Cash ISA

A Cash ISA is a savings account where the interest you earn is tax-free under current UK tax rules.

1 min read Saving More Money

What it means

A Cash ISA is a savings account where the interest you earn is tax-free under current UK tax rules. You can only put a certain amount of money in a cash ISA per year.

Example

You put £8,000 into a Cash ISA and keep all of the interest you earn without paying tax on it.

Why it matters

It can be a tax-efficient place to keep your savings.

You can only pay in up to the annual ISA allowance across your ISAs each tax year.

Can I have more than one Cash ISA?

You can hold multiple ISAs, but contribution rules apply each tax year.

Related terms

This term comes up a lot when you're saving money.

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