UK savers told to act now before Easter Sunday cash Isa deadline | Cash Isas
Savers who want to make the most of this year’s cash Isa grant are being urged not to leave it to the last minute as the application deadline falls on the Easter weekend.
The Isa package allows people to save or invest money and benefit from tax-free returns. Each tax year people can pay up to £20,000, which can then be carried forward to subsequent years without losing any tax benefits.
£14bn was paid into Isas in cash in April 2025 – the highest monthly amount since April 1999 – and there could be more this year due to the impact of changes to allowances.
For anyone under 65, the limit on how much cash can be held in an Isa will be reduced from £20,000 to £12,000 after this tax year. Although it is more than most people hold in their accounts, wealthier savers are likely to want to use the entire allowance before it is taken out.
The deadline for money to be paid for this tax year is April 5, which is Easter Sunday.
Savers want to use their allowances, says The Private Office’s personal savings expert Anna Bowes “We need to take action as Easter is right in the middle of the end of the tax year and some providers are already withdrawing their offers early to ensure they can process everything before the deadline.”
He added that savers will find good interest rates on offer. “The fact that we are in the middle of Isa season, with conflicts in the Middle East raising expectations of base rate hikes, means that in many cases top cash Isa rates are now paying more than they have for almost a year,” he said.
Rachel Springall, financial expert at comparison site Moneyfactscompare.co.uk, said savers should not leave it too late to get their Isa set up or they risk losing the chance to use this year’s allowance.
He added: “Isas season has seen activity on top rates tables. Some of the best deals are being made by challenger banks and building societies, so it’s worth looking beyond the high street banks.”
Moneyfacts and Private Office’s best buy tables show fixed rates of around 4.45% are available for savers looking to lock up their money. Close Brothers Savings, Furness Building Society and Vida Savings all have a range of fixed term accounts paying this rate or slightly below.
For variable rate Isas, where interest rates can rise and fall, Plum offers 4.66% while Tembo Money pays 4.55%, both including bonuses for the first 12 months. Most of these providers are online only.
The decision to reduce the cash Isa allowance for those aged under 65 was announced in last year’s budget and was designed to encourage young savers to consider investing in the stock market.
Latest research by Aldemore bank found that 51 per cent of people were unaware of the changes, but there were concerns among over-55s that the new rules would make it harder for people to save for retirement.
