Best Savings Options for the New Tax Year UK 2026/27

Last updated 7 April 2026

Every April, we go through the same routine. The ISA allowance resets, savings rates shift, and there is a brief window where everyone actually pays attention to where their money is sitting. The best savings options for the new tax year are worth sorting now, before the motivation fades and another 12 months slip by. Here is what the CoolCuration team is doing with ours this year, along with a look at the platforms and accounts worth considering right now.

This year there is an added urgency. The 2026/27 tax year is the last year under-65s can put the full £20,000 into a cash ISA. From April 2027, cash ISA contributions will be capped at £12,000 for anyone under 65, with the remaining £8,000 needing to go into stocks and shares or other ISA types. So if you have been meaning to top up your cash ISA, this is genuinely the final window at the current limit.

Important: this is not financial advice. This article is for informational purposes only. Nothing in this post constitutes a recommendation to open any particular account, invest in any product, or take any specific financial action. Savings rates, ISA rules, and tax treatment can change at any time. CoolCuration is not authorised or regulated by the Financial Conduct Authority and cannot advise you on what is right for your circumstances. Always do your own research or speak to a qualified, independent financial adviser before making financial decisions. Some links in this article are referral links. Using them costs you nothing and helps support CoolCuration.

What has changed for 2026/27?

First, the headline: your ISA allowance is still £20,000. That has not changed since 2017, and despite rumours ahead of the Spring Statement, it stayed put. However, some significant shifts are now locked in for the year ahead and beyond.

The Bank of England base rate sits at 3.75%, held there since the March 2026 decision. With the ongoing conflict in the Middle East pushing up energy prices, rate cuts that were expected earlier in 2026 are now on hold. The next decision is due on 30 April 2026. For savers, this means rates are still relatively decent compared to a few years ago, even if they have come down from the 2023 peaks.

Since April 2024, you can open and contribute to multiple ISAs of the same type in the same tax year. So you could, for example, open a Monzo cash ISA and a Trading 212 cash ISA and split your allowance between them. As a result, there is no need to put all your eggs in one basket.

Your Personal Savings Allowance (PSA) is also back to full: £1,000 of interest tax-free for basic rate taxpayers, £500 for higher rate taxpayers. If you earn below those thresholds, you technically do not need a cash ISA for tax purposes right now. But the ISA shields future growth if rates change or your balance grows, making it worth using regardless.

And then the big one: from April 2027, under-65s will be restricted to putting just £12,000 into cash ISAs per year. The remaining £8,000 of your allowance would need to go into stocks and shares or other ISA types. This is confirmed government policy following the 2025 Autumn Budget. If you like the simplicity of cash savings, use this year while you still can.

Cash ISAs: still worth it?

The answer depends on your tax band and how much you have saved. If you are a basic rate taxpayer with less than about £25,000 in savings (at current rates), your PSA probably covers all the interest you earn anyway. In that case, a cash ISA is less about immediate tax savings and more about future-proofing.

For higher rate taxpayers, the maths changes quickly. With a PSA of just £500, it only takes around £13,000 at 4% interest to breach that limit. If you are in that bracket and have meaningful savings, a cash ISA is a no-brainer.

Either way, given the April 2027 cap, there is a strong case for maximising your cash ISA now while you can still put the full £20,000 in. One of us moved their cash ISA from a high street bank paying 2.8% to a newer provider offering over 4%. That took about ten minutes, and the difference over a year on £20,000 is roughly £240. Easiest money any of us made this month.

The best easy-access cash ISA rates right now sit around 4.5% to 4.6%, typically from newer fintech providers. Fixed-rate ISAs range between 4% and 4.5% depending on the term. For our full ongoing comparison, see our best savings accounts page.

Monzo

Monzo offers two cash ISA options. The Instant Access Cash ISA pays up to 3.25% AER (variable) depending on your plan. Free account holders get 2.75%, while Perks (£7/month) and Max (£17/month) subscribers earn the full 3.25%. Withdrawals are unlimited and instant.

The more interesting option is the Select Access Cash ISA, which pays up to 3.65% AER if you limit yourself to two withdrawals per year. There is a £500 minimum deposit to open. For money you are genuinely setting aside, this is the better pick. If you make a third withdrawal, the rate drops temporarily but you can still access your money instantly, which is a sensible safety net.

Monzo also has its Saving Challenge running for 2026, which automatically saves small daily amounts into a dedicated pot. Paid plan holders earn 5% on their Challenge Pot balance and enter monthly prize draws for £100. It is a nice nudge if you struggle to save consistently, though it is separate from the ISA products.

Where Monzo really shines is the ability to organise your ISA into multiple pots within the same account. You can have both Instant Access and Select Access pots under one cash ISA umbrella, which keeps things tidy without needing separate providers for different goals. All eligible deposits are FSCS protected up to £120,000.

From our experience, the Monzo app makes setting up a cash ISA genuinely quick. It took one team member under five minutes. The rates are not the highest on the market, but if you already bank with Monzo and want everything in one place, it is a solid option.

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Chase UK

Chase does not currently offer a cash ISA. What it does offer is a straightforward savings account paying a competitive rate, plus its Saver Rewards feature. The savings account sits within the Chase app alongside its fee-free current account, which is popular for its 1% cashback on everyday spending.

For those who just want an easy-access savings account without the ISA wrapper, Chase remains a strong option. However, bear in mind that interest earned here counts towards your Personal Savings Allowance. If you are looking for tax-free savings specifically, you will need to look elsewhere for the ISA.

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Zopa

Zopa's Smart ISA lets you split your allowance across easy-access and fixed-term ISA pots within a single account. The standard Access ISA pot pays 3.25% AER (variable). However, if you open a new boosted-rate Access ISA pot before 5 May 2026, you can get 3.75% AER (including a 0.50% fixed bonus until April 2027). That is a decent bump for simply opening early in the tax year.

Fixed-term ISA pots go up to 4.05% AER for one year. If you are comfortable locking money away, that is a competitive rate. Zopa also has a regular saver (not an ISA) with attractive rates for disciplined monthly savers.

The flexibility of the Smart ISA is the main draw. You can have a mix of easy-access and fixed pots, and it is a flexible ISA, so withdrawals and replacements within the same tax year do not eat into your allowance. FSCS protected up to £120,000.

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Chip

Chip has been building out its savings range steadily. The Chip Cash ISA pays 3.55% AER (variable tracker, tracking 0.26% below the base rate). New customers get a 12-month boost bringing it to 3.81% AER. It is flexible, instant access, and there are no withdrawal penalties.

Chip has also just launched a Smart Cash ISA for the new tax year, which sits at around 3.75% AER. This is provided through Chip Financial (Investments) Limited rather than ClearBank, so worth checking the detail in the app.

The real standout feature with Chip is auto-saving. Connect your bank account and Chip analyses your spending, then quietly moves small amounts into savings when it calculates you can afford it. It is surprisingly effective for anyone who means to save but never quite gets round to it. The Prize Savings Account is also worth a mention: it works like a cash savings account but enters you into monthly prize draws with tax-free winnings. Think of it as a lighter alternative to Premium Bonds.

One thing to note: Chip's savings accounts are all powered by ClearBank, which means deposits across the Cash ISA, Instant Access, Easy Access Saver, and Prize Savings Account share a single £120,000 FSCS limit.

If you are new to Chip, you can get £50 when you deposit £5,000 or more into an eligible account and hold it for 90 days. Check our Chip referral page for full terms and how to claim.

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Trading 212

Trading 212 offers one of the more interesting setups for savers who want flexibility. Their Cash ISA pays 3.60% AER as standard (variable, tracking 0.15% below the base rate). New customers can get a promotional rate of around 4.58% AER for the first 12 months, which includes a 0.98% bonus on current-year contributions.

The Cash ISA is fully flexible with instant access, no fees, no minimum balance, and interest accrues daily (paid monthly). It is one of the simplest cash ISAs on the market.

But here is where Trading 212 gets clever. Because they also offer a Stocks and Shares ISA on the same platform, you can hold cash in the ISA wrapper while deciding what to do with it. Uninvested cash in the investment account earns around 3.80% AER automatically via qualifying money market funds. So even if you are using Trading 212 primarily for investing, your idle cash is still working.

One of our team uses an alternative approach entirely: holding the £CSH2 SONIA tracker ETF inside a Freetrade Stocks and Shares ISA. This ETF tracks the Sterling Overnight Index Average, which closely mirrors the Bank of England base rate. With the base rate at 3.75% and a fund fee of 0.10%, the effective return is approximately 3.65%. The appeal is that it sits inside an investment ISA, so you can sell it when you want to buy actual stocks, keeping everything within the tax-free wrapper. It is not a savings account, your capital is technically at risk, and it suits people who are comfortable with the investment ISA environment. But as a parking spot for cash earmarked for future investing, it works well.

Capital at risk. The value of investments can go down as well as up. You may get back less than you invest.

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Other options worth knowing about

A few more names to have on your radar:

The First Direct Regular Saver pays a headline rate of 7%, which is eye-catching. However, it is not an ISA, you can only save up to £300 per month, and the rate is only guaranteed for 12 months. It is great for disciplined monthly saving alongside an ISA, but it will not shelter your money from tax.

Sidekick is a newer player offering an ISA, but it only holds stocks or bonds within it, so there is no cash ISA option. If you are already comfortable with investment risk, it could be worth exploring. For cash savings specifically, it is not the right fit.

In the wider market, the best easy-access cash ISA rates from specialist providers are reaching 4.5% and above. Names like Plum, Tembo, and Atom Bank appear regularly at the top of comparison tables. If maximising your rate is the priority and you do not mind banking with a less familiar name, these are worth checking on MoneySavingExpert's best cash ISA page.

Stocks and Shares ISA: worth considering?

If you are saving for something five or more years away, there is a case for putting at least part of your ISA allowance into a Stocks and Shares ISA. Historically, investing over long periods has outperformed cash savings, though past performance is never a guarantee and your capital is at risk.

For a hands-off managed approach, JPMorgan Personal Investing offers professionally managed portfolios at different risk levels. You choose a portfolio, deposit your money, and they handle the rest.

For a DIY approach, both Freetrade and Lightyear offer commission-free Stocks and Shares ISAs where you pick your own investments. Freetrade's ISA is free, and the platform gives access to ETFs, funds, gilts, and thousands of individual stocks.

Another team member opened a Stocks and Shares ISA for the first time this year. The whole process via Monzo Invest took about five minutes. Whether it was the right call, ask us again in five years. You can read more about how that works in our Monzo Investments review.

If the idea of investing makes you nervous, start with our beginner's guide to investment risk. And for a full comparison of investment ISA options, see our best investment ISA 2026 roundup.

Capital at risk. The value of investments can go down as well as up. You may get back less than you invest. Tax treatment depends on your individual circumstances and may change.

Explore JPMorgan Personal Investing

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Premium Bonds: the wildcard

Premium Bonds had a rough start to the year. NS&I cut the prize fund rate to 3.30% from the April 2026 draw, down from 3.60%. The odds of any single £1 bond winning a prize also lengthened to 23,000 to 1, from 22,000 to 1.

The appeal of Premium Bonds has always been the chance of a big win, tax-free. But the reality is that most people with typical luck earn significantly less than the headline 3.30% rate. With easy-access cash ISAs paying well above that and also offering tax-free returns, the case for holding a large chunk in Premium Bonds is weaker than it has been.

That said, they remain 100% backed by HM Treasury, there is no risk to your capital, and winnings are completely tax-free. For people who have already maxed out their ISA allowance and want a safe home for additional cash, they still have a role to play. You can check the latest details on the NS&I website.

We have compared Premium Bonds against Chip's Prize Saver in detail in our Chip Prize Saver vs Premium Bonds post, if you want a side-by-side breakdown.

What we are actually doing

To be clear, we are not suggesting you do the same. Everyone's situation is different, and what works for us might not work for you. But for transparency, here is what the CoolCuration team has done this April.

Between us, we are splitting across cash ISAs, Stocks and Shares ISAs via Monzo Invest and Freetrade, and keeping emergency funds in easy-access savings. One person is using the £CSH2 SONIA tracker inside a Freetrade ISA as a holding position. Another has gone all-in on a Trading 212 cash ISA for the simplicity and promo rate. Nobody is doing anything radical. The point is just to use the allowance before inertia kicks in.

This is the psychology of it. Most people mean to sort their savings in April and then forget until the following March, when they panic-transfer everything in the final week. We have all done it. The advantage of doing it now is that your money earns interest from day one of the tax year rather than sitting idle for months.

Quick action checklist

Check your current savings rate. If it is below 3%, you are almost certainly leaving money on the table. Even a quick switch could mean hundreds more in interest over a year.
Open or top up a cash ISA. This is the last year you can put the full £20,000 in cash before the limit drops to £12,000 for under-65s.
Consider a Stocks and Shares ISA if you are saving for five or more years. Start small if you are new to it. From next year, you will need to put at least £8,000 of your ISA allowance into non-cash options anyway.
Set up auto-saving via Chip or Monzo pots if you struggle to save consistently. Automating even small amounts adds up faster than you think.
Review your Premium Bonds. With the prize fund rate now at 3.30% and cash ISAs paying above 4%, your money may work harder elsewhere.
Use our referral links below if you are opening new accounts. It costs you nothing and supports CoolCuration.

Disclaimer

This is not financial advice. This article is for informational purposes only. Nothing in this post constitutes a recommendation to open any particular account, invest in any product, or take any specific financial action. We are sharing what we have found and what works for us, not telling you what to do with your money.

Savings rates, ISA rules, and tax treatment can change at any time. Rates quoted were correct at the time of writing (April 2026) but are subject to change without notice. CoolCuration is not authorised or regulated by the Financial Conduct Authority and cannot provide personalised financial advice. Always do your own research or speak to a qualified, independent financial adviser before making financial decisions.

Your eligible deposits are protected up to £120,000 per person per banking licence under the Financial Services Compensation Scheme (FSCS). Investment products are covered up to £85,000 under FSCS investment protection. Capital is at risk when investing. The value of investments can go down as well as up and you may get back less than you invest. Past performance is not a reliable indicator of future results.

Some links in this article are referral links. Using them costs you nothing and helps support CoolCuration. Our opinions are not influenced by referral partnerships.

Frequently asked questions

What is the ISA allowance for 2026/27?

The ISA allowance for the 2026/27 tax year remains £20,000 per person. This is the total you can pay across all ISA types (cash, stocks and shares, lifetime, and innovative finance) between 6 April 2026 and 5 April 2027. You cannot carry forward any unused allowance from previous years.

Can I have more than one ISA in the same tax year?

Yes. Since April 2024, you can open and pay into multiple ISAs of the same type in the same tax year. So you could have two cash ISAs with different providers, as long as your total contributions across all ISAs stay within the £20,000 annual limit. Not all providers support this, so check before opening.

What is the Personal Savings Allowance UK?

The Personal Savings Allowance lets basic rate taxpayers earn up to £1,000 in savings interest per year without paying tax. Higher rate taxpayers get a £500 allowance. Additional rate taxpayers do not get a PSA at all. Interest earned in an ISA does not count towards this limit, as ISA interest is already tax-free.

Is a cash ISA worth it in 2026?

For most savers, yes. Even if your PSA covers your interest right now, a cash ISA shields future growth from tax. This is especially relevant given the April 2027 changes: the cash ISA limit drops to £12,000 for under-65s, so maximising your allowance this year locks in more tax-free savings while you can. Higher rate taxpayers with larger pots benefit the most immediately.

What is the best savings account UK right now?

The best easy-access cash ISA rates are around 4.5% to 4.6% AER from providers like Plum and Tembo. Fixed-rate ISAs are paying up to 4.5% for one-year terms. Outside of ISAs, some regular savers like First Direct offer up to 7%, though with monthly deposit limits. For a full comparison, see our best savings accounts page.

Should I put money in savings or invest?

It depends on your timeline. For money you might need within five years, cash savings are generally safer since your capital is protected. For longer-term goals, investing historically offers higher returns but comes with the risk of losing money. Many people do both, keeping an emergency fund in cash while investing for the longer term. Our beginner's guide to investment risk covers this in more detail.

Are Premium Bonds worth it in 2026?

Premium Bonds are less competitive than they were. The prize fund rate dropped to 3.30% in April 2026, and most holders with typical luck earn below that. With easy-access cash ISAs paying over 4% tax-free, your money is likely to grow faster in a cash ISA. Premium Bonds still make sense for people who have already used their ISA allowance and want HM Treasury-backed security with a chance of a big win.

Is this the last year for full cash ISA contributions?

Yes, for under-65s. From April 2027, the cash ISA allowance drops to £12,000, with the remaining £8,000 of your £20,000 total allowance needing to go into stocks and shares or other ISA types. Savers aged 65 and over keep the full £20,000 cash ISA limit. If you want to maximise cash ISA contributions, 2026/27 is your last chance.