Cash ISAs

Tax-free savings without the jargon. Whether you're saving for a rainy day, a holiday, your children’s future or your dream home. We've got ISAs to suit your needs. Save up to £20,000 tax-free this tax year. Choose an ISA that works for you.

Compare our best cash ISA rates

What is a cash ISA?

A cash ISA is simply a savings account with tax benefits. Your money earns interest just like any savings account, but you don't pay tax on that interest - no matter how much you earn. It's the most popular type of ISA because it's straightforward and your money is secure. Learn more about cash ISAs.

When is the tax year?

The tax year runs from 6 April to 5 April, and you must use your allowance within this period - it doesn't roll over to the next year. If you don't use it, you lose it.

ISA allowance

What is the ISA allowance per year?

Your ISA allowance is the maximum amount you can save tax-free across all your ISAs in one tax year (6th April – 5th April) For the current tax year, this limit is £20,000.

• ISA allowance: £20,000 (current tax year).
• Lifetime ISA limit: £4,000 per tax year.
• Junior ISA allowance: £9,000 per tax year.

For more information you can read our ISA allowance guide.

Cash ISA types at Nottingham Building Society

We offer a range of cash ISAs for different saving needs. Read about each cash ISA you can open with us below.

Fixed rate ISA

What is a fixed rate ISA?

With a fixed rate ISA you can lock in a guaranteed interest rate for a set period. Choose from 1, 2, 3 or 5-year terms. Your rate won't change, meaning you’ll know exactly how much interest you’ll earn tax-free.

• Good for lump sum deposits you won’t be needing for a while.
• You’ll be protected from any potential falling interest rates.
• You won’t be able to access your money until the fixed term on your ISA ends.

Example: Michelle has £15,000 she won't need for 2 years. By choosing a 2-year fixed rate ISA, she knows exactly how much interest she'll earn and won't be tempted to spend it on impulse purchases.

Rules:

• Guaranteed fixed interest rate.
• Terms from 1 to 5 years.
• Interest earned is tax free.

Flexible ISA

What is a flexible ISA?

With a flexible ISA you can take money out and put it back in during the same tax year without losing your ISA allowance.

• Good for withdrawing funds whenever you need. No early withdrawal charges.
• Ability to put money back into the same ISAs within the same tax year without it counting towards your annual £20,000 limit. 
• Ideal for irregular savers who might need to top up or reduce their savings throughout the year. Serves as an excellent emergency fund since you maintain instant access while keeping your money in a tax-efficient wrapper

Example: Sarah's building an emergency fund but worried she might need access. With our flexible ISA, when she withdrew £2,000 for car repairs in September, she could put it back in December without affecting her £20,000 annual allowance.

Rules:

• Replace withdrawals without losing your ISA allowance.
• No withdrawal penalties.
• Instant access to your money.
• Manage in branch only.

Easy access ISA

What is an easy access ISA?

An easy access ISA is a straightforward tax-free savings account with instant access whenever you need your money. No restrictions on when or how much you can withdraw.

• Good for withdrawing money immediately whenever needed without notice periods or restrictions. 
  
  • Please remember, unlike a flexible ISA, you cannot replace your funds once you have deposited this come out of your ISA allowance for the tax year. 
• Unlike fixed rate ISAs, there are no charges or loss of interest for taking money out.
• Ideal for keeping your emergency savings accessible while still benefiting from tax-free interest growth.

Example: James keeps £5,000 in his easy access ISA as a "just in case" fund. Whether it's home repairs, holiday booking, or helping family - he knows his money is there when he needs it, earning tax-free interest.

Rules:

• Instant access to your savings.
• No notice period required to withdraw your savings.
• No minimum balance requirements.
• Variable interest rate. This means your rate could go up or down and is not fixed.

Lifetime ISA

What is a Lifetime ISA?

In a Lifetime ISA you can save for your first home or retirement with a 25% government bonus. Save up to £4,000 per year and the government adds up to £1,000 annually.

• Good for first-time buyers trying to get on the property ladder.
• Can provide as an additional savings pot for retirement, with tax free withdrawals from age 60. 
• Once opened before the ag of 40, you can continue contributing until the age 50. 

Example: Tom and Lisa are saving for their first home. They each save £300 monthly in Lifetime ISAs. After 3 years, they'll have saved £21,600, but with government bonuses, they'll actually have £27,000 towards their deposit.

Rules:

• 25% government bonus on contributions.
• Save up to £4,000 per year.
• Use for first home purchase or retirement.
• Must be 18-39 to open.

Junior ISA

What is a junior ISA?

Start your child's savings journey early. Anyone can pay into a Junior ISA for a child, and the money becomes theirs at 18. Tax-free growth until they're adults.

Only the person(s) who has parental responsibility can open a Junior ISA for their child.

• Good for building a substantial savings pot over 18 years for your child 
• Helping children understand saving and encourages developing a savings habit from an early age 
• Provides another meaningful way for extended family and friends to contribute to a child’s future. 

Example: Parents John and Mary put £100 monthly into their daughters Junior ISA. By her 18th birthday, with contributions from family and tax-free growth, she'll have a substantial sum for university or her first home.

Rules:

• Save up to £9,000 per tax year for a child.
• You must have parental responsibility of the child. 
• Anyone can contribute (parents, grandparents, friends).
• Child gains control of the account at 18.
• Tax-free growth for up to 18 years.

Cash ISA rules:

To open a cash ISA with Nottingham Building Society you will need to be eligible by following the Cash ISA rules. Here is the breakdown.

• You must be 18 or over to open a cash ISA 
  
  • if you’re opening a Lifetime ISA you must also be under 40
    individuals under 18 can have a Junior ISA but can only be opened by someone who has parental responsibility of the child. Once the child turns 18 they can have access to the account. 
• You must be a UK resident for tax purposes. Crown employees, or those married or in a civil partnership with a Crown employee may also qualify.
• You can only pay into one cash ISA per tax year with us. 
• Your cash ISA will be held in your name only (Joint accounts are not allowed).

How to open a cash ISA at Nottingham Building Society

You can open our Cash ISAs online by downloading our app or visit one of our branches. 

What you'll need:

• Valid photo ID (passport or driving licence).
• Proof of address (utility bill or bank statement).
• National Insurance number.
• Minimum opening deposit (this varies for different cash ISAs).
• Details of any existing ISAs you want to transfer to us.