Overview
- The current tax year ends on 5 April, giving savers a final window to use the £20,000 ISA allowance before it resets on 6 April, and several providers may stop new applications early.
- From April 2027 the annual cash ISA limit will fall to £12,000 for most under‑65s, over‑65s will keep a £20,000 cash allowance, and the overall ISA cap will remain £20,000 with existing ISA balances unaffected.
- HMRC plans enforcement to block workarounds to the lower cash cap, including charges on interest from cash parked in stocks and shares ISAs, checks on ‘cash‑like’ holdings and restrictions on certain transfers.
- Providers are competing for deposits with stronger offers, including easy‑access cash ISA rates up to 4.68% (Trading 212), 4.52% (Moneybox) and 4.15% (Virgin Money), a 1‑year fixed 4.20% (Investec) and HSBC cashback up to £500 on new or transferred funds until 11 May.
- Personal finance experts warn more savers are breaching the personal savings allowance as rates rise, prompting calls from Martin Lewis and others to ‘use it or lose it’ and move interest‑earning cash into ISAs.