Overview
- The use-it-or-lose-it ISA allowance, which resets on 5 April, wipes any unused part of the £20,000 tax-free limit.
- Competition has pushed cash ISA returns to about 4.65% on top easy-access deals, with platforms showing roughly 4.2%–4.8% and a 6% XTB promo for new clients that lasts 90 days and opens before the end of April, ahead of a planned cut to the cash ISA cap for under-65s to £12,000 in April 2027.
- Banks warned that Easter bank-holiday processing could delay transfers, so payments must reach your ISA provider by 5 April to count for this year.
- Other tax-efficient paths include pensions, which allow up to £60,000 a year or 100% of pay with tax relief, and a Lifetime ISA, which adds a 25% bonus on contributions.
- Monzo highlighted low-effort saving tools, saying its roundups feature yields about £109 a year on average per user, with one saver having built roughly £45,000.