For savers, cash ISAs could offer a distinct advantage as the interest rates offered are not taxed. This means that returns on a cash ISA could be considerably more fruitful than other types of savings accounts. However, cash ISAs do have a maximum deposit amount, which is subject to change each tax year. This means that savers are only permitted to deposit funds within the maximum amount each tax year.
It is important to note that, even in the situation where you have withdrawn funds from the cash ISA so that the balance is below the maximum deposit amount, you would not be allowed to add extra funds to the account if you had already paid in the maximum deposit within that tax year.