Martin Lewis has warned UK savers to take advantage of their Individual Savings Account (ISA) allowances before they “lose” out. The founder of MoneySavingExpert.com has urged people to make the most of the £20,000 ISA allowance before the tax year comes to an end next month. Savers have just weeks before the April 6 deadline to deposit money tax-free in a top cash savings ISA or a shares investment ISA.
While there is no limit to the overall amount that can be stored in an account, banking customers are only able to top up their ISAs by a maximum of £20,000 per financial year. The cap on annual Cash ISA savings is expected to decrease to £12,000 from April 2027 for under-65s in a bid to attract younger investors.
Martin Lewis warned savers against leaving it to the last minute to top up the allowances as “some providers shut their virtual doors early”.
A post in the latest MoneySavingExpert newsletter reads: “The tax year, and thus the ISA year, ends on April 5. If you don’t use this year’s allowance, you lose it.
“You get a new ISA allowance on April 6. If you haven’t used your ISA this tax year, and have enough money, you could put £20,000 in now, and another £20,000 on April 6, using next tax year’s allowance.
*** Ensure our latest personal finance headlines always appear at the top of your Google Search by making us a Preferred Source. Click here to activate or add us as Preferred Source in your Google search settings. ***
“Even if you don’t have enough to use next year’s, if it’s right for you, get the money in now, in case you have more to put away next year.”
The personal finance guru also recommended customers shop around for the different deals available before the deadline if planning to open an account.
Currently, people can save up to £20,000 annually in Cash ISAs, Stocks and Shares ISAs or a mix of both. From April 2027, however, the annual adult Cash ISA limit will be slashed to £12,000.
Only over-65s will retain the full £20,000 annual Cash ISA allowance, while the annual overall contribution limit into adult ISAs will remain at £20,000 in a bid to encourage savers who reach the £12,000 limit to put money into stocks and shares.