Category
UK ISA Guides
Capital at risk. The value of investments can fall as well as rise, and you may get back less than you put in. Past performance is not a guide to future returns.
Important: This guide provides general information, not personalised financial advice. Financial products, rates and eligibility rules can change, so check the provider’s current terms before applying. Some links are referral links — we may earn a commission.
Quick answer
Wondering whether an ISA is worth it? Start here.
An ISA is a tax wrapper: interest, dividends and gains inside it are free of UK Income Tax and Capital Gains Tax. You can pay in up to £20,000 in the 2026/27 tax year (6 April to 5 April), split across ISA types if you like (source: GOV.UK, checked 4 October 2026).
The main choice is what goes inside. A Cash ISA works like a savings account.
A Stocks and Shares ISA holds investments, which can fall as well as rise. A Lifetime ISA adds a government bonus for a first home or later life, with a penalty if you withdraw for anything else.
Cash ISA changes have been announced for 6 April 2027. They aren’t in force during 2026/27 — check GOV.UK closer to the time.
FSCS protects eligible deposits up to £120,000 per person, per authorised institution. This applies to Cash ISAs, not Stocks and Shares ISAs.
Capital at risk. In a Stocks and Shares ISA, the value of investments can fall as well as rise, and you may get back less than you put in.
Decision guides
ISA types compared
How the main types differ. Snapshot dated 27 September 2026: the 2026/27 allowance is £20,000.
| Type | Key point | Visit guide |
|---|---|---|
| Cash ISA | Works like a savings account. FSCS protection applies where eligible. | Easy-access guide |
| Stocks & Shares ISA | Invests your money, so fees matter. See our fee scenarios. | S&S ISA fees |
| Lifetime ISA | Comes with a government bonus and a withdrawal penalty. Read the rules first. | Lifetime ISA rules |
| Transfers | Moving an ISA is not a current-account switch | How to transfer an ISA |
Key decision routes
Pick the question you’re trying to answer.
The catch
The allowance is use-it-or-lose-it: unused allowance doesn’t roll over to the next tax year. Withdrawing money and paying it back in can use up allowance again unless your ISA is “flexible”.
Fees can eat into smaller Stocks and Shares ISA pots. Capital is at risk.
ISA transfer checklist
- Pick the new ISA and check it accepts transfers in.
- Check exit fees, or lost interest on a fixed-rate Cash ISA, before you move.
- Apply through the new provider’s ISA transfer form. They contact your old provider.
- Don’t withdraw the money yourself. If you do, you can’t pay that part back in tax-free.
- Cash ISA to cash ISA transfers should take no longer than 15 working days. Other transfers should take no longer than 30 calendar days.
Source: GOV.UK, Transferring your ISA (checked 4 October 2026).
Who it’s for — and who should avoid it
Who it’s for
- Savers whose interest could go over their Personal Savings Allowance
- Long-term investors who want gains and dividends tax-free
- First-time buyers who can use a Lifetime ISA within its rules
- Anyone who wants to use this year’s allowance before 5 April
Who should avoid it
- Anyone who might need Lifetime ISA money for something other than a first home or later life — the withdrawal penalty can cost you
- People choosing a Stocks and Shares ISA for money they need in the next few years — capital is at risk
- Savers who would pay no tax on interest anyway and can get a higher rate outside an ISA
- Anyone thinking of withdrawing ISA money to move it — use a transfer instead
FAQs
How much can I pay into ISAs in 2026/27?
£20,000 across all your adult ISAs, according to GOV.UK. A Lifetime ISA has its own £4,000 limit inside that. See ISA allowance rules.
Should I use a Cash ISA?
If your savings interest could go over your Personal Savings Allowance, a Cash ISA keeps it tax-free. If it won’t, compare the rate with ordinary savings. See Savings.
Are the April 2027 Cash ISA changes already in force?
No. They have been announced but don’t apply during 2026/27.
Can I lose money in an ISA?
In a Cash ISA, eligible deposits are FSCS-protected. In a Stocks and Shares ISA, investments can fall in value — capital is at risk.
Does unused allowance roll over?
No. Each tax year’s allowance runs from 6 April to 5 April and can’t be carried forward.
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With a Stocks and Shares ISA, investments can fall as well as rise — capital is at risk.