An easy access cash ISA allows you to withdraw money and add to your funds at any time, without incurring a penalty. Variable interest rates typically apply.
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Find a cash ISA that meets your needs
What is a cash ISA?
A cash ISA is a savings account that lets you earn interest without paying any tax on it. That’s its main advantage over a standard savings account, where you may have to pay tax on the interest you earn once you go over your Personal Savings Allowance (PSA).
The PSA is £1,000 per tax year for basic-rate (20%) taxpayers and £500 a year for higher-rate (40%) taxpayers. Additional-rate taxpayers have no PSA.
How does a cash ISA work?
Cash ISAs work in a similar way to standard savings accounts. But there’s a limit to how much you can pay in each tax year. This is £20,000 for 2025/26.
You can divide your ISA allowance between different types of ISA, including cash ISAs, stocks and shares ISAs, lifetime ISAs and innovative finance ISAs.
Some cash ISAs are flexible, which means you can withdraw cash and pay it back in during the same tax year without affecting your annual allowance.
Number of adult cash ISAs subscriptions:[1]
9.94million
Is my money safe?
The Financial Services Compensation Scheme (FSCS) guarantees that the first £85,000 you have saved with a UK-authorised bank or building society (or the first £170,000 for a joint account) will be safe even if the business goes bust.
What are the different types of cash ISA?
![Easy access cash ISAs]()
Easy access cash ISAs
An easy access cash ISA allows you to withdraw money and add to your funds at any time, without incurring a penalty. Variable interest rates typically apply.
![Fixed rate cash ISAs]()
Fixed rate cash ISAs
With a fixed rate cash ISA, you lock your money away for a year or more in return for a higher, fixed interest rate. You usually can’t access your funds without penalty.
![Notice cash ISAs]()
Notice cash ISAs
You can only access money held in a notice cash ISA if you provide a set number of days’ notice first – this is usually between 30 and 180 days.
![Regular saver cash ISAs]()
Regular saver cash ISAs
With a regular saver, you must pay in a set amount each month. Some accounts offer unlimited withdrawals, while others have restrictions.
![Lifetime ISAs]()
Lifetime ISAs
A lifetime cash ISA is designed to help those aged 18–39 save for a first home or retirement. You can pay up to £4,000 each year into a lifetime ISA. The government offers a 25% bonus.
![Junior cash ISAs]()
Junior cash ISAs
Designed to help you save for your children, you can pay up to £9,000 per tax year into a junior cash ISA. Your child can’t access the money until they turn 18.
What are the different types of cash ISA?
Easy access cash ISAs
Fixed rate cash ISAs
With a fixed rate cash ISA, you lock your money away for a year or more in return for a higher, fixed interest rate. You usually can’t access your funds without penalty.
Notice cash ISAs
You can only access money held in a notice cash ISA if you provide a set number of days’ notice first – this is usually between 30 and 180 days.
Regular saver cash ISAs
With a regular saver, you must pay in a set amount each month. Some accounts offer unlimited withdrawals, while others have restrictions.
Lifetime ISAs
A lifetime cash ISA is designed to help those aged 18–39 save for a first home or retirement. You can pay up to £4,000 each year into a lifetime ISA. The government offers a 25% bonus.
Junior cash ISAs
Designed to help you save for your children, you can pay up to £9,000 per tax year into a junior cash ISA. Your child can’t access the money until they turn 18.
Pros and cons of cash ISAs
Pros
No tax is due on any of the interest earned in a cash ISA
You can open some cash ISAs with as little as £1
The FSCS protects your savings up to £85,000 per financial institution
Choose from easy access and fixed rate options
Cons
You can only save up to £20,000 per tax year in an ISA
To move accounts, you must follow the ISA transfer process
Cash ISA rates can be lower than standard savings rates
Variable interest rates can fall in line with base rate changes
What’s the difference between a cash ISA and a savings account?
The biggest difference is how your interest is taxed. Cash ISA interest is always tax-free, regardless of how much you earn. With a standard savings account, you pay tax on interest once you go over your PSA.
However, you can only pay up to £20,000 per tax year into a cash ISA, whereas you can save much more than this each year in a standard savings account.
Total amount paid into adult cash ISAs per tax year
The total amount paid into cash ISAs has varied significantly over the years. Figures shown in billions of pounds.
Source: UK government's Annual Savings Statistics report. Updated: September 18, 2025
How many cash ISAs can you have?
Thanks to a rule change in April 2024, there’s no limit to the number of cash ISAs you can have. This means you can open and pay into several cash ISAs with different providers in the same tax year – although you can only open and pay into one lifetime ISA each tax year.
However, your total contributions across all ISA types must still stay within the £20,000 annual allowance.
How to choose a cash ISA
Accessibility
To decide what type of cash ISA you need, consider whether you want instant access to your cash or if you can lock it away for a year or more. If you’re looking for something in between an easy access account and a fixed rate account, consider a notice cash ISA.
Deposits
If you have a lump sum to stash away, a fixed rate cash ISA is probably the best option. But if you want to add to your account regularly, think about an easy access, regular saver or notice cash ISA. Don’t forget to check minimum and maximum deposit limits.
Management
Do you want to manage your cash ISA online or through an app? Or would you prefer to be able to manage it over the phone or in a local bank branch? Thinking about this can help you choose between an account with a digital provider or a high street bank.
Interest rate
Once you know what type of cash ISA you want to open, look for the one paying the highest interest rate. Check whether it pays a fixed or variable rate, remembering that variable rates tend to mimic movements in the Bank of England base rate.
How to open a cash ISA
You can usually open a cash ISA online, although some banks and building societies let you open cash ISAs in branch or over the phone. You must provide some personal details, including your National Insurance number, as well as proof of ID and address.
If you want to move funds across from an existing cash ISA, you must complete a transfer form to avoid losing its tax-free status.
Cash ISA FAQs
Is my money safe in a cash ISA?
Yes, if you’ve opened a cash ISA with a UK authorised bank or building society, the Financial Services Compensation Scheme (FSCS) protects your funds up to £85,000 per person per financial institution.
Can I withdraw money from a cash ISA?
Yes, you can withdraw money from a cash ISA. However, if you withdraw funds from a notice cash ISA without giving the required notice or from a fixed rate cash ISA before the end of the term, you will likely pay a penalty. If you want to move funds from one cash ISA to another, you must carry out an ISA transfer (rather than withdrawing the funds) to avoid losing its tax-free status.
Do I have to declare my cash ISA to HMRC?
No, you don’t need to declare your cash ISA to HMRC because the interest earned within a cash ISA is tax-free.
Can I have both a cash ISA and a stocks and shares ISA?
Yes, you can have both a cash ISA and a stocks and shares ISA at the same time and with different providers. However, your total ISA contributions must not exceed the annual allowance of £20,000.
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References
1. Number of adult cash ISAs subscriptions: Source: UK government Commentary for Annual savings statistics report: September 2025