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.
CT
Chandraketu Tripathi
Finance Editor, Kaeltripton
Published3 Apr 2026
Last reviewed17 Jun 2026
✓ Fact-checked
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The Cash ISA limit drops to £4,000 for under-65s from April 2027. Options include: maximising the full £20,000 Cash ISA allowance in 2026/27 before the cut; switching to a Stocks and Shares ISA for the remaining allowance; or moving to a high-interest savings account for amounts above £4,000. The change does not affect existing Cash ISA balances (HM Treasury 2026).
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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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.
