Insights for Savers

Changes to ISA rules: what it means for you in 2026

Savings 3 min read 12/02/2026

Key takeaways

  • Cash ISA rules in 2026 give savers more flexibility, including the ability to open and contribute to multiple Cash ISAs with different providers in the same tax year.
  • You can spread your £20,000 annual ISA allowance across several Cash ISAs, provided you do not exceed the overall limit.
  • Partial transfers of current-year Cash ISA contributions are now allowed, making it easier to move savings to better interest rates without affecting your allowance.
  • ISAs no longer need to be reactivated each year, accounts remain open even if you skip a year of contributions.
  • While the £20,000 ISA allowance stays the same for 2026/27, savers should prepare for new Cash ISA limits starting in April 2027, including a £12,000 Cash ISA cap for under-65s.

The rules for Cash ISAs have evolved in recent years to give savers more control and flexibility. Understanding these changes can help you plan contributions, transfers, and long-term savings strategies efficiently for the 2026/27 tax year, while preparing for planned updates in 2027/28.

Whether you’re reviewing existing ISAs or considering opening new accounts, knowing how the rules work ensures you make the most of your tax-free savings.

 

Can I open ISAs with multiple providers in 2026? 

As introduced from 2025, you can now hold multiple Cash ISAs across different providers, rather than being limited to one account of each type per tax year. This allows you to:

Tip: Keep track of contributions to make sure you don’t exceed your annual allowance.

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Can I transfer part of my current-year ISA?

Previously, transferring your current-year ISA required moving either all or none of your contributions. Now, you can transfer part of your Cash ISA to another provider. Benefits include:

  • Moving funds to accounts with better interest rates
  • Retaining full control over your savings
  • Keeping your annual allowance intact
  • Partial transfers are especially useful if you have contributed to multiple ISAs during the same tax year.

 

Do I need to reapply for an ISA each year?

No. The previous requirement to reapply if you skipped a year of contributions has been removed. This means:

  • Your ISA stays active even if you miss a year of saving
  • Less administrative hassle for managing multiple accounts

 

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What’s changing in 2027?

From 6 April 2027 (2027/28 tax year), the government plans to introduce a Cash ISA cap for under-65s:

  • Maximum contribution to a Cash ISA: £12,000 per year for under-65s
  • Overall ISA allowance remains £20,000, meaning you can still use the remainder in Stocks & Shares ISAs, Lifetime ISAs, or Innovative Finance ISAs
  • Individuals 65 and over can continue to contribute up to £20,000 to Cash ISAs

Other changes include enhanced reporting requirements and potential limits on certain transfers between account types, designed to prevent circumvention of the Cash ISA cap.

Knowing this ahead of time can help you plan contributions and transfers strategically for 2027 and beyond.

 

Achieve your savings goals with Aldermore

Aldermore offers a range of Cash ISAs to help you take full advantage of current rules and prepare for future changes:

  • Easy Access Cash ISA: Flexible deposits and withdrawals.
  • Notice Cash ISA: Higher rates for planned withdrawals.
  • Reward Cash ISA: Higher interest for limited access.
  • Fixed Rate Cash ISA: Guaranteed rate for a fixed term.

These accounts allow you to align your ISA with short- and medium-term goals, manage multiple providers, and position your savings for both the current £20,000 allowance and the upcoming 2027 Cash ISA cap.

Explore Aldermore Cash ISAs