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Cash ISAs

What are Cash ISAs?

• A Cash ISA is type of savings plan that allows you to earn interest tax free. You can invest up to £3600 each year into a cash ISA, and can transfer your ISA to different providers to make sure you get a good rate of interest at all times.
• If you want to fully use your annual ISA allowance of £7200, the other £3600 would need to be invested in a Stocks and Shares ISA.

Who are they Suitable For?

• Cash ISAs are suitable for anyone who pays income tax, and has some money they want to save in a risk-free environment.
• Because of the tax free status, it is best to make sure you use up your ISA allowance before putting savings elsewhere where the interest would be taxed. Our savings accounts guide gives you some information about the tax position of savings accounts.

What to Look Out For

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• Some Cash ISAs don’t allow transfers in from other providers, but all are required by law to transfer out within 30 days of your request. Your new provider will have a form which you send to your existing ISA manager to arrange the transfer.
• Cash ISAs are just like other forms of saving so you need to be aware of the following areas:
  • Is the interest rate competitive?
  • Is there a bonus included in the advertised interest rate?
  • Is there a notice period required for withdrawals.

Take a look at our guide on Things to Watch Out For for savings for some more details on these areas.

What to do next

Get a feel for the Key Factors to Consider when choosing a savings plan, so you can go in knowing what you’re looking for.

Then compare cash ISA savings accounts to find the best deals around with our best buy tables or product searches.

Moneyfacts.co.uk has also put together a range of savings guides if you are looking around for other types of savings plan.