types (up to a maximum of £4,000 in a Lifetime ISA). There's no limit overall to how many ISAs you can have over different tax years and you may be able to keep an ISA going after the end of the tax year when you opened it. Here at Principality, we only offer a range of Cash ISAs, and we only allow you to invest your allowance into one Cash ISA in any tax year.

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

A Cash ISA lets you save in things like a deposit account and with a Stocks and Shares ISA you can invest in the stock market.

With an ISA in place, you don’t have to pay income tax or capital gains tax on any returns, although you might have to pay other taxes, if they apply to you.

Principality has a great range of Cash ISAs, from easy access accounts to longer-term investments. Cash ISAs can be at fixed or variable rates, and with different terms or access.

More information about the latest ISA rules

At the start of the 2024/25 tax year, HMRC introduced new ISA rules. This means some of the ways ISAs work has changed.

Find out more about the latest rules on ISAs.


We are covered by the Financial Services Compensation Scheme.
Find out more about what it means for you.

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