Cash ISAs

A cash ISA, or Individual Savings Account, is a type of savings account that lets you earn interest without paying income tax on it. This makes it a simple and efficient way to grow your money compared to standard savings accounts, where interest may be taxable. You can find out more in our Personal Savings Allowance guide.

Each tax year, you can pay in up to the government’s annual ISA allowance which is currently £20,000. You can also transfer ISAs from other providers into your cash ISA, and these transfers do not count towards your allowance. This means you can combine your savings without losing any tax advantages. 

The bank pays interest on your balance and, because it is an ISA, that interest remains tax-free. There are different types of cash ISAs available, such as fixed rate, which provides a guaranteed return over a set term, and easy access, which allows you to withdraw money whenever you need it. This gives you the flexibility to choose an account that suits your savings goals, whether you prefer certainty or quick access to your funds.

A fixed rate cash ISA is a savings account that pays a guaranteed interest rate over a set term, while also offering tax free savings. At Shawbrook, some fixed rate cash ISAs may allow early withdrawals, but doing so could result in a loss of interest, known as an early exit charge.

A fixed rate bond also provides a guaranteed interest rate for a fixed period, helping protect your savings from changes in market rates. However, unlike a cash ISA, access to your money is usually limited until the bond matures. The interest you earn on a fixed rate bond could be subject to income tax, depending on your personal circumstances, including your Personal Savings Allowance.

Both easy access and fixed rate cash ISAs let you earn interest on your savings without paying income tax. The main distinction lies in how and when you can access your money.

An easy access cash ISA has a variable interest rate and allows you to deposit or withdraw funds at any time, making it ideal if you want flexibility and quick access to your savings.

A fixed rate cash ISA, by contrast, provides a set interest rate for a specific term. This type of ISA is suited to savers who prefer a predictable return and do not need to use their funds before the term ends.

Yes, you can hold both an easy access cash ISA and a fixed rate cash ISA in the same tax year, as long as you stay within the government’s annual ISA allowance, which is currently £20,000. An easy access cash ISA gives you flexibility to deposit or withdraw money whenever you need it, while a fixed rate cash ISA locks your savings away for a set term in return for a guaranteed interest rate.

You can divide your allowance across different ISA types or with other providers if you want to spread your savings. You can open more than one cash ISA with Shawbrook, but your annual allowance cannot be split across multiple Shawbrook cash ISAs in the same tax year. 

Yes, it is sometimes possible to transfer a fixed rate cash ISA before the end of its term, but this may involve a fee or a reduction in interest depending on the account rules.

At Shawbrook, you can either withdraw funds or transfer your fixed rate cash ISA to another provider before maturity, although an early exit charge will apply.

Always check your key product information for the specific terms and conditions of your account.

Benefits of a cash ISA

• Tax-free interest: Any interest you earn on your eligible balance is free from income tax, which could help your savings grow more than in standard accounts.
• Multiple options: Choose from easy access or fixed rate cash ISAs depending on whether you want quick access or a guaranteed return.
• ISA transfers: You can transfer existing ISAs, including those from previous years or other providers, without affecting your current year’s annual allowance. Make sure to follow your provider’s transfer process carefully to ensure your funds remain protected and keep their tax-free status.

Disadvantages of a cash ISA

• Contribution limits: You can only deposit up to the annual ISA allowance each tax year. If you exceed this limit, any additional contributions will not benefit from tax-free interest and your deposit may be returned to you. However, you can still transfer in other ISAs without affecting your ISA allowance.
• Access limitations: Fixed rate cash ISAs require you to keep your money in the account for a set term. Withdrawing funds early could reduce the interest you earn, or incur a charge.

These are just some of the benefits and disadvantages you may want to keep in mind. Whether a cash ISA is right for you depends on your personal circumstances, savings goals, and how you plan to use your money.

A cash ISA can be a useful option if you want to save money in a tax-efficient way, particularly if you have reached your Personal Savings Allowance limit and want your interest to remain tax-free. 

The right type of cash ISA depends on your savings needs. At Shawbrook, we offer fixed rate cash ISAs and easy access cash ISAs:

• Fixed Rate Cash ISA: Offers a guaranteed interest rate over a set term, giving certainty if you don’t need to access your money right away.
• Easy Access Cash ISA: Lets you deposit and withdraw money whenever you like, providing flexibility if you may need access to your savings at short notice.

By considering how and when you want to access your money, you can choose the cash ISA that best matches your financial goals.

Each tax year, you can pay up to the annual ISA allowance into your cash ISA, which is currently £20,000. This limit applies across all the ISAs you hold. You can put the full amount into one or more cash ISA, or split it across different ISA types, such as stocks and shares ISAs.

This government-set allowance only applies to new deposits. Money transferred from previous years’ ISAs or from other providers does not count toward the current year’s allowance.

At Shawbrook, cash ISAs have a minimum balance of £1,000 and a maximum balance of £250,000. New deposits are subject to the annual ISA allowance, and you’ll need to fund your account within 90 days of opening, otherwise it will be closed. 

You can have more than one cash ISA, and you may also hold cash ISAs from previous tax years at the same time.

Each tax year, you must stay within the government’s annual ISA allowance for new deposits. Transfers from other ISAs or deposits from previous years do not count towards this limit.

At Shawbrook, you can open more than one cash ISA in the same year, but you cannot use your annual ISA allowance across more than one Shawbrook Cash ISA in the same tax year. You can still transfer money from other ISAs into a Shawbrook Cash ISA, and these transfers do not count towards your current year’s allowance.

Whether you choose to open a new ISA each tax year depends on your savings goals. If you want to take full advantage of the new annual ISA allowance, opening a new ISA or adding to an existing eligible account each year may be beneficial. If you are happy with your current savings, continuing with your existing ISA may be sufficient.

Transfers from current or previous years’ ISAs, or from other providers, do not count towards your current year’s allowance.  

The Annual ISA Allowance is a government-set limit for investments in ISAs, allowing savers to earn tax-free interest.

In the current tax year, you can invest up to £20,000 across multiple ISAs with different providers at the same time. If you do not use your allowance by 5 April, any unused amount will not carry over to the next tax year. This allowance does not apply to ISA transfers. 

For further information, see our guide on the ISA Allowance and how it works. 

Your Personal Savings Allowance (PSA) is the total amount of interest you can earn across all of your accounts (excluding ISAs) without paying tax, each year.

Your PSA depends on your taxable income:

• Basic-rate taxpayers (20%) can earn up to £1,000 in interest per year tax-free
• Higher-rate taxpayers (40%) can earn up to £500 of savings interest per year tax-free
• Additional-rate taxpayers (45%) are not eligible for a PSA  

Visit the Government’s website for more information.

Withdrawing money from an ISA and then moving it into another savings account can affect your tax-free savings. Any funds withdrawn into a non-ISA account lose their ISA tax-free status, and if the money was deposited in the current tax year, it may also reduce the amount you can contribute to an ISA under the Annual ISA Allowance.

By contrast, transferring your ISA directly to another ISA keeps the funds within the ISA wrapper, so your tax-free benefits are maintained.

Flexible ISAs work differently: they allow you to withdraw and replace money during the same tax year without reducing your annual allowance. Shawbrook does not currently offer flexible ISAs.

It is important to consider your personal circumstances before making withdrawals or transfers, and whether a transfer is the best way to maintain the tax-free status of your savings.

For more guidance, see:

• Depositing and withdrawing money
• Annual ISA Allowance

Transferring an ISA is a straightforward process, provided you follow the correct steps to maintain your tax-free benefits. Before starting the transfer, you may find it helpful to see our guidance on the differences between withdrawing and transferring an ISA. 

Transferring an ISA from another provider to a Shawbrook ISA
To transfer an existing ISA from another provider to a new Shawbrook ISA you will need complete the online ISA application form. If your provider is not part of the Electronic Transfer Scheme, a separate form is required for a manual transfer. This form should be used once you’ve opened your Shawbrook Cash ISA to complete the transfer process.

For more information on how to transfer to a Shawbrook cash ISA, visit our Guide to Transferring ISAs. 

As part of your application process, we will capture the details of your current ISA. We will then work with your existing ISA provider to complete the transfer for you, and you'll keep your ISA tax-free status benefits.

To transfer money into a Shawbrook ISA that’s newly opened please contact our friendly Savings Team by phone, or log in and send us a secure message.

At Shawbrook, we accept transfers from Cash ISAs or Stocks and Shares ISAs. Cash ISA transfers typically take 4 to 5 working days but can take up to 15 working days. Stocks and Shares ISA can take up to 30 calendar days.  

Transferring from one Shawbrook ISA to another Shawbrook ISA 
To transfer your Shawbrook ISA to another Shawbrook ISA please contact our friendly Savings Team by phone, or log in and send us a secure message and we will complete the transfer. 

Transferring a Shawbrook ISA to another provider  
If you want to transfer your Shawbrook ISA to a new provider, you need to follow their process for transferring ISAs to them. The information your new ISA provider asks for may vary, but in general you will need to provide a sort code and account number of your Shawbrook ISA. 

Your account number - You can find your account number by logging in to your account. Your account number is displayed on the home screen next to your account name. 

Your sort code - Our sort code is 16-58-73. This is the same sort code used on all Shawbrook savings accounts.  

Other references - Your new provider may ask you for information like a roll number or reference number. We don't use role numbers or reference numbers, so you can leave this blank if your new provider asks for it.

What happens next  
Your new provider will manage the transfer, confirm next steps and let you know if they have any questions. They'll also confirm when the transfer is complete.  

Partial Transfers 
You can make partial transfers of funds that were deposited in previous tax years. If your ISA contains both current and previous year contributions, you can choose whether or not to transfer your current year’s funds. However, if you do decide to transfer them, you will need to transfer the current year’s funds in full. Previous year funds can be left in your Shawbrook ISA or transferred separately.

For detailed step-by-step instructions, visit our guide on how to transfer an ISA. 

You can open an ISA with us if you are:  

• Aged 18 or over  
• A permanent resident in the UK (excluding Channel Islands, Isle of Man and other Crown dependencies)  
• Only liable to pay tax in the UK  

You can open more than one ISA with Shawbrook in the same tax year. However, you cannot use your annual ISA allowance across more than one Shawbrook Cash ISA in the same tax year. You can still transfer money from other ISAs into a Shawbrook Cash ISA, and these transfers do not count towards your current year’s ISA allowance.  

You cannot open a cash ISA acting on behalf of an account holder with power of attorney, guardianship or an intervention order.

You can find a full breakdown of the Cash ISA eligibility criteria on our Cash ISAs page, within the subsequent Cash ISA product pages:  

• Easy Access Cash ISA 
• 1 Year Fixed Rate Cash ISA 
• 2 Year Fixed Rate Cash ISA 
• 3 Year Fixed Rate Cash ISA 
• 5 Year Fixed Rate Cash ISA 
• 7 Year Fixed Rate Cash ISA 

If your circumstances change you must let us know immediately. 

When adding money to your Cash ISA be sure to not exceed the maximum account balance limit or your annual ISA allowance.

Shawbrook Fixed Rate Cash ISAs and Easy Access Cash ISAs have minimum opening balance of £1,000. Fixed Rate Cash ISA has a maximum balance limit of £250,000 and Easy Access Cash ISA has a maximum limit of £500,000.

Your annual ISA allowance is £20,000, which you can save across multiple accounts with different providers. You can open more than one Cash ISA with Shawbrook in the same tax year. However, you cannot spread your £20,000 allowance across more than one Shawbrook ISA in the same tax year. You can still transfer money from other ISAs into a Shawbrook Cash ISA, and these transfers do not count towards your current year’s ISA allowance.

For more information visit our pages below:

• Cash ISA Allowance for 2025/2026
• How to make a deposit into your account

When withdrawing funds from an ISA, it is important to be aware of the specific rules that apply. Depending on the type of ISA held, there may be charges associated with withdrawals. Even if withdrawals can be made without incurring an early exit charge, it is essential to consider the potential impact on your tax-free ISA Allowance. 

Fixed Rate Cash ISA 

If you have a Fixed Rate Cash ISA, you can make withdrawals or close your account before maturity, but this will be subject to a loss of interest, known as an early exit charge. 

The amount will depend on the product you take. Below is a summary of the early exit charges applicable for our Fixed Rate Cash ISAs. 

• 1 Year Fixed Rate Cash ISA: loss of 90 days’ interest on the withdrawn amount 
• 2 Year Fixed Rate Cash ISA: loss of 180 days’ interest on the withdrawn amount 
• 3 Year Fixed Rate Cash ISA: loss of 270 days’ interest on the withdrawn amount 
• 5 Year Fixed Rate Cash ISA: loss of 360 days’ interest on the withdrawn amount 
• 7 Year Fixed Rate Cash ISA: loss of 360 days’ interest on the withdrawn amount 

When your Fixed Rate Cash ISA matures, you can reinvest with us, withdraw your money, or transfer it elsewhere. We'll write to you before your maturity date to remind you of your options.  

For more information on Fixed Rate Cash ISAs, visit our pages below: 

• Cash ISAs  
• Fixed Rate Savings Accounts  

Easy Access Cash ISA 

You won't be charged an early exit charge if you withdraw money from your Easy Access Cash ISA. 

There are no limits to the number of withdrawals you can make with an Easy Access Cash ISA, but the account is subject to a minimum withdrawal amount of £500 and minimum account balance of £1,000. You should also consider the potential impact of withdrawals on your tax-free ISA allowance; this is detailed below. 

For more information on Easy Access Cash ISAs, visit our pages below: 

• Cash ISAs  
• Easy Access Savings Accounts  

ISA Allowance  

If you withdraw money from an ISA into a non-ISA, before then placing it into another ISA, the money will lose its tax-free status.

In addition, if the money was deposited in the same tax-year, it may reduce how much money you can pay back into an ISA during that tax-year given the Annual ISA Allowance of £20,000.  

Transferring from one ISA to another ISA ensures you maintain ISA tax-free status benefits.  

Flexible ISAs are the exception. A flexible ISA allows the withdrawal and replacement of money during the same tax year, without affecting your Annual ISA allowance year. Shawbrook does not offer flexible ISAs. 

Please consider your individual circumstances, and if it would be best to undertake the ISA transfer process to ensure your money maintains its tax-free status.  

For more information, on Cash ISAs including allowances, withdrawals, and transfers visit our pages below: 

• 2025/2026 Cash ISA Allowance 
• Withdrawing Money from ISAs 
• Transferring an ISA to Shawbrook Bank