ISA FAQs
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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. You can check a firm’s details on the FCA Register.
FSCS protects eligible deposits up to £120,000 per person, per authorised institution.
Quick answer
Short answers to the ISA questions we’re asked most: how much you can pay in, how transfers work, what “flexible” means and how the different ISA types fit together.
Never withdraw cash yourself when transferring an ISA — always use your new provider’s official ISA transfer service to preserve your tax-free status.
Who it’s for
- Anyone opening their first ISA or reviewing existing ones
- Savers moving an ISA between providers
Who should skip it
These are general points to weigh up, not advice. You may want to look elsewhere if:
- You need personal tax advice — speak to HMRC or a qualified adviser
The catch
Withdrawing from an ISA and paying the money into another provider usually loses the tax-free status of that money and uses up new allowance. Use the official transfer process instead.
Full explanation
ISAs are tax wrappers: what you hold inside them — cash, investments or peer-to-peer loans — keeps its tax-free status for as long as it stays in an ISA. Our ISAs guide explains each type.
Figures set by the government were correct as of 3 October 2026. Check GOV.UK before relying on them.
FAQs
How much can I pay into ISAs this tax year?
The ISA allowance for the 2026/27 tax year is £20,000, shared across all your ISAs.
Can I have more than one ISA?
Yes. You can keep ISAs from earlier years, and you can split this year’s allowance across different ISAs and providers.
What is a flexible ISA?
A cash ISA that lets you withdraw and replace money in the same tax year without using extra allowance. Not every ISA is flexible.
How do I transfer an ISA?
Ask your new provider to arrange the transfer. Don’t withdraw the money yourself, or it may lose its tax-free status. See how to transfer an ISA.
Do ISA transfers count towards my allowance?
No. Transferring money already in an ISA doesn’t use this year’s allowance.
Is the cash ISA limit changing?
The government has announced that from 6 April 2027, people under 65 will be able to put up to £12,000 a year into cash ISAs within the £20,000 overall allowance.
What is a Lifetime ISA?
An ISA for people aged 18 to 39 saving for a first home or later life, with a £4,000 yearly limit and a government bonus. See Lifetime ISA rules.
Can children have an ISA?
Under-18s can have a Junior ISA, which has its own allowance and doesn’t count towards yours.
Is money in a cash ISA protected?
Eligible deposits are protected by the FSCS up to £120,000 per person, per authorised bank or building society.
Track this year’s allowance or compare cash ISAs.
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