Cash ISA
A tax-free cash savings account for UK adults. All interest earned inside a Cash ISA is completely free of income tax, making it the simplest tax shelter available.
How It Works
You open a Cash ISA with a bank or building society and deposit up to £20,000 per tax year. The interest you earn is completely tax-free. You can withdraw money at any time. Your ISA allowance resets every 6 April.
Tax Treatment
Interest earned is entirely free of UK income tax. Does not count towards the Personal Savings Allowance.
Tax Advantages
- All interest is free of income tax regardless of your tax band
- Does not use your Personal Savings Allowance
- No need to declare ISA interest on your tax return
Who Is This Suitable For?
Anyone who wants a risk-free, tax-free home for cash savings. Particularly useful for higher rate taxpayers.
Related Calculators
Frequently Asked Questions
Can I have more than one Cash ISA?▾
Yes, since April 2024 you can open multiple ISAs of the same type, as long as total contributions across all ISAs do not exceed £20,000.
What happens to my ISA if I die?▾
Your spouse or civil partner can inherit an additional ISA allowance equal to the value of your ISA through the Additional Permitted Subscription (APS) rules.
Can I transfer my Cash ISA to a Stocks & Shares ISA?▾
Yes, you can transfer between ISA types without it counting towards your annual allowance. The transfer must be done through the new provider.