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Updated 24 June 2026

Government changes to cash ISA limits

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What's changing from 6 April 2027

Your total annual ISA allowance will still be £20,000, but the way you can use it will change for those under 65:

  • You’ll be able to put up to £12,000 in a cash ISA each tax year.
  • The rest – up to £8,000 – could go into a stocks and shares ISA.
  • Or, you can choose any combination that suits you, as long as you don’t exceed £12,000 in a cash ISA and your total across both types of ISAs doesn’t go over the £20,000 total ISA allowance.
  • The annual limit for stocks and shares ISAs remains at £20,000.
  • For those aged 65 or over, these changes don’t apply. The full £20,000 annual ISA allowance will remain, which can be used across all ISAs.


The changes only apply to new contributions from 6 April 2027 onwards, so you still have this tax year and the next to save up to £20,000 in a cash ISA tax free, if that’s right for you.

Any money already saved in your cash ISA from this year or previous years, should stay protected and continue to earn tax-free interest.

No changes have been made to the Junior ISAs allowance, which remains at £9,000 each tax year per child.

Separate to the changes announced for ISAs, from April 2027, the income tax you pay on interest received from savings, (over your personal savings allowance and outside of ISAs) will increase to 22% for basic-rate taxpayers, 42% for higher-rate taxpayers and 47% for additional-rate taxpayers.

Read our Budget article Open in new window

Update - 23 June 2026

The Government has shared more detail on how ISA changes due in April 2027 will work.

 

What this means for you today

Any money you already hold in a Cash ISA & up until 5 April 2027, should not be impacted and will remain tax-free. 

 

There are also changes to Stocks & Shares ISA's but these won't affect your Cash ISA. You can find more details here on the Government website.

 

These proposals are still subject to legislation but we'll continue to keep this page updated to support you.

 

To make things easier, we've grouped the changes by age below:

Changes from 6 April 2027 for under 65s

The overall ISA allowance will remain at £20,000, however from 6 April 2027 the amount you can save into a Cash ISA (variable or fixed rate) each year will be limited to £12,000.

 

There will also be new rules on transferring between ISA types. 

Transferring between the below ISA's will still be allowed:

  • Cash ISA to Cash ISA
  • Stocks & Shares ISA to Stocks & Shares ISA
  • Cash ISA to Stocks & Shares ISA

Transferring a Stocks & Shares ISA to a Cash ISA will no longer be allowed.

 

Using an ISA transfer, you can currently move your money freely between different ISA types. You may want to think about what you'd like to do with your ISA savings before these changes come in from 6 April 2027.

Changes from 6 April 2027 for 65 and over

The rules for Cash ISAs for under 65s will be removed at the start of the tax year in which you turn 65 (not on your birthday). For example:

 

If you turn 65 on 1 April 2029:

  • Your overall ISA allowance will still be £20,000 but you'll no longer be limited on what you can save in a Cash ISA. This means you'll be able to save up to £20,000 into a Cash ISA from the 2028/29 tax year onwards
  • You'll also be able to transfer between ISA types freely from 2028/29 tax year onwards
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Our Ulster Bank Cash ISA

An instant access, tax-free savings account.

  • Tax-free interest on balances up to £20,000
  • 1.15% AER/Gross p.a.(variable) for balances between £1 - £24,999
  • 2.45% AER/Gross p.a.(variable) for balances over £25,000
Information Message

Available to UK residents aged 18+. Save up to £20,000 for the current tax year. You can only pay into one Cash ISA with Ulster Bank. Interest is paid on last day of October and at account closure.

View Cash ISA Open in new window

I want to transfer from an existing ISA

An ISA transfer is when you switch your ISA savings to a new provider. You might do this to get a better interest rate, or to take advantage of a different type of ISA altogether. You can transfer an existing ISA held elsewhere into your Ulster Bank ISA at any time, bringing all your ISAs together in one place.

Transferring an ISA from a previous tax year won’t affect your allowance for this year. Just remember to go through the ISA transfer process. That way, you won't lose out on any of your tax benefits.

Full details on how to complete an ISA transfer can be found here.


Please note, your existing provider may charge an ISA transfer fee.

Transfer to an Ulster Bank ISA - in detail Open in new window
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Your essential guide to ISAs

We're here to help you understand the details on ISA benefits, your ISA allowance and more, including ways to manage your ISA.

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ISAs explained

We’ve created short, easy videos to explain how ISAs work. You’ll also discover how to make the most of your annual ISA allowance.


Please note, the annual ISA allowance and how it can be used, referenced in these videos, are those applied under current legislation. From 6 April 2027 how you use your allowance will change for under 65s.

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ISAs explained

In this video we cover all the basics of ISAs.

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Instant access cash ISA

Discover how instant access cash ISAs work.