Overview
- Moneyfacts says cash ISA choice hit a record 712 products at the start of April, with the average one‑year fix rising to about 4.01%.
- Major providers are pushing new deals, with Nationwide’s latest fixed‑rate cash ISAs offering up to 4.50% AER.
- From April 2027, under‑65s will be limited to £12,000 of the £20,000 annual ISA allowance in cash, with the rest directed to investment ISAs, while existing balances keep their tax‑free status.
- Treasury talks on the overhaul have yet to settle key points such as how cash inside stocks and shares ISAs will be taxed, what counts as a cash‑like asset, and whether transfers will face new limits, according to industry reports.
- Inflation rose to 3.3%, and Moneyfacts analysis reported more than a quarter of cash ISAs now pay below that rate, which is prompting fresh calls for savers to switch to stronger accounts.