Published: 20 February 2025
A Cash Individual Savings Account (Cash ISA) helps you save with tax-free interest. But what happens when that ISA ‘matures’, or reaches the end of its fixed term?
When do Cash ISAs mature?
A Cash ISA ‘matures’ when it reaches the end of the interest rate term as agreed in the product terms and conditions. The maturity date will be a specific date in the future that could be linked to the date you opened the account, but this may not always be the case.
Fixed rate Cash ISAs can last for different periods of time. For example, one, two, three, and five year fixed rate Cash ISAs can be found as standard but there may also be others for in between periods such as 18 or 6 months. Your chosen provider will confirm the maturity date when you open your Cash ISA.
So, what happens when a Cash ISA matures?
Before your Cash ISA matures, your savings provider will get in touch to remind you of your options.
You will usually receive an email or letter around two weeks before your maturity date, so you have time to consider what you want do next with your Cash ISA funds.
At that point you’ll have three options:
1. Move your money into a different savings account with your current provider - this could be to another Cash ISA account, for example.
2. Do nothing – and your savings will be transferred to a follow on account such as an easy access Cash ISA. Some providers will automatically transfer you into another fixed rate account if that is what you had before. Your provider will send you the details of the default account including the interest rate in your maturity letter/email.
3. Take out your money – You have the option to take your savings and spend them as you wish. Or transfer your Cash ISA savings to a different bank or building society.
If you decide that you don’t want to let your funds mature into the do–nothing option you need to provide your maturity instructions before maturity. Your provider will let you know the date that they need to receive your instructions by. You can usually give your instructions over the phone, at a branch, by post or online.
Remember, if you choose to withdraw or transfer your savings to a non-ISA account, or don’t follow the ISA transfer process, your money will lose its tax-free status.
Savings account maturitiesRules for a maturing Cash ISA – what are they?
There aren’t any specific “rules” about what to do when a fixed rate Cash ISA matures. But you do have options for what to do with your money when your fixed rate Cash ISA reaches the end of its term - which you can find earlier in this article!
So, there you have it – the key things you need to know about what to do when a Cash ISA matures. And if you’re looking for more helpful information on this topic, take a look at our savings account maturity page.
The tax treatment depends on the individual circumstances of each customer and may be subject to change in the future.
This article is not advice, and you should seek independent financial or legal advice if needed.
