Changes to ISAs: what savers should know
In this guide
The government has announced changes to cash ISA allowances for anyone younger than 65.
If you're under 65 years of age, the changes effect how much you can pay into cash ISAs from 6 April 2027.
Lots of the core benefits of cash ISAs are staying the same.
But the changes could affect how much you can pay into your cash ISA each year.
So let's get you up to speed on the changes.
What ISA rules are changing?
If you're 65 or older, the rule changes don't apply to you. You still have a full £20,000 ISA allowance which you can split however you like across different ISAs.
But if you're younger than 65, the maximum amount you can contribute to a cash ISA will reduce from April 6 2027.
Before, you could put your full £20,000 into a cash ISA if you wanted to. But from April 6 2027, you can only put up to £12,000 into a cash ISA each tax year. You'd have to save the remaining £8,000 of your overall allowance in a different type of ISA.
Any money you've already saved in a cash ISA will continue to earn tax-free interest. The changes only affect future cash ISA contributions from the 2027/2028 tax year onwards.
| Until April 6 2027 | From April 6 2027 |
|---|---|
|
Under 65s: Up to £20,000 across all your ISAs. You can put the full £20,000 into cash ISAs if you want. |
Under 65s: Up to £20,000 across all your ISAs. But only up to £12,000 of this can be put into cash ISAs each tax year. |
|
65 and over: Up to £20,000 across all your ISAs. You can put the full £20,000 into cash ISAs if you want. |
65 and over: Up to £20,000 across all your ISAs. You can put the full £20,000 into cash ISAs if you want. |
Will my existing cash ISA be affected?
Money you already have in any cash ISAs won't be affected. It will continue to earn tax-free interest.
The changes apply only to future cash ISA contributions from the 2027/2028 tax year onwards.
Stocks and Shares ISA transfers
From April 6 2027, if you're under age 65, you won't be able to transfer a Stocks and Shares ISA into a cash ISA until the tax year you turn 65.
Anyone aged 65 or over in that tax year can continue to transfer a Stocks and Shares ISA into a cash ISA. Different providers and different accounts will have different terms and conditions so always check the rules of your specific ISA.
What does this mean for your savings?
If you're under 65:
Your overall annual ISA allowance is still £20,000 per tax year.
The maximum you can put into cash ISAs will reduce to £12,000 per tax year.
So the 2026/2027 tax year is your last opportunity to use your full £20,000 in a cash ISA.
This will be the case until the tax year you turn 65. That's when you'll be able to put your full £20,000 into cash ISAs if you want to.
If you're 65 or over:
Your overall annual ISA allowance stays at £20,000.
You can use your full allowance in cash ISA accounts if you want to.
Things to consider before 6 April 2027
Everyone's financial situation is different, but you may want to:
Review your current savings.
Check how much of your cash ISA contribution limit you've already used.
Consider whether you want to add any savings to ISAs you have this year (if the terms of your ISA allow).
Review the type of ISA that best suits your needs.
Whether you're saving for tomorrow or planning further ahead, our range of cash ISAs could help you make the most of your tax-free savings.
- ISAs