Savers warned over last chance to beat the ISA deadline as competition on cash rates rises

Savers have been warned they have just a few days left to make use of this year’s ISA allowance and take advantage of the improved rates on offer as the end of the tax year looms.

Everybody in the UK can put up to £20,000 in a tax-free account, known as an ISA, every year.

After 5 April, however, anything you’ve not used is immediately lost and the £20,000 is reset the following day, meaning it’s vital for long-term earnings to use whatever you can before that date.

And right now, competition between cash ISA providers is especially fierce, with savings rates pushing upwards over the past month as the approaching deadline, plus the diminished likelihood of the Bank of England cutting interest rates, combine to give savers a huge range of enticing options.

Most of the best rates are not with the major banks and building societies right now, so it’s worth looking to see where the best rates are and whether you should move your cash – sooner rather than later, to beat the deadline and also before those top deals are withdrawn.

“With just days left of the financial year, the average rate of the top 10 easy access cash ISAs is currently 4.65 per cent – well above the most recent inflation figure,” said Kate Steere, personal finance expert at Finder.

“The last-minute competition to attract end-of-tax-year ISA stragglers will be over by the end of this week, so savers should think about tying up any loose ends in the next few days, as we may well see providers lower some of these eye-catching bonus rates.

“Savers should note that some of the most competitive cash ISA rates are currently being offered by investing platforms – in fact, these make up the top four – so it’s worth looking outside of the usual suspects.

“While savings rates are unlikely to plummet, it’s worth taking advantage of the promotional rates being offered at the end of this ISA season.”

Finder’s research shows names such as Prosper, eToro, Trading 212, Plum and Moneybox all high on the best rates list, offering between 4.8 and 4.2 per cent.

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But it’s also important for savers looking to open a cash ISA to look beyond the headline rate and ensure the overall package is one which suits their needs.

Different providers can include time-limited interest rate boosts, a maximum number of withdrawals annually or other clauses, as well as common ISA differences such as whether it is ‘flexible’ or not – in other words, that it allows you to withdraw money and replace it within the same tax year without affecting your remaining allowance.

A good example of the above is a brand new offering from XTB, an investment platform which has launched their first cash ISA to sit alongside their stocks and shares offerings.

Heading into the ISA deadline it tops the available rates thanks to a short-term interest rate boost, meaning 6% is available for new clients.

But the promotion is only available to those signing up before the end of April, and the higher rate is in effect for 90 days after you open your account – thereafter it’s back to their variable rate, currently at a still-competitive 4%.

Plum, meanwhile, have just made their cash ISA flexible, having also recently removed restrictions on the number of withdrawals.

Tesco Bank’s Chris Henderson also served a reminder that this particular transition into a new financial year is important for two reasons.

“With the tax year end falling on the Easter bank holiday weekend, payments may take longer to go through,” he cautioned.

“It’s therefore important, if you want to use your 2025/26 ISA allowance, that you check your payment will arrive with your ISA provider by 5 April.

“It’s also the last year where savers under 65 can save up to £20,000 all in cash before this reduces to £12,000 from April 2027, so be sure to take advantage of this if you can.”

And if you’re still hesitating over whether to open a new ISA, move your money or how best to save for your goals, new research suggests simply talking about it to somebody else may help significantly.

Columbia Threadneedle said their data shows nearly three quarters of people in a relationship (72%) say discussing money openly has led to better financial decisions, while nearly a third (30%) increased the amount they were saving after talking about money – particularly notable as we head towards the ISA deadline.

“Talking about money can feel uncomfortable, but this research shows that when couples do have open financial conversations, the benefits are clear. People feel more confident, more in control and better able to plan for the future,” said Ross Duncton, from Columbia Threadneedle Investments.

“What’s particularly encouraging is that these conversations often lead to action – whether that’s reviewing savings, changing financial habits or taking first steps towards investing. Small, regular conversations can play a powerful role in turning long-term intentions into practical financial decisions.”