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ISA Countdown: Banks Press Savers to Use £20,000 Allowance Before April 5 Reset

Experts urge quick action to secure tax-free interest ahead of a 2027 cash ISA rule change.

Overview

  • Halifax, which emailed customers Friday, reminded savers the £20,000 ISA allowance refreshes at 11:59 pm on Sunday, April 5, and any unused portion cannot be carried over.
  • Halifax is also dangling up to £1,200 cashback for eligible ISA transfers or new cash ISAs completed by May 31, with payouts to Halifax current accounts and transfers required from outside Lloyds Banking Group.
  • Money advisers describe a pre‑deadline “golden window” as providers lift rates above 4%, and they urge savers to check their ISA rate and consider switching using the official transfer process to keep past tax‑free status.
  • From April 2027, the cash ISA limit for under‑65s will fall to £12,000 while the overall £20,000 ISA allowance stays in place to split across ISA types, and media reports say HMRC is considering curbs on workarounds that are not yet confirmed.
  • Industry analysis warns long spells in low‑rate cash ISAs can cost thousands over time, and with the personal savings allowance frozen, more people risk tax on interest held outside ISAs.