30 March 2026
ISAs (Individual Savings Accounts) are one of the easiest ways to save or invest tax-free. For years, the rules have been simple:
- You can put in up to £20,000 each tax year.
- You don’t pay tax on the interest or investment growth.
- You can split your allowance across different types of ISAs– like Cash ISAs or a Stocks & Shares ISA.
Easy.
But from April 2027, things are set to shift for many. And if most of your savings sit in Cash ISAs, these new rules could change how you do things.
Here’s the bigger picture – and what it could mean for you.
What’s changing?
From April 2027, your total ISA allowance stays at £20,000 each tax year.
But how you can use that allowance might change:
- If you’re aged 18-64 you can only put £12,000 into a Cash ISA each tax year.
- If you’re 65 or over – nothing changes. You can still put £20,000 into a Cash ISA.
It’s only Cash ISAs that are affected. If you’re under 65, you can still put up to £20,000 into a Stocks & Shares ISA (or an Innovative Finance ISA). But you can only put £12,000 of your £20,000 allowance into a Cash ISA.
Why is this happening?
The government’s thinking is fairly simple. They want more people investing and fewer people holding large amounts purely in cash savings.
Right now, Cash ISAs are far more popular than Stocks & Shares ISAs. From the government’s point of view, that’s money sitting still – when it could be invested in businesses and helping drive economic growth.
So yes, this change is designed to shift behaviour. But it’s not about what suits the government – it’s about what suits future you. And if you haven’t reviewed your ISA plans in a while, this could be the perfect opportunity to do it.
Four smart moves to think about
1. Use your allowance before it shrinks
If you’re aged 18-64 and use most – or all – of your annual £20,000 allowance in Cash ISAs, the 2026/27 tax year could be your last chance to do this.
Even if you don’t have £20,000 sitting ready, putting in what you can means more of your savings grow tax-free. Small moves now could make a real difference over time.
If you want to see how you could make the most of your ISA allowance, check out our ISA Hub.
2. Choose the right type of Cash ISA for your goals
Not all Cash ISAs are the same.
If you need quick access to your money, an Easy Access ISA gives flexibility.
If you can tuck money away for a set period, a Fixed Rate ISA might pay more interest.
It all comes down to your plans.
Saving for a big holiday or a new car? Stay flexible.
Putting money away for something further down the line? A fixed rate could work harder for you – but this would involve locking your money away.
The right account depends on what you need your money to do.
Take a look at our range of options now
3. Get help deciding what to do
Sometimes the hardest part isn’t picking an account. It’s knowing what actually makes sense for you.
A My Money Review lets you chat with a savings specialist about your goals and get personalised recommendations. There’s no pressure to act – and it’s completely free.
You can do it at your nearest Skipton branch or online using our Skipton Link video service. It usually takes less than an hour, and it can set you up for making smarter choices when it comes to your money.
It could help you answer questions like:
- Am I holding too much in cash savings?
- Am I missing out on potential growth?
Most importantly, it can give you clarity. And clarity leads to better decisions.
4. Don’t rule out investing just yet
These new rules don’t mean completely ditching your Cash ISA. But the changes do give you a chance to think about what you do with your money.
Ask yourself, is your money setup for what you actually want?
Not what feels easiest. Not what you’ve always done. But what fits your goals now.
You don’t need to dive in overnight. But if you have long-term goals – retirement, helping family, building wealth – investing could make a difference.
In our view, cash and investments both have a role to play:
- Cash gives you stability. It’s there for emergencies, short-term plans and peace of mind. Things usually coming up in the next 1-5 years.
- Yes, investments rise and fall. Yes, investing comes with risk. But over the long-term, history shows that investing tends to deliver more growth than cash alone. So it’s worth considering for things that are still 5+ years away.
If you’d like to find out if investing is right for you, we can arrange a no-obligation review with one of our financial advisers. You could get personalised financial advice that helps you plan for your long-term goals – including making the most of a Stocks and Shares ISA.
So where does this leave you?
ISAs are still one of the most powerful, tax-efficient tools available to you. That hasn’t changed. What is changing is how flexible Cash ISAs will be for many people.
The best move?
Don’t wait until April 2027 to think about it:
- Make the most of the current rules while they’re here.
- Review how your money is split between saving and investing.
- Make sure your money has a job – and is doing it well.
Because at the end of the day, this isn’t just about the government’s policy update. It’s about you and what you want your money to achieve next.
Investing usually gives you better returns than a savings account over time (five years or more). But the value of your investments can go up and down, so you could get back less than you put in.
Any tax you pay on your savings or investments depends on your own situation – and rules could change.
