Cash ISA limit cut to £12,000 from April 2027

The amount you can save in a cash ISA each year is changing from 6 April 2027.

What's changing

• Cash ISA limit for under-65s: £12,000 a year (currently £20,000)
• Overall ISA allowance: stays at £20,000, so the rest can go into a stocks and shares ISA
• If you are 65 or over, you can still put up to £20,000 into a cash ISA. This applies from the start of the tax year in which you turn 65

New rules to stop workarounds

If you are under 65, you won't be able to transfer money from a stocks and shares ISA (or innovative finance ISA) into a cash ISA. Cash held uninvested in a stocks and shares ISA may also face a charge on the interest.

What to do

If you usually save the full £20,000 in cash, consider using this year's and next year's allowances before the change, and think about whether investing part of your savings suits you. Savings interest outside an ISA will be taxed at higher rates from April 2027 too.