How cash ISAs can help you save for your sunny days
Updated March 2026
4 minute read
How cash ISAs can help you save for your sunny days
Last updated March 2026
4 minute read
Brighter days are on the way. And if you're anything like us, you'll already be dreaming about those unforgettable moments that spring and summer bring... Time with family and friends, far-away holidays and great adventures.
That’s why, as we get closer to the new tax year, now is the perfect time to start thinking about how ISAs can help you save for your sunny days.
ISAs have grown in popularity since they launched in 1999. This is likely because they offer a great, tax-free* way to save and make the most of your money.
Each tax year, you can save up to £20,000 into ISAs. This is called your annual allowance**. It’s set by the government and because of this, could change at any time. The tax year runs from 6 April and ends 12 months later on 5 April.
Keep more of your savings
Recent research from Finder said that 1 in 6 UK adults have no savings at all. That’s equal to around 8.9 million people1.
One reason for this? People sometimes just don’t know where to start. That’s why we’re here to help.
Cash ISAs are thought of as a safe option for savings because:
- There's no exposure to stock market volatility or other risky investments
- With the FSCS, savings up to £120,000 per person per UK regulated bank or building society are safe in a cash ISA***
- You can choose the perfect cash ISA for you, depending on the level of access you'd like.
Grow your savings faster
Grow your savings faster
Your annual ISA allowance of £20,000 resets at the start of every new tax year on 6 April. So, if you save your full £20,000 before the end of the current tax year (which ends on 5 April 2025), you could then add up to a further £20,000 when you get your new allowance from 6 April 2025.
In 2025, this means that by using your full ISA allowance both before and after the new tax year, you could enjoy the benefits of tax-free interest on up to £40,000 in one calendar year. By putting money into an ISA every year, the cumulative benefit can have a significant impact on the growth of your savings.
Your annual ISA allowance gives you a chance to give your savings a boost.
Let’s say you save the full £20,000 before the end of the current tax year (5 April 2026). Once the new tax year begins on 6 April 2026, you could add another £20,000. This is because your allowance will refresh.
That means, in one calendar year, you could get tax-free interest on up to £40,000. By setting money into an ISA every year, the ongoing benefit can have a big impact on how your savings grow.
Saving for your sunny days
Research has shown saving can be great for your mental health. The security it brings can reduce stress and anxiety. It can also lead to you feeling happier in life, with reports of lower rates of depression.
And if that wasn’t enough, saving for future goals can help you develop a proactive mindset2!
How can we help?
At Coventry Building Society, we have a range cash ISAs to help you save for the moments that make life truly memorable. Some let you add money regularly (up to your annual ISA allowance), so you can save at your own pace. Others let you deposit a lump sum and lock your money away. You’ll also find some with flexibility built in, so you can take your money out and replace it later, without impacting your annual allowance ****.
If you're dreaming about your next break, planning something special or just looking to show your sunny day fund some love, an ISA could be the answer. They’re a great, tax-free way to help you grow your money.
If you'd like to find out more, take a look at our ISA guides. They’re packed full of up-to-date information to help you make the most of cash ISAs:
Published December 2025
* Tax treatment depends on individual circumstances and may be subject to change.
**This is lower for Junior ISAs where the limit is £9,000, and Lifetime ISAs where the limit is £4,000. Correct for 2026/27 tax year. Cash ISA allowances are scheduled to change from April 2027. Find out more by visiting the government website.
***Your eligible deposits held by a UK establishment of Coventry Building Society are protected up to a total of £120,000 by the Financial Services Compensation Scheme, the UK’s deposit guarantee scheme. Any deposits you hold above the limit are unlikely to be covered. Please ask us for further information or visit www.fscs.org.uk.
**** Ts&Cs and eligibility criteria apply. At Coventry Building Society, you can pay some or all of the full limit into one cash ISA. However, other ISA providers may allow subscriptions to multiple cash ISAs with the same £20,000 limit within the same tax year.
Sources:
[1] Source - Savings statistics: Average UK savings in 2026
[2] Source - The Psychological Benefits of Saving for Future Goals Explained
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