Best cash ISAs

A Cash ISA (Individual Savings Account) is similar to a regular savings account, but you earn tax-free interest on your savings.

As long as you don't exceed the annual contribution limit, you can technically have as many Cash ISAs as you like. You can have Cash ISAs with different providers, although some will only let you have one Cash ISA with them.

As of the 2025/26 tax year, the annual ISA allowance is £20,000. This is the maximum amount you can save in any ISAs you have, and this isn't restricted to just one ISA. You can save up to £20,000 in Cash ISAs, Stocks and Shares ISAs, and one Lifetime ISA in a single tax year.

The main difference is tax. Interest earned in a Cash ISA is completely free of UK income tax. With a standard savings account, interest counts towards your Personal Savings Allowance (£1,000 for basic rate taxpayers, £500 for higher rate). If you’re likely to earn more interest than your allowance, a Cash ISA is often the better choice.

Yes, you can transfer your Cash ISA to a new provider without losing the tax-free status on your savings. You must use an official ISA transfer rather than withdrawing and re-depositing the money, which would use up your annual allowance again. Most providers support ISA transfers, though it can take a couple of weeks to complete.