Cash ISAs are the main cash-based tax-free savings product offered by building societies and they are a particular strength of building societies.

An Individual Savings Account (ISA) is not a product in its right but, in effect, a tax wrapper around a savings or investment product, which protects the customer’s interest from being taxed.  Additional flexibility introduced from the 6th April 2024 allows for an individual to invest in multiple ISAs in any single tax year.

Subscription limits

Subscription limits for ISAs for 2024/25 is £20,000.  This full amount can be held in either cash, stocks and shares, or any combination of the two. Individuals are permitted to transfer any funds previously invested in stocks and shares into cash outside of annual subscription limits. 

In the October 2024 Budget it was announced that this limit would remain in place until April 2030.

Further information on ISAs can be found here.

Flexible ISAs

From 6 April 2016 ISA savers have been able to withdraw and replace money from their cash ISA without counting towards their annual ISA subscription limit for that year, as long as the repayment is made in the same tax year as the withdrawal. This enables savers to access their ISA savings more flexibly without losing the benefits they have built up.  This also covers cash held in stocks and shares ISAs.  Flexible ISAs are optional and not all building societies offer them.

Junior ISAs

A tax-free children's savings account - Junior ISAs - were launched in November 2011 as a replacement for the Child Trust Fund. Further information on Junior ISAs can be found in our Junior ISAs factsheet, linked to below.

Junior ISAs - BSA Factsheet

Lifetime ISA

 A Lifetime ISA (Individual Savings Account) can be used to buy your first home or save for later life. Savers must be 18 or over but under 40 to open a Lifetime ISA.

You can put in up to £4,000 each year, until you’re 50. You must make your first payment into your ISA before you’re 40.

The government will add a 25% bonus to your savings, up to a maximum of £1,000 per year.

More details about Lifetime ISAs can be found here.

Additional Permitted Allowances

For information on additional permitted allowances following the death of a spouse or civil partner see our separate factsheet, linked to below.

Additional Permitted Allowances Factsheet