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Are you making the most of your tax-free ISA allowance before 2027?
May 15, 2026
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Many people are looking for simple, effective ways to make the most of their savings. One option is to use your ISA allowance to save tax-free* – and to make sure the money you’ve already saved is working as hard as possible.
From April 2027, the government plans to reduce the annual cash ISA limit to £12,000 for under-65s , so some savers have a limited opportunity to take advantage of the full £20,000 cash allowance. This means now is a great time to consider a cash ISA.
When you find a cash ISA that works for you, combining them into one place – without losing its tax-free* status – can be an effective way to optimise your savings. Holding your ISAs together with one provider can make managing your savings simpler, reduce admin, and give you greater visibility of balances and interest earned.
Simplify your savings by combining your cash ISAs
If you already have a cash ISA, transferring your existing ISA balance allows you to move funds from one provider to another – all while keeping your tax-free* benefits intact and building that compound interest. You can transfer part or all of your previous tax year’s subscriptions. Transfers also give you the opportunity to consolidate multiple ISAs, making it easier to manage your savings in one place.
One of the biggest advantages of transferring in is the convenience of managing all your ISAs together. When your savings are in one place, it’s easier to track your balance, monitor interest rates, and stay on top of your goals. It’s a straightforward way to save without the need to juggle multiple accounts.
The transfer process itself is simple – your new provider will handle it for you, so your savings remain protected and tax-free* throughout. Once complete, you’ll have a clearer view of your total savings, giving you more confidence in how you manage your money.
How to transfer a cash ISA into Marcus
You can transfer in all or some of the existing cash ISA from most other providers - up to the £1.5m limit of your Marcus Cash ISA.
We follow a standard process to ensure your ISA is transferred to us securely and retains its tax-efficient status.
To transfer in an existing cash ISA from another provider:
- Log in to your Marcus account online or in the app.
- Select your Marcus Cash ISA.
- Open ‘Manage account’ and choose ‘Transfer in’ – in the app, tap the three dots in the top-right corner.
- Follow the on-screen steps and enter your current provider’s details.
- Review your request and click ‘Confirm transfer’.
- We’ll start the transfer and email you once it’s complete.
You'll continue to earn interest on the money in your existing cash ISA up to and including the day we transfer the money to your Marcus Cash ISA.
Once your cash ISA transfer is complete, interest on the transferred money will be backdated to the day we received the money from your provider.
Give your savings more time to grow tax-free*
An ISA’s tax-free* status means that the earlier you start saving, the longer your money can grow without being taxed on the interest it earns.
By acting early, you ensure your savings work as hard as possible, letting compound interest do its work, and giving you the maximum long-term tax-free* benefits. And if you already have an ISA elsewhere, transferring it early in the tax year may also help you start earning more interest straight away.
Why a cash ISA, and why transfer in?
A cash ISA is not just a tax-efficient way to save – it also offers the peace of mind you need in a time of economic uncertainty. Here are some of the key benefits:
- Tax-free* growth – No tax on any interest earned, ensuring more of your money stays in your pocket.
- Compound interest advantage – The earlier you start making deposits, the more time your money has to grow.
- Protection from stock market volatility – Unlike stocks and shares ISAs, cash ISAs are not subject to stock market fluctuations, making them a more stable savings option.
- FSCS protection – Eligible deposits in cash ISAs are covered up to £120,000 under the Financial Services Compensation Scheme (FSCS).
- No impact on your Personal Savings Allowance (PSA) – Any interest earned in a cash ISA doesn’t count towards your PSA, allowing you to keep more of your interest tax-free*.
- Transfer convenience – Bring your ISAs together in one place for easier management. Consolidating your ISAs can help you keep track of your savings and simplify your finances.
Secure your tax-free* savings now
With 2027 fast approaching, the longer you delay opening, topping up, or transferring your cash ISA, the more potential tax-free* growth you miss out on. A cash ISA provides a secure and efficient way to grow your savings while ensuring your interest remains completely tax-free*.
Whether you're aiming for short or long-term security, consider reviewing your existing ISAs to see if transferring them could help you earn more interest and make managing your savings easier.
Don’t wait – whether you’re opening a new ISA or transferring an existing one, acting now can help you make the most of your tax-free* allowance this year.
*Tax-free is the rate payable where interest is exempt from UK income tax. Your savings balance will be eligible for this tax benefit for so long as it is held in a valid cash ISA account.
The tax treatment of ISAs and the applicable Government rules are subject to change. The benefits of your account for tax purposes will depend on your personal financial circumstances.
This article is for informational purposes only and is not a substitute for individualised professional advice. Articles on this website were commissioned and approved by Marcus by Goldman Sachs®, but may not reflect the institutional opinions of The Goldman Sachs Group, Inc., Goldman Sachs International Bank, Goldman Sachs & Co. LLC or any of their affiliates, subsidiaries or divisions. Information and opinions expressed in this article are as of the date of this material only and subject to change without notice. This article is not a product of Goldman Sachs Global Investment Research. The information contained in this article does not constitute a recommendation from any Goldman Sachs entity to the recipient, and Goldman Sachs is not providing any financial, economic, legal, investment, accounting, or tax advice through this article or to its recipient. Neither Goldman Sachs nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this article and any liability therefore (including in respect of direct, indirect, or consequential loss or damage) is expressly disclaimed.
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