Maxi and mini ISAs: what they were and what happens now

If you are searching for a mini ISA or a maxi ISA, the short answer is that neither exists any more. The two labels were retired on 6 April 2008, when the ISA rules were restructured and the old split was replaced by cash accounts and stocks and shares accounts¹. Any money you held in a mini or maxi ISA simply carried on inside the new structure, keeping its tax-free status. What you hold today is a cash ISA, a stocks and shares ISA, an innovative finance ISA or a Lifetime ISA².

The bigger change is still ahead. From 6 April 2027, people under 65 will be able to pay no more than £12,000 a year into cash ISAs, within an overall ISA allowance that stays at £20,000³. Savers aged 65 and over keep the full £20,000 cash ISA limit⁵. The lower cap applies only to new deposits made from that date, not to money already saved⁶.

This page explains what the old mini and maxi split was, how the rules changed, what the £12,000 cap means for the way you use your allowance, and what happens to the money you have already built up.

Maxi and mini ISAs: the old two-way split

Before April 2008, an adult could hold one mini ISA and one maxi ISA in a tax year, and the two worked differently. A mini ISA let you split your allowance between a cash component and a stocks and shares component, each with its own limit. A maxi ISA put the whole allowance into stocks and shares, with the option of a cash element inside it. The rules were fiddly, and the two products were often confused with each other.

The 2008 restructure swept that away. The Regulations replaced maxi, mini and TESSA-only accounts with cash accounts and stocks and shares accounts, and raised the subscription limits at the same time¹. From that point the question was no longer which wrapper you held but how you split your allowance between cash and investments.

The old terminology survives mainly in the small print. The financial rules still refer to "an ISA (mini or maxi and including all components whatever the underlying investment)" when setting out which contracts carry no right to cancel⁹. That is a legacy reference, not a product you can open. If a provider's paperwork mentions a mini or maxi ISA today, it is describing the history of an account, not offering you a new one.

How the ISA rules changed when maxi and mini ISAs ended

The 2008 change was the first of several. The most recent reshaping came on 6 April 2024, when the rules on how many ISAs you can hold were loosened. You can now open and pay into more than one ISA of the same type in a tax year, so the old restriction of one cash ISA plus one stocks and shares ISA no longer applies¹⁰. The Lifetime ISA is the exception: you can only pay into one per tax year¹¹.

A further set of changes takes effect from 6 April 2027⁸. These include the £12,000 cash ISA limit for under-65s, a restriction on moving money from a stocks and shares or innovative finance ISA into a cash ISA for that age group, and transitional rules for people who turn 65 part-way through a tax year¹².

The direction of travel is consistent: fewer restrictions on how many accounts you hold, more restrictions on how much of your allowance can sit in cash. The overall allowance has not moved. It was £15,000 from 1 July 2014 when all ISAs became New ISAs, and it has been £20,000 since the 2017/18 tax year².

Putting the whole allowance in cash

For most of the ISA's history, cash was the poor relation. Until January 2014, savers could put only half their allowance into a cash ISA; a rule change that month allowed the whole allowance to go into cash instead¹³. That freedom is what the 2027 cap reverses, for under-65s at least.

From April 2027, someone under 65 who wants to use the full £20,000 allowance will need to put at least £8,000 of it somewhere other than cash, typically a stocks and shares ISA or an innovative finance ISA¹⁴. The £12,000 cash portion and the £8,000 remainder add up to the £20,000 overall limit¹⁵.

That split matters because the two halves behave differently. Cash ISAs are deposit accounts: the money is protected by the Financial Services Compensation Scheme and does not fall in value, but it also does not grow beyond the interest paid. Stocks and shares ISAs hold investments, which can fall as well as rise. The choice between them is about time horizon and tolerance for loss, not about which is better.

The ISA allowance stays at £20,000

The headline figure is unchanged. The annual ISA allowance remains £20,000, and the government has said it will stay there until April 2031⁷. The Lifetime ISA limit stays at £4,000 and the Junior ISA limit at £9,000 over the same period⁷.

What changes is how that £20,000 can be divided. The allowance can be split across different types of ISA, such as cash ISAs and stocks and shares ISAs¹⁵. From 6 April 2027, for under-65s, no more than £12,000 of it can go into cash³. If you have paid £12,000 into a cash ISA, you can still pay up to £8,000 into stocks and shares ISAs or other ISA types¹⁵.

The allowance is an annual one. It does not roll over: unused allowance is lost at the end of the tax year, which is why the timing of payments matters as much as the amount. For the current tax year, the cash ISA allowance for under-65s is still up to £20,000¹⁶.

Sources:¹⁶

Cash ISA cap: £12,000 for under-65s

The £12,000 figure was announced at Budget 2025 and confirmed in the legislation that follows it⁴. The change amends the Individual Savings Account Regulations 1998 to reduce the annual cash ISA subscription limit for individuals aged under 65 from 6 April 2027⁴. The explanatory note to the amending regulations states the effect plainly: "Regulation 6 introduces a £12,000 limit on subscriptions to cash ISA accounts for individuals under the age of 65."⁹

The cap applies to all cash ISAs regardless of the size of the ISA manager, so small and micro businesses offering ISAs cannot be exempted from it¹². It applies to new subscriptions only. The government has said the change "will only apply to new deposits you make from April 2027 and won't have any impact on savings you've already" built up⁶.

Alongside the cap comes an anti-circumvention rule. From April 2027, transfers from non-cash ISAs into cash ISAs will not be permitted, so someone under 65 cannot sidestep the limit by moving investments into cash⁸. Transfers in the other direction, from a cash ISA into a non-cash ISA, remain possible⁸. The purpose is to stop savers using transfers to get around the reduced cash limit¹⁷.

Old mini and maxi ISA money: what happens to it now

Money held in an old mini or maxi ISA is now simply money in a cash ISA or a stocks and shares ISA, and it keeps its tax-free status. Nothing needs to be done. The account continues under its current terms, and the provider's paperwork will describe it as a cash ISA or a stocks and shares ISA.

If you want to move it, the transfer rules are more generous than they were. Cash ISA money can be transferred into a stocks and shares ISA, and you can move some or all of it, from this tax year or previous ones, without losing the tax benefits on the money you transfer¹⁸. Transfers of previous years' subscriptions do not count towards your annual £20,000 allowance¹⁸. You can also combine several ISAs into one by completing an ISA transfer¹⁹.

The reverse route is closing. From April 2027, you will not be able to transfer a stocks and shares ISA into a cash ISA if you are under 65²⁰. The legislation provides that transfers from a stocks and shares ISA or an innovative finance ISA to a cash ISA are prohibited where the account holder is below the age of 65²¹. For those aged 65 or over, the restriction is disapplied¹².

Before transferring anything, it is worth checking whether your current ISA charges a fee to transfer out, whether you would lose interest by closing or transferring early, and whether the ISA you are moving to accepts transfers in²².

What the cash ISA cap means for savers aged 65 and over

Age 65 is the dividing line. Savers aged 65 and over keep a £20,000 cash ISA limit, and the government has said this is "in recognition of the need of those approaching retirement to restructure and derisk their investments"¹². Entitlement applies from the start of the tax year in which someone turns 65¹².

That group can also still move money from a stocks and shares or innovative finance ISA into a cash ISA, which under-65s will not be able to do from April 2027¹². The transfer restriction is disapplied for them¹². In practice this means someone approaching or in retirement can shift investments into cash as they reduce risk, without using up new allowance.

Two other rules stay in place for this group. The charge on interest earned on cash held in non-cash ISAs remains, as does the prohibition on 100% cash-like investments inside a stocks and shares ISA¹². Those rules were not changed by the 2027 reforms.

For anyone whose circumstances are more complicated, free and impartial help is available. The Financial Ombudsman Service handles complaints about ISAs, including disputes about transfers and charges²³. Its quarterly complaints data shows cash ISAs, including cash Lifetime ISAs and Help to Buy ISAs, among the products consumers complain about²⁴. MoneyHelper offers free guidance on savings and tax-free accounts, and debt advice charities can help where savings sit alongside problem debt.

Where the rules differ and what to watch

ISA rules apply across the UK, so the £20,000 allowance and the £12,000 cash cap work the same in England, Scotland, Wales and Northern Ireland. What differs is how ISA money interacts with means-tested benefits, which are administered separately in each nation. Capital held in an ISA counts towards the capital rules for Universal Credit, though a Lifetime ISA gets partial disregard: if you are under 60 and hold one, 25% can be ignored to cover the withdrawal of the government bonus²⁵.

A few practical points are worth knowing. The Lifetime ISA withdrawal charge is 25% if you take money out or transfer the account to another type of ISA before age 60, so it is not a short-term home for cash²⁶. You can take Lifetime ISA savings out from age 60 without that charge²⁶. The rules on contributions for people who turn 65 part-way through the 2027/28 tax year are to be clarified after an industry consultation in 2026²⁷.

Finally, the ISA wrapper is not a guarantee against poor decisions. Tax-free does not mean risk-free, and the protection that applies to cash ISAs through the Financial Services Compensation Scheme does not extend to investment losses in a stocks and shares ISA. The tax treatment of ISAs can change, and the value of the tax benefits depends on individual circumstances²⁸.