Each tax year, you can save up to £20,000* into ISAs. This is called your annual allowance and is set by the government. Your annual allowance applies each tax year – starting from 6 April and ending 12 months later on 5 April.

It’s key to remember that if you don’t use your full annual ISA allowance in a tax year, any remaining allowance won’t roll over into the next tax year. But the good news is your allowance will reset every 6 April when the new tax year begins.

Unlike traditional savings accounts, ISAs don't count towards your Personal Savings Allowance (PSA). This is an amount of interest you can earn on your non-ISA savings before it’s subject to any tax. You can find out more about PSA in our blog Back to basics – the Personal Savings Allowance.

And while you can open multiple ISAs in the same tax year, you can only pay into one cash ISA with us**. 

Make the most of flexibility

Some cash ISAs come with a certain amount of flexibility, meaning you can sometimes withdraw money from your ISA and replace it later without it impacting your annual allowance. This could give you the opportunity to book your dream trip and still rebuild your savings before the tax year ends.

Plan for your sunny days
Link your ISA contributions to your future goals. Whether ‘flashpacking’ is high on your wanderlust wish list, or you want to use your savings to enjoy hobbies like golf or restoring classic cars, cash ISAs can help you create a brighter future.

An ISA can be a useful way to build savings while benefitting from tax-free interest. Whether you are saving steadily or making a one-time deposit, reviewing your ISA contributions can help you optimise your allowance.

To learn more on how to make the most of your tax-free allowance, take a look at our helpful guide Making sense of ISAs below.