Cash ISA Holders Given Four-Week Warning to Maximise Deposits
Brits are being urged to take advantage of their annual tax-free savings limit as the deadline approaches. Cash ISA holders have just four weeks to use up their allowance before the new tax year begins on April 6, 2026.
Current Allowance and Upcoming Changes
Currently, individuals can deposit up to £20,000 in Cash ISAs without paying tax on the interest earned. This limit will remain unchanged for the upcoming tax year. However, it is set to be reduced for those under 65 starting in 2027, making this year's opportunity particularly critical for savers.
Research Reveals Widespread Underuse
According to research conducted by Tesco Bank, many people in the UK have not fully utilised their ISA allowance. On average, Cash ISA holders have deposited just over £8,000 (£8,129) this tax year. This means millions of savers have more than £11,000 (£11,871) left to invest before the deadline.
The study also found that 11% of Brits have not contributed anything to their Cash ISA this financial year. Only one in five people have maximised their full allowance, highlighting a significant gap in savings behaviour.
Expert Advice on Tax-Free Savings
Chris Henderson, save and pay director at Tesco Bank, emphasised the benefits of Cash ISAs. "Cash ISAs are a great way to save," he said. "They allow you to pocket your interest entirely tax-free, which could help you achieve your goals sooner."
Henderson added, "Whether you’re saving for a once‑in‑a‑lifetime holiday, home renovations, or for one of life’s milestones, ISAs are worth considering. It’s encouraging to see so many have already maxed out their allowance, and with several weeks left to go until the deadline, many others are continuing to make use of their ISAs."
Why Act Now?
With the tax year resetting in April, any unused allowance will be lost, as ISAs do not allow carry-over into the next year. This makes the coming weeks a crucial period for savers to:
- Review their current savings and ISA contributions.
- Consider depositing additional funds to reach the £20,000 limit.
- Explore the tax-free benefits for long-term financial goals.
As the deadline looms, financial experts recommend that individuals assess their savings strategies to make the most of this tax-efficient opportunity before it expires.
