Savers are being urged to act quickly to make the most of this year's cash Isa allowance, as the deadline falls on Easter Sunday, 5 April. The Isa wrapper allows tax-free savings of up to £20,000 per tax year, but for those under 65, this limit will be cut to £12,000 from April 2027.
Interest rates on cash Isas are currently attractive, with top fixed-rate deals offering around 4.45%. Variable-rate Isas, including bonuses, can pay up to 4.66%. Experts warn that some providers may withdraw their offerings early to process applications before the deadline.
Anna Bowes of The Private Office said: 'A combination of being right in the thick of the Isa season, plus the conflict in the Middle East raising expectations of a base rate hike, means that, in many cases, the top cash Isa rates are currently paying more than they have for almost a year.'
Rachel Springall of Moneyfactscompare.co.uk added: 'Savers should not leave it too late to get their Isa set up or they risk losing the chance to use this year's allowance.' She noted that the best deals are often from challenger banks and building societies, not the big high street banks.
Recent research by Aldermore bank found that 51% of people were unaware of the allowance changes. Among over-55s, there is concern that the new rules will make it harder to build retirement savings. The government says the reduction is designed to encourage younger savers to consider investing in the stock market.
