Savings
⏱ 2 min read
📅 Updated Apr 2026
The Government Is Cutting Your Cash ISA Limit to £12,000 — What to Do Before 2027
Cash ISA allowance for under-65s drops from £20,000 to £12,000 in April 2027. Here's what to do with your savings before the limit changes.
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ISA Change — From April 2027
The government has confirmed that from April 2027, the amount you can put into a Cash ISA each year will be cut from £20,000 to £12,000 for under-65s. The overall ISA allowance stays at £20,000 — but the extra £8,000 must go into a Stocks & Shares ISA or other wrapper if you want to use the full allowance.
You have until 5 April 2027 to use the current £20,000 Cash ISA limit. Here's what to do.
How the ISA Allowances Change
| ISA Type | 2026/27 Limit | 2027/28 Limit (under 65s) |
|---|
| Cash ISA | £20,000 | £12,000 |
| Stocks & Shares ISA | £20,000 | £20,000 |
| Lifetime ISA | £4,000 | £4,000 |
| Total ISA allowance | £20,000 | £20,000 |
Over 65s are exempt: The £12,000 cap applies to under-65s only. Savers aged 65 and over can still deposit up to £20,000 in a Cash ISA from 2027/28.
What Should You Do Before April 2027?
Best Cash ISA Rates — April 2026
| Provider | Rate (AER) | Type |
|---|
| Chip Cash ISA | ~4.84% | Easy access |
| Plum | ~4.77% | Easy access |
| Virgin Money | ~4.6% | Fixed 1 year |
| Nationwide | ~4.25% | Easy access |
Bottom line: The current 2026/27 tax year is one of the last chances to put the full £20,000 in a Cash ISA. If you're a cautious saver who prefers cash, use the full allowance this year and next. From 2027 you'll need to make harder choices about where to put the remaining £8,000.
By Chandraketu Tripathi · Updated April 2026 · kaeltripton.com
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The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA.
CT
Chandraketu Tripathi
Finance Editor · Kaeltripton.com
Chandraketu (CK) Tripathi, founder and lead editor of Kael Tripton. 22 years in finance and marketing across 23 markets. Writes on UK personal finance, tax, mortgages, insurance, energy, and investing. Sources: HMRC, FCA, Ofgem, BoE, ONS.
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