Savers are being urged to act quickly to use this year's cash Isa allowance, with the deadline falling on Easter Sunday, 5 April. The Isa wrapper allows tax-free savings or investments up to £20,000 per tax year, and any unused allowance is lost.
In April 2025, a record £14bn was paid into cash Isas, the highest monthly total since April 1999. This year, a rush is expected due to upcoming changes: from April 2027, the cash Isa allowance for under-65s will be cut from £20,000 to £12,000, prompting wealthier savers to maximise their current allowance.
Anna Bowes of The Private Office warned that Easter falling at the end of the tax year could cause providers to withdraw offers early. However, she noted that top cash Isa rates are currently high, with some paying up to 4.45% fixed or 4.66% variable, driven by Isa season and geopolitical tensions.
Rachel Springall of Moneyfactscompare.co.uk advised savers not to delay, as setting up an Isa takes time. She highlighted that the best deals are from challenger banks and building societies, such as Close Brothers Savings, Furness Building Society, and Plum, which offer rates around 4.45-4.66%.
The allowance reduction, announced in last year's budget, aims to encourage younger savers to invest in stocks. A survey by Aldemore Bank found 51% of people unaware of the changes, with over-55s concerned about retirement savings.
