Meaning & use
cash ISA
Last updated
Meaning
nouncountableBritishfinance
A UK savings account that lets you save money without paying tax on the interest.
Grammar: Countable; you can say 'a cash ISA' or 'cash ISAs'. Often used with 'open', 'put money into', or 'pay into'.
Patterns
- open a cash ISA
- put money into a cash ISA
- pay into a cash ISA
She opened a cash ISA to save for a house deposit.
You can put up to a certain amount into a cash ISA each year without paying tax on the interest.
Many people use a cash ISA because the interest is tax-free.
Word forms
| plural | cash ISAs |
|---|
Common combinations
- open a cash ISA
- I opened a cash ISA at my local bank.
- pay into a cash ISA
- He pays into a cash ISA every month.
- tax-free cash ISA
- A tax-free cash ISA is attractive to savers.
- cash ISA allowance
- The cash ISA allowance changes each tax year.
Synonyms and how they differ
- tax-free savings account
- A general term; 'cash ISA' is the specific UK product with a yearly limit.
Word family
- ISA abbreviation
- Individual Savings Account; the general name for this type of UK tax-free account, which can also hold stocks and shares.
- stocks and shares ISA noun
- A similar UK account where you invest in shares instead of holding cash.
Commonly confused: cash ISA or ISA?
cash ISA vs ISA
'ISA' is the general term; a 'cash ISA' is one kind of ISA that holds cash savings.
Practice
In the UK, what is the main benefit of a cash ISA?
Choose one answer.
The key feature is tax-free interest. Option 3 describes a stocks and shares ISA, not a cash ISA. Options 1 and 2 are not guaranteed features.
Make it your own
Write a sentence using “cash ISA”, then check it and compare it with the examples above.