Cash ISA UK: rates, rules, allowance and how to choose
A cash ISA shelters savings interest from UK income tax inside a 20,000 pound annual allowance shared across the ISA family. This guide covers the 2026-27 rules, easy-access vs fixed-rate vs notice products, transfer mechanics and FSCS protection.
CT
Chandraketu Tripathi
Finance Editor, Kaeltripton
Published19 Apr 2026
Last reviewed27 Jun 2026
✓ Fact-checked
Photo by Towfiqu barbhuiya on Unsplash
Advertisement
LAST REVIEWED: 27 JUNE 2026
Best cash ISA rates -- June 2026
Best easy-access cash ISA: Trading 212 -- 4.51% AER (variable, includes 0.91% bonus, apply by 3 July 2026)
Best easy-access (transfers): Chip -- 4.42% AER
Best 1-year fixed cash ISA: AlRayan Bank via Meteor Savings -- 4.70% AER (Sharia-compliant, open to all)
Best 2-year fixed cash ISA: Hodge Bank -- 4.71% AER
Best 3-year fixed cash ISA: Aldermore -- 4.66% AER
Key rule change: From April 2027, the cash ISA allowance falls from £20,000 to £12,000 for savers under 65. The 2026/27 tax year is the last opportunity to shelter the full £20,000. Rates correct at 27 June 2026. FSCS-protected up to £85,000.
A Cash ISA shelters interest from income tax regardless of amount. The 2026/27 annual allowance is £20,000, falling to £4,000 for under-65s from April 2027. Easy-access Cash ISAs allow withdrawals without penalty; fixed-rate Cash ISAs lock your money for a set term in exchange for a higher rate. All Cash ISA providers must be FCA-authorised and deposits are FSCS-protected up to £85,000.
Advertisement
Kael Tripton Deals
Verified UK deals: bank switch bonuses, savings rates, insurance offers and more
Checked against provider pages and updated weekly. Every listing labelled. No commission on any financial offer.
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.
