UK households face a strict annual cap on ISA savings, set at £20,000 for the 2025/26 tax year. This limit covers all ISA types, including Cash ISAs, Stocks and Shares ISAs, Lifetime ISAs, and Innovative Finance ISAs.
Understanding the £20,000 Allowance
Official guidance confirms that savers can deposit up to £20,000 in ISAs during the 2025 to 2026 tax year. This amount can go into a single account or split across multiple ISAs. The tax year spans from April 6 to April 5.
Flexibility with Multiple ISAs
Savers now enjoy greater choice, with rules updated since April 2024 allowing multiple Cash ISAs or Stocks and Shares ISAs in the same tax year. The key condition remains: total contributions cannot exceed £20,000 across all accounts.
Top Market Rates for Cash ISAs
Current leaders include Trading 212’s variable easy-access Cash ISA, offering 4.43% for the first year before dropping to 3.6%—rates subject to change. For fixed options, Close Brothers provides 4.08% locked for one year.
Key Tax Year Rules
Once a tax year ends, any unused allowance expires permanently. For instance, contributions from the prior 2023/24 year cannot carry over. Deposits made within the year grow tax-free indefinitely, with a fresh £20,000 allowance available from April 6 each year.
